Singapore is 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, 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 may be the requirement to appoint a local director. That’s where Singapore Nominee Director Services come into play.
In this article, we shall discuss what Singapore Nominee Director Services are, how they work, and the benefits they are able to bring to your organization.
WHAT EXACTLY ARE Singapore Nominee Director Services?
A Singapore Nominee Director can be an individual or a corporate entity that is appointed by 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 company, and the foreign company retains full control over its business operations. The Nominee Director’s role is bound 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 does not have a local resident director, or the foreign company’s director does not wish to be publicly identified 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 specialist 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 willing to act as the local director of the company.
The foreign company will retain full control over 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 is to fulfill the legal dependence on having a local resident director for the company. nominee director services provides their name and residential address to the Accounting and Corporate Regulatory Authority (ACRA) along with 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 usually for a set term, and the company will provide 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 several benefits to foreign businesses which are starting their operations in Singapore. Some of the key benefits include:
Compliance with Singapore laws and 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 particular legal requirement, that is essential for the business’s operations in Singapore.
Anonymity for foreign directors
Some foreign directors may not want 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 an area director.
Faster company incorporation
Engaging a Nominee Director can help speed up the process 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 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 company’s day-to-day operations, the foreign director can manage the business’s affairs remotely without the disruption