Singapore is a global hub for businesses, using its stable economy, business-friendly policies, and strategic location in Southeast Asia. However, starting a small business in Singapore can be complex, specifically for foreign entrepreneurs that are not familiar with the neighborhood laws and regulations. One of many common challenges faced by foreign businesses in Singapore is the requirement to appoint an area director. This is where Singapore Nominee Director Services enter into play.
In this article, we shall discuss what Singapore Nominee Director Services are, how they work, and the huge benefits they are able to bring to your organization.
What Are Singapore Nominee Director Services?
A Singapore Nominee Director is an individual or perhaps a corporate entity that’s appointed by way of a foreign company to act 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. nominee director service in Singapore is bound to fulfilling the legal requirement of having an area director for the company.
The Nominee Director is usually appointed for just one of two reasons: either the foreign company does not have a local resident director, or the foreign company’s director does not desire to be publicly defined as the director of the Singapore company.
JUST 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 then appoint a Nominee Director who meets the requirements of the Singapore Companies Act. The Nominee Director will sign a Director’s Consent Letter, which confirms that the Nominee Director is ready to act as the local 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 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 requirement of 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) and other government agencies. The Nominee Director will 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.
Great things about Singapore Nominee Director Services
Singapore Nominee Director Services offer many perks to foreign businesses which are starting their operations in Singapore. Some of the key benefits include:
Compliance with Singapore laws and regulations
Beneath the Singapore Companies Act, every Singapore company will need to have a minumum of one local resident director. Engaging Singapore Nominee Director Services means that the foreign company complies with this legal requirement, which is essential for the company’s operations in Singapore.
Anonymity for foreign directors
Some foreign directors may not wish 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 procedure 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 the delay.
Flexibility in managing the company
Engaging a Nominee Director provides foreign directors with more flexibility in managing their Singapore company. Since the Nominee Director does not have any involvement in the business’s day-to-day operations, the foreign director can manage the company’s affairs remotely without the disruption
