Singapore is one of the top business destinations on earth, because of its stable political and financial state, business-friendly policies, and strategic location. However, starting a small business in Singapore is not always straightforward, especially for foreigners who may face several legal and regulatory hurdles. One such challenge is the requirement to appoint a local director for Singapore companies. In this posting, we shall discuss the role of a nominee director and how Singapore nominee director services can help foreign entrepreneurs overcome this obstacle.
What is a Nominee Director?
In Singapore, every company will need to have at least one director who’s ordinarily resident in Singapore. An ordinarily resident director means someone who is a Singapore citizen, a permanent resident, or an EntrePass holder. This requirement is intended to make certain Singapore companies have an area representative who can comply with the country’s laws and regulations and be held accountable for the company’s actions.
However, for foreign entrepreneurs who usually do not meet these criteria, it might be challenging to find a local director to satisfy this requirement. This is where a nominee director comes in. A nominee director is really a person who is appointed to act as a director of an organization but does not have any actual executive power or responsibility. The nominee director is generally a resident of Singapore and is appointed to fulfill the statutory requirement of having a local director.
While it can be done to find a nominee director independently, it is generally recommended to use the services of a specialist firm that focuses on providing nominee director services. Here are a few reasons why:
Compliance with Local Laws and Regulations
A professional nominee director company will make sure that the nominee director appointed to your organization is fully compliant with all local laws and regulations. This includes ensuring that the nominee director meets certain requirements for being an ordinarily resident director, is not disqualified from acting as a director, and is aware of his / her legal obligations and responsibilities.
Confidentiality and Protection of Business Interests
A specialist nominee director service provider may also ensure the confidentiality and protection of your business interests. The nominee director appointed by the service provider won’t have any actual executive power or responsibility, and their role is bound to fulfilling the statutory dependence on having a local director. This means that they will not get access to your company’s sensitive information or be able to make any decisions which could affect your business.
Flexibility and Convenience
Using a professional nominee director company can be more flexible and convenient than getting a nominee director independently. The service provider will have a pool of qualified and experienced nominee directors who is able to be appointed to your company quickly and easily. Therefore you can focus on running your business and never have to worry about the legal and regulatory requirements of experiencing a local director.
Value for Money
Finally, using a professional nominee director service provider can also provide value for money. The price of appointing a nominee director can vary greatly depending on the company, but it is generally affordable and reasonable. Moreover, the satisfaction and legal compliance that come with using a professional company can be invaluable for foreign entrepreneurs who are starting a business in Singapore.
In summary, appointing a local director is really a statutory requirement of companies in Singapore. For foreign entrepreneurs who do not meet the criteria to be an ordinarily resident director, utilizing a nominee director company can be an effective solution. A specialist nominee director service provider can ensure compliance with local laws and regulations, protect your organization interests, provide flexibility and convenience, and provide value for money. Through the help of Singapore nominee director services, foreign entrepreneurs can start their business in Singapore with confidence and ease.