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 business in Singapore isn’t always straightforward, specifically for foreigners who may face several legal and regulatory hurdles. One particular challenge may be the requirement to appoint a local director for Singapore companies. In the following paragraphs, 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 must have at least one director who’s ordinarily resident in Singapore. An ordinarily resident director is defined as 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 in charge of the company’s actions.
However, for foreign entrepreneurs who do not meet these criteria, it is usually challenging to locate a local director to fulfill this requirement. That’s where a nominee director will come in. A nominee director is a person who is appointed to act as a director of a company but doesn’t have any actual executive power or responsibility. The nominee director is usually a resident of Singapore and is appointed to satisfy the statutory requirement of having a local director.
Why Use Singapore Nominee Director Services?
While it is possible to locate a nominee director independently, it is generally recommended to utilize the services of a specialist firm that specializes in providing nominee director services. Here are some reasons why:
Compliance with Local Laws and Regulations
A professional nominee director service provider will ensure that the nominee director appointed to your company 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, isn’t disqualified from acting as a director, and knows her or his legal obligations and responsibilities.
Confidentiality and Protection of Business Interests
A professional nominee director company may also ensure the confidentiality and protection of one’s business interests. The nominee director appointed by the service provider won’t have any actual executive power or responsibility, and their role is limited to fulfilling the statutory requirement of having an area director. Which means that they will not have access to your company’s sensitive information or be able to make any decisions that could affect your business.
Flexibility and Convenience
Utilizing a professional nominee director company can be more flexible and convenient than finding a nominee director independently. The company will have a pool of qualified and experienced nominee directors who is able to be appointed to your company quickly and easily. nominee director fee means that you can focus on running your business and never have to be worried about the legal and regulatory requirements of having a local director.
Value for Money
Finally, utilizing a professional nominee director service provider can also provide affordability. The cost of appointing a nominee director can vary greatly depending on the company, but it is normally affordable and reasonable. Moreover, the peace of mind and legal compliance that come with using a professional service provider can be invaluable for foreign entrepreneurs that are starting a business in Singapore.
In summary, appointing an area director is really a statutory requirement for 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 business interests, provide flexibility and convenience, and provide value for money. By using Singapore nominee director services, foreign entrepreneurs can start their business in Singapore confidently and ease.