If you’re thinking about starting a small 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 article, we’ll have a closer look at Singapore nominee director services and how they are able to help you achieve your business goals.
What Is nominee director fee ?
A nominee director is 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 real director or owner of the company. Quite simply, the nominee director’s name appears on the official company records and documents, however 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 explanations why companies use nominee director services in Singapore:
Compliance with local regulations: Under Singapore law, every company must have at least one director who’s ordinarily resident in Singapore. Because of this the director must be a Singapore citizen, permanent resident, or anyone who has been issued an Employment Pass or Entrepreneur Pass. If you’re a foreigner who’s starting a 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 would rather keep their names off the general public records and documents of the company. By appointing a nominee director, the business enterprise owner can maintain their anonymity while still having the ability to operate their business.
Facilitation of business operations: In some cases, the business owner will not be able to be physically present in Singapore to manage the day-to-day operations of the company. By appointing a nominee director who is locally based, the business owner can ensure that their company complies with local regulations, and that operations run smoothly.
Expansion into new markets: If a business owner is looking to expand their business into new markets, they may desire 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 laws and regulations: As stated earlier, every company in Singapore will need to have a minumum of one director who’s ordinarily resident in Singapore. By appointing a nominee director who satisfies these requirements, you can ensure that your company complies with local laws and regulations.
Protection of privacy: If you’d prefer your privacy and want to keep your name off the public records and documents of one’s company, a nominee director can assist you achieve this.
Facilitation of business operations: Should you be struggling to be physically within Singapore to manage your company’s operations, a nominee director might help make sure that your company complies with local 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 a period as you need. This can be especially useful when you are testing the waters in a fresh market and are uncertain how long you will need to stay in Singapore.
Cost-effective: Nominee director services can 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 short period of time.