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 who are not familiar with the neighborhood laws and regulations. One of the common challenges faced by foreign businesses in Singapore may be the requirement to appoint an area director. This is where Singapore Nominee Director Services enter into play.
In this article, we shall discuss what Singapore Nominee Director Services are, how they work, and the benefits they are able to bring to your organization.
WHAT EXACTLY ARE Singapore Nominee Director Services?
A Singapore Nominee Director can be an individual or perhaps a corporate entity that is appointed by way of a foreign company to act as its local director in Singapore. The Nominee Director does not have any 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 bound to fulfilling the legal dependence on having a local director for the business.
The Nominee Director is usually appointed for just one of two reasons: either the foreign company doesn’t have a local resident director, or the foreign company’s director does not desire 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 offers Nominee Director services. The company will then 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 willing to act as the neighborhood director of the business.
The foreign company will retain full control on the management and operations of the company. The Nominee Director will never be involved with any decision-making processes, and the foreign company’s director will continue to manage the business’s affairs remotely.
The Nominee Director’s role is to fulfill the legal requirement of having an area resident director for the company. The Nominee Director provides their name and residential address to the Accounting and Corporate Regulatory Authority (ACRA) and other government agencies. The Nominee Director may 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 will provide renewal services if the foreign company requires the Nominee Director’s services for a longer period.
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 must have a minumum of one local resident director. Engaging Singapore Nominee Director Services ensures that the foreign company complies with this particular legal requirement, which is essential for the business’s operations in Singapore.
Anonymity for foreign directors
Some foreign directors may not wish to be publicly identified as the director of the Singapore company. Engaging a Nominee Director allows the foreign director to remain anonymous while fulfilling the legal requirement of having a local director.
Engaging a Nominee Director might 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 begin its operations in Singapore without any delay.
Flexibility in managing the company
Engaging a Nominee Director provides foreign directors with an increase of flexibility in managing their Singapore company. Because the Nominee Director does not have any involvement in the business’s day-to-day operations, the foreign director can manage the company’s affairs remotely without any disruption