If you’re thinking about starting a small business in Singapore, you could have heard of the word “nominee director.” But what exactly does this mean, and how can it benefit your business? In this posting, we’ll take 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 perhaps a company that’s appointed to act as a director of an organization on behalf of someone else or entity. The nominee director does not have any executive power or authority within the business, but rather acts as a placeholder for the true director or owner of the company. In other words, the nominee director’s name appears on the state company records and documents, however they usually do not make any decisions or take any actions with respect to the company.
Why Do Companies Use Nominee Director Services in Singapore?
There are several reasons why companies use nominee director services in Singapore:
Compliance with local regulations: Under Singapore law, every company must have at least one director who is ordinarily resident in Singapore. This means that the director should be a Singapore citizen, permanent resident, or someone who has been issued an Employment Pass or Entrepreneur Pass. If nominee director fee are a foreigner who’s starting a business in Singapore, you may not meet these requirements, and therefore, you will have to appoint a nominee director who satisfies these criteria.
Protection of privacy: Some companies may prefer to keep their names off the public records and documents of the company. By appointing a nominee director, the business enterprise owner can maintain their anonymity while still to be able to operate their business.
Facilitation of business operations: In some cases, the business owner will not be able to be physically present in Singapore to control the day-to-day operations of the business. By appointing a nominee director who is locally based, the business enterprise owner can ensure that their company complies with local regulations, and that operations run smoothly.
Expansion into new markets: If a business owner is seeking to expand their business into new markets, they could desire to appoint a nominee director who has understanding of the local market and can help the company navigate the local business environment.
Benefits of Using Nominee Director Services in Singapore
There are several advantages to using nominee director services in Singapore:
Compliance with local regulations: As stated earlier, every company in Singapore will need to have a minumum of one director who’s ordinarily resident in Singapore. By appointing a nominee director who satisfies these requirements, it is possible to make sure that your company complies with local regulations.
Protection of privacy: If you value your privacy and desire to keep your name off the general public records and documents of your company, a nominee director will let you achieve this.
Facilitation of business operations: When you are unable to be physically within Singapore to control your company’s operations, a nominee director can help ensure that your company complies with local laws and regulations, and that operations run smoothly.
Flexibility: Nominee director services are flexible, and you could appoint a nominee director for as long or as short a period as you need. This is often especially useful in case you are testing the waters in a new market and are not sure how long you will have 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 become a placeholder or for a brief period of time.