Singapore is 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, especially for foreign entrepreneurs that are not familiar with the neighborhood laws and regulations. One of the common challenges faced by foreign businesses in Singapore may be the requirement to appoint an area director. This is where Singapore Nominee Director Services come into play.
In this article, we shall discuss what Singapore Nominee Director Services are, how they work, and the benefits they are able to bring to your organization.
What Are Singapore Nominee Director Services?
A Singapore Nominee Director can be an individual or a corporate entity that is appointed by a foreign company to act as its local director in Singapore. The Nominee Director has no involvement in the day-to-day operations of the company, and the foreign company retains full control over its business operations. The Nominee Director's role is limited to fulfilling the legal requirement of having an area director for the business.
The Nominee Director is normally appointed for just one of two reasons: either the foreign company doesn't have a local resident director, or the foreign company's director will not want to be publicly defined as the director of the Singapore company.
How Do Singapore Nominee Director Services Work?
To activate 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 then sign a Director's Consent Letter, which confirms that the Nominee Director is ready to act as the neighborhood director of the business.
The foreign company will retain full control on the management and operations of the company. The Nominee Director will never be involved in any decision-making processes, and the foreign company's director will continue to manage the business's affairs remotely.
The Nominee Director's role would be to fulfill the legal dependence on having a local resident director for the company. The Nominee Director provides their name and residential address to the Accounting and Corporate Regulatory Authority (ACRA) along with other government agencies. The Nominee Director may also sign any legal documents required by the Singapore government, such as the Annual General Meeting (AGM) resolutions and financial statements.
The Nominee Director's appointment is normally for a set term, and the service provider will provide renewal services if the foreign company requires the Nominee Director's services for a longer period.
Benefits of Singapore Nominee Director Services
Singapore Nominee Director Services offer many perks to foreign businesses which are starting their operations in Singapore. A number of the key benefits include:
Compliance with Singapore laws and regulations
Under the Singapore Companies Act, every Singapore company will need to have at least 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.
nominee director service in Singapore for foreign directors
Some foreign directors might not want to be publicly defined as the director of the Singapore company. Engaging a Nominee Director 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. Because the Nominee Director doesn't have any involvement in the business's day-to-day operations, the foreign director can manage the company's affairs remotely without any disruption