Singapore is one of the top business destinations on the planet, because of its stable political and economic climate, business-friendly policies, and strategic location. However, starting a small business in Singapore isn't always straightforward, specifically for foreigners who may face several legal and regulatory hurdles. One such challenge is the requirement to appoint a local director for Singapore companies. On this page, we will 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 a minumum of one director who is 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 ensure Singapore companies have a local 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 really is challenging to locate a local director to satisfy this requirement. This is where a nominee director will come in. A nominee director is a person who is appointed to do something as a director of a company but does not have any actual executive power or responsibility. The nominee director is generally a resident of Singapore and is appointed to satisfy the statutory dependence on having an area 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 several reasons why:
Compliance with Local 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 making certain 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 company will 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 limited to fulfilling the statutory dependence on having a local director. Therefore they will not have access to your company's sensitive information or have the ability to make any decisions that could affect your business.
Flexibility and Convenience
Utilizing a professional nominee director service provider is also more flexible and convenient than finding a nominee director independently. The service provider could have a pool of qualified and experienced nominee directors who can be appointed to your organization quickly and easily. Because of this you can concentrate 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 company can also provide affordability. The cost of appointing a nominee director may vary depending on the service provider, but it is normally affordable and reasonable. Moreover, the satisfaction and legal compliance that include using a professional service provider can be invaluable for foreign entrepreneurs that are starting a small business in Singapore.
In summary, appointing a local director is really a statutory requirement for companies in Singapore. For foreign entrepreneurs who do not meet the criteria for being an ordinarily resident director, using a nominee director company can be an effective solution. A professional nominee director service provider can ensure compliance with local regulations, protect your business interests, provide flexibility and convenience, and provide value for money. By using nominee director service in Singapore , foreign entrepreneurs can begin their business in Singapore confidently and ease.