Singapore is really a global hub for businesses, with its stable economy, business-friendly policies, and strategic location in Southeast Asia. However, starting a business in Singapore could be complex, specifically for foreign entrepreneurs who are not familiar with the local laws and regulations. Among the common challenges faced by foreign businesses in Singapore is the requirement to appoint an area director. This is where Singapore Nominee Director Services enter into play.
In this article, we shall discuss what Singapore Nominee Director Services are, how they work, and the benefits they can bring to your business.
WHAT EXACTLY ARE Singapore Nominee Director Services?
A Singapore Nominee Director is an individual or a corporate entity that is appointed by a foreign company to do something as its local director in Singapore. The Nominee Director has no involvement in the day-to-day operations of the business, and the foreign company retains full control over its business operations. The Nominee Director’s role is limited to fulfilling the legal dependence on having a local director for the company.
The Nominee Director is usually appointed for just one of two reasons: either the foreign company does not have an area resident director, or the foreign company’s director does not wish to be publicly identified as the director of the Singapore company.
How Do Singapore Nominee Director Services Work?
To engage Singapore Nominee Director Services, a foreign company must engage the services of a professional service provider that provides Nominee Director services. The company will appoint a Nominee Director who meets certain requirements of the Singapore Companies Act. The Nominee Director will sign a Director’s Consent Letter, which confirms that the Nominee Director is willing to act as the local director of the business.
The foreign company will retain full control over the management and operations of the business. The Nominee Director will not be involved with any decision-making processes, and the foreign company’s director will continue to manage the company’s affairs remotely.
The Nominee Director’s role would be to fulfill the legal dependence on having an area resident director for the company. The Nominee Director will provide their name and residential address to the Accounting and Corporate Regulatory Authority (ACRA) along with other government agencies. The Nominee Director will also sign any legal documents required by the Singapore government, like the Annual General Meeting (AGM) resolutions and financial statements.
The Nominee Director’s appointment is usually for a set term, and the service provider provides renewal services if the foreign company requires the Nominee Director’s services for a longer time.
Great things about Singapore Nominee Director Services
Singapore Nominee Director Services offer many perks to foreign businesses that are starting their operations in Singapore. A few of the key benefits include:
Compliance with Singapore laws and regulations
Under the Singapore Companies Act, every Singapore company must have a minumum of one local resident director. Engaging Singapore Nominee Director Services means that the foreign company complies with this legal requirement, that is essential for the business’s operations in Singapore.
Anonymity for foreign directors
Some foreign directors may not desire to be publicly defined as the director of the Singapore company. Engaging nominee director service in Singapore allows the foreign director to remain anonymous while fulfilling the legal dependence on having an area director.
Faster company incorporation
Engaging a Nominee Director might help speed up the process of incorporating a Singapore company. Because the Nominee Director meets the residency requirement, the foreign company can complete the registration process quickly and begin its operations in Singapore without any delay.
Flexibility in managing the company
Engaging a Nominee Director provides foreign directors with more flexibility in managing their Singapore company. Since the Nominee Director does not have any involvement in the business’s day-to-day operations, the foreign director can manage the business’s affairs remotely without the disruption