Singapore is really a global hub for businesses, using its stable economy, business-friendly policies, and strategic location in Southeast Asia. However, starting a small business in Singapore could be complex, especially for foreign entrepreneurs that are not familiar with the local laws and regulations. One of the common challenges faced by foreign businesses in Singapore may be the requirement to appoint an area 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 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 is appointed by a foreign company to do something as its local director in Singapore. The Nominee Director has no 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 limited to fulfilling the legal dependence on having a local director for the business.
The Nominee Director is normally appointed for just 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.
JUST HOW DO Singapore Nominee Director Services Work?
To engage Singapore Nominee Director Services, a foreign company must engage the services of a professional service provider that provides Nominee Director services. The service provider will appoint a Nominee Director who meets the requirements of the Singapore Companies Act. The Nominee Director will then sign a Director’s Consent Letter, which confirms that the Nominee Director is willing 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 with any decision-making processes, and the foreign company’s director will continue steadily to manage the business’s affairs remotely.
The Nominee Director’s role is to fulfill the legal dependence on having an area resident director for the company. The Nominee Director will provide 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 set term, and the company provides 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 few of the key benefits include:
Compliance with Singapore laws and regulations
Beneath 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 legal requirement, which is essential for the company’s operations in Singapore.
director fee in Singapore for foreign directors
Some foreign directors might not desire to be publicly identified as the director of the Singapore company. Engaging a Nominee Director allows the foreign director to stay anonymous while fulfilling the legal requirement of having a local director.
Faster company incorporation
Engaging a Nominee Director can help speed up the procedure of incorporating a Singapore company. Because the Nominee Director meets the residency requirement, the foreign company can complete the registration process quickly and start its operations in Singapore without any delay.
Flexibility in managing the business
Engaging a Nominee Director provides foreign directors with more flexibility in managing their Singapore company. Because the Nominee Director doesn’t have any involvement in the business’s day-to-day operations, the foreign director can manage the company’s affairs remotely without the disruption