If you’re thinking of starting a small business in Singapore, you may have heard of the term “nominee director.” But what exactly does this mean, and how do it benefit your business? In this article, we’ll have 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 do something 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 business, but instead acts as a placeholder for the true director or owner of the business. In other words, the nominee director’s name appears on the state 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 several explanations why companies use nominee director services in Singapore:
Compliance with local regulations: Under Singapore law, every company will need to have at least one director who’s ordinarily resident in Singapore. Therefore the director should be a Singapore citizen, permanent resident, or someone who has been issued a jobs Pass or Entrepreneur Pass. If nominee director fee ‘re a foreigner who is starting a business in Singapore, you might not meet these requirements, and for that reason, you will need to appoint a nominee director who satisfies these criteria.
Protection of privacy: Some companies 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 being able to operate their business.
Facilitation of business operations: Occasionally, the business owner will 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: In case a business owner is looking to expand their business into new markets, they could want to appoint a nominee director who has knowledge of the local market and may help the business navigate the neighborhood 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 mentioned 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 will let you achieve this.
Facilitation of business operations: If you are unable to be physically present in Singapore to control your company’s operations, a nominee director might help ensure that your company complies with local 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 an interval as you need. This could be especially useful should you be testing the waters in a fresh market and are uncertain how long you need to stay in Singapore.
Cost-effective: Nominee director services could be more cost-effective than hiring a full-time director, particularly if you only need you to definitely act as a placeholder or for a short period of time.