If you’re thinking of starting a business in Singapore, you may have heard of the term “nominee director.” But just what does this mean, and how do it benefit your business? In this post, 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 really 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 does not have any executive power or authority within the business, but rather acts as a placeholder for the real director or owner of the company. In other words, the nominee director’s name appears on the state company records and documents, but they usually 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 reasons why companies use nominee director services in Singapore:
Compliance with local laws and regulations: Under Singapore law, every company will need to have at least one director who is ordinarily resident in Singapore. Because of this the director should be a Singapore citizen, permanent resident, or anyone who has been issued a jobs Pass or Entrepreneur Pass. If you’re a foreigner who is starting a small business in Singapore, you might not meet these requirements, and therefore, you will have 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 to be able to operate their business.
Facilitation of business operations: In some instances, 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 ensure that their company complies with local 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 can help the company navigate the neighborhood business environment.
Great things about Using Nominee Director Services in Singapore
There are several advantages to using nominee director services in Singapore :
Compliance with local laws and regulations: As stated 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 laws and regulations.
Protection of privacy: If you value your privacy and desire to keep your name off the public records and documents of your company, a nominee director can help you achieve this.
Facilitation of business operations: For anyone who is unable to be physically present in Singapore to manage your company’s operations, a nominee director might help make sure that your company complies with local laws and regulations, and that operations run smoothly.
Flexibility: Nominee director services are flexible, and you can appoint a nominee director for as long or as short an interval as you need. This is often especially useful if you are testing the waters in a new market and are not sure 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 someone to act as a placeholder or for a brief period of time.