If you’re thinking about starting a small business in Singapore, you might have heard of the word “nominee director.” But just what does this mean, and how do it benefit your organization? In this posting, we’ll have a closer look at Singapore nominee director services and how they are able to help you reach your business goals.
What Is a Nominee Director?
A nominee director is really a person or a company that’s appointed to act as a director of a company on behalf of someone else or entity. The nominee director doesn’t have any executive power or authority within the company, but instead acts as a placeholder for the true director or owner of the company. Basically, the nominee director’s name appears on the official company records and documents, however they do not make any decisions or take any actions on behalf of the company.
Why Do Companies Use Nominee Director Services in Singapore?
There are several explanations why companies use nominee director services in Singapore:
Compliance with local laws and regulations: Under Singapore law, every company will need to have a minumum of one director who is ordinarily resident in Singapore. Therefore the director must be a Singapore citizen, permanent resident, or someone who has been issued a jobs Pass or Entrepreneur Pass. If you’re a foreigner who’s starting a small business in Singapore, you may not meet these requirements, and therefore, you will need to appoint a nominee director who satisfies these criteria.
Protection of privacy: Some business owners may prefer to keep their names off the general public records and documents of the business. By appointing a nominee director, the business enterprise owner can maintain their anonymity while still having the capacity to operate their business.
Facilitation of business operations: Occasionally, the business owner might not be able to be physically within Singapore to control the day-to-day operations of the business. By appointing a nominee director who’s locally based, the business owner can make sure that their company complies with local laws and regulations, and that operations run smoothly.
Expansion into new markets: If a business owner is seeking to expand their business into new markets, they may want to appoint a nominee director who has knowledge of the local market and can help the company navigate the neighborhood business environment.
Great things about Using Nominee Director Services in Singapore
There are several benefits to using nominee director services in Singapore :
Compliance with local laws and regulations: As stated earlier, every company in Singapore will need to have at least one director who’s ordinarily resident in Singapore. By appointing a nominee director who satisfies these requirements, you can ensure that your company complies with local laws and regulations.
Protection of privacy: If you’d prefer your privacy and desire to keep your name off the public records and documents of one’s company, a nominee director may help you achieve this.
Facilitation of business operations: For anyone who is unable to be physically present in Singapore to control your company’s operations, a nominee director might help make sure that your company complies with local laws and regulations, and that operations run smoothly.
Flexibility: Nominee director services are flexible, and you may appoint a nominee director for for as long or as short an interval as you need. This is often especially useful if you are testing the waters in a fresh market and are uncertain how long you need to stay in Singapore.
Cost-effective: Nominee director services can be more cost-effective than hiring a full-time director, especially if you only need you to definitely act as a placeholder or for a short period of time.
