Singapore is really a global hub for businesses, with its stable economy, business-friendly policies, and strategic location in Southeast Asia. However, starting a business in Singapore can be complex, especially 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. This is where Singapore Nominee Director Services enter into play.
In this article, we will discuss what Singapore Nominee Director Services are, how they work, and the huge benefits they can bring to your organization.
WHAT EXACTLY ARE Singapore Nominee Director Services?
A Singapore Nominee Director can be an individual or a corporate entity that’s appointed by way of a foreign company to act as its local director in Singapore. nominee director services in Singapore has no involvement in the day-to-day operations of the business, and the foreign company retains full control over its business operations. The Nominee Director’s role is bound to fulfilling the legal requirement of having a local director for the business.
The Nominee Director is normally appointed for one of two reasons: either the foreign company doesn’t have an area resident director, or the foreign company’s director will not wish to be publicly defined as the director of the Singapore company.
How Do Singapore Nominee Director Services Work?
To activate Singapore Nominee Director Services, a foreign company must engage the services of a specialist service provider that offers Nominee Director services. The company will appoint a Nominee Director who meets certain requirements of the Singapore Companies Act. The Nominee Director will sign a Director’s Consent Letter, which confirms that the Nominee Director is ready to act as the local director of the business.
The foreign company will retain full control on the management and operations of the business. The Nominee Director will not be involved in any decision-making processes, and the foreign company’s director will continue to manage the company’s affairs remotely.
The Nominee Director’s role is to fulfill the legal dependence on having an area resident director for the business. The Nominee Director 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, including the Annual General Meeting (AGM) resolutions and financial statements.
The Nominee Director’s appointment is normally for a fixed term, and the service provider 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 many perks to foreign businesses which are starting their operations in Singapore. A number 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 means that the foreign company complies with this particular legal requirement, which is essential for the company’s operations in Singapore.
Anonymity for foreign directors
Some foreign directors might not desire to be publicly defined as the director of the Singapore company. Engaging a Nominee Director allows the foreign director to stay anonymous while fulfilling the legal dependence on having an area director.
Faster company incorporation
Engaging a Nominee Director might help speed up the process of incorporating a Singapore company. Since 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. Because the Nominee Director doesn’t have any involvement in the company’s day-to-day operations, the foreign director can manage the company’s affairs remotely without any disruption