Understanding Singapore Nominee Director Services: What They Are and How They Benefit YOUR ORGANIZATION
If you’re thinking of starting a small business in Singapore, you may have heard of the word “nominee director.” But just what does this mean, and how do it benefit your organization? On this page, 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 is appointed to do something as a director of a company on behalf of someone else or entity. The nominee director does not have any executive power or authority within the company, but rather acts as a placeholder for the real director or owner of the company. Basically, 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 several explanations why companies use nominee director services in Singapore:
Compliance with local regulations: Under Singapore law, every company will need to have a minumum of one director who’s ordinarily resident in Singapore. Therefore the director must be a Singapore citizen, permanent resident, or someone who has been issued a jobs Pass or Entrepreneur Pass. If you’re a foreigner who’s starting a small business in Singapore, you might not meet these requirements, and therefore, you will need to appoint a nominee director who satisfies these criteria.
Protection of privacy: Some business owners may prefer to keep their names off the public records and documents of the business. By appointing a nominee director, the business owner can maintain their anonymity while still having the ability to operate their business.
Facilitation of business operations: Occasionally, the business owner is probably not able to be physically present in Singapore to control the day-to-day operations of the business. By appointing a nominee director who’s locally based, the business enterprise 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 may want to appoint a nominee director who has knowledge 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 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, it is possible to make sure that your company complies with local regulations.
Protection of privacy: If you’d prefer your privacy and want to keep your name off the public records and documents of your company, a nominee director can assist you achieve this.
Facilitation of business operations: If you are struggling to be physically present in Singapore to manage 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 will appoint a nominee director 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 new market and are uncertain how long you will have 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 brief period of time.