If you’re thinking of starting a small business in Singapore, you might have heard of the term “nominee director.” But what exactly does this mean, and how can it benefit your organization? In this article, we’ll take a closer look at Singapore nominee director services and how they are able to help you reach your business goals.
Exactly what is a Nominee Director?
A nominee director is 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 instead acts as a placeholder for the real director or owner of the company. In other words, the nominee director’s name appears on the official company records and documents, but they 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 nominee director service in Singapore why companies use nominee director services in Singapore:
Compliance with local regulations: Under Singapore law, every company must have a minumum of one director who’s ordinarily resident in Singapore. Which means that the director must be a Singapore citizen, permanent resident, or anyone who has been issued a jobs Pass or Entrepreneur Pass. If you are a foreigner who is starting a small business in Singapore, you might not meet these requirements, and for that reason, you will have to appoint a nominee director who satisfies these criteria.
Protection of privacy: Some companies may would rather keep their names off the public records and documents of the business. By appointing a nominee director, the business enterprise owner can maintain their anonymity while still having the ability to operate their business.
Facilitation of business operations: Occasionally, the business owner may not be in a position to be physically within Singapore to manage the day-to-day operations of the business. By appointing a nominee director who’s locally based, the business owner can ensure that their company complies with local laws and regulations, and that operations run smoothly.
Expansion into new markets: In case a business owner is looking to expand their business into new markets, they may desire to appoint a nominee director who has understanding of the local market and will help the company navigate the local 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 must 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 want to keep your name off the public records and documents of one’s company, a nominee director can help you achieve this.
Facilitation of business operations: In case you are struggling to be physically present in Singapore to control your company’s operations, a nominee director might help ensure that your company complies with local laws and regulations, and that operations run smoothly.
Flexibility: Nominee director services are flexible, and you will appoint a nominee director for for as long or as short an interval as you need. This could be especially useful for anyone who is testing the waters in a fresh market and are uncertain how long you will 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 become a placeholder or for a short period of time.