If director fee in Singapore of starting a small business in Singapore, you could have heard of the term “nominee director.” But just what does this mean, and how can it benefit your business? In this posting, we’ll have a closer look at Singapore nominee director services and how they can help you achieve your business goals.
Exactly what is a Nominee Director?
A nominee director is really a person or a company that is appointed to act as a director of an organization on behalf of another person or entity. The nominee director does not have any executive power or authority within the company, but instead acts as a placeholder for the true director or owner of the business. Quite simply, the nominee director’s name appears on the official company records and documents, but they usually do not make any decisions or take any actions on behalf of the company.
Why Do Companies Use Nominee Director Services in Singapore?
There are several reasons 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 is ordinarily resident in Singapore. Which means that the director should be a Singapore citizen, permanent resident, or someone who has been issued a jobs Pass or Entrepreneur Pass. If you are a foreigner who is starting a business in Singapore, you may not meet these requirements, and therefore, 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 general 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: In some cases, the business owner is probably not in a position to be physically present in Singapore to control the day-to-day operations of the business. By appointing a nominee director who is 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 could desire to appoint a nominee director who has understanding of the local market and may help the company navigate the local business environment.
Benefits of Using Nominee Director Services in Singapore
There are several benefits to using nominee director services in Singapore:
Compliance with local regulations: As stated earlier, every company in Singapore must have a minumum of one director who is 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 laws and regulations.
Protection of privacy: If you value your privacy and want to keep your name off the general public records and documents of your company, a nominee director can help you achieve this.
Facilitation of business operations: Should you be unable to be physically present in Singapore to control your company’s operations, a nominee director can help ensure that your company complies with local laws and regulations, and that operations run smoothly.
Flexibility: Nominee director services are flexible, and you may appoint a nominee director for as long or as short an interval as you need. This can be especially useful if you are testing the waters in a new market and are not sure how long you need to stay in Singapore.
Cost-effective: Nominee director services could be more cost-effective than hiring a full-time director, especially if you only need someone to act as a placeholder or for a brief period of time.