Singapore is really a global hub for businesses, using 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 local laws and regulations. One of many common challenges faced by foreign businesses in Singapore may be the requirement to appoint a local director. This is where Singapore Nominee Director Services enter into play.
In this article, we will discuss what Singapore Nominee Director Services are, how they work, and the huge benefits they are able to bring to your business.
What Are Singapore Nominee Director Services?
A Singapore Nominee Director can be an individual or perhaps a corporate entity that is appointed by way of a foreign company to do something as its local director in Singapore. The Nominee Director does not have any involvement in the day-to-day operations of the business, and the foreign company retains full control over its business operations. The Nominee Director’s role is limited to fulfilling the legal dependence on having an area director for the business.
The Nominee Director is usually 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 wish to be publicly identified as the director of the Singapore company.
How Do Singapore Nominee Director Services Work?
To engage Singapore Nominee Director Services, a foreign company must engage the services of a professional service provider that offers 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 local director of the company.
The foreign company will retain full control on the management and operations of the company. The Nominee Director will not be involved with 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 an area resident director for the company. The Nominee Director will provide their name and residential address to the Accounting and Corporate Regulatory Authority (ACRA) and other government agencies. The Nominee Director will also sign any legal documents required by the Singapore government, like the Annual General Meeting (AGM) resolutions and financial statements.
The Nominee Director’s appointment is usually for a fixed term, and the company provides renewal services if the foreign company requires the Nominee Director’s services for a longer time.
Great things about 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 regulations
Under the Singapore Companies Act, every Singapore company will need to have at least one local resident director. Engaging Singapore Nominee Director Services ensures that the foreign company complies with this legal requirement, that is essential for the business’s operations in Singapore.
Anonymity for foreign directors
Some foreign directors might not wish to be publicly identified as the director of the Singapore company. Engaging a Nominee Director allows the foreign director to remain anonymous while fulfilling the legal requirement of having a local director.
Faster company incorporation
Engaging a Nominee Director might help speed up the procedure of incorporating a Singapore company. Because nominee director service in Singapore 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 business
Engaging a Nominee Director provides foreign directors with an increase of flexibility in managing their Singapore company. Since 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