Singapore is among the top business destinations in the world, thanks to its stable political and economic climate, 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 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 a minumum of one director who’s ordinarily resident in Singapore. An ordinarily resident director means someone who is really a Singapore citizen, a permanent resident, or an EntrePass holder. This requirement is meant to ensure Singapore companies have a local representative who can adhere to the country’s laws and regulations and be held in charge of the company’s actions.
However, for foreign entrepreneurs who usually do not meet these criteria, it really is challenging to locate a local director to satisfy 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 does not have any actual executive power or responsibility. The nominee director is usually a resident of Singapore and is appointed to fulfill the statutory requirement of having a local director.
Why Use Singapore Nominee Director Services?
While it is possible to find a nominee director independently, it is generally recommended to utilize the services of a professional firm that focuses on providing nominee director services. Here are director fee in Singapore why:
Compliance with Local Laws and Regulations
A professional nominee director company will ensure that the nominee director appointed to your organization 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 her or his legal obligations and responsibilities.
Confidentiality and Protection of Business Interests
A professional nominee director service provider will also ensure the confidentiality and protection of one’s business interests. The nominee director appointed by the company won’t have any actual executive power or responsibility, and their role is bound to fulfilling the statutory dependence on having a local director. Therefore they will not have 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 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 is able to be appointed to your company quickly and easily. This means that you can focus on running your business and never have to worry about the legal and regulatory requirements of having a local director.
Value for Money
Finally, using a professional nominee director company can also provide value for money. The price of appointing a nominee director can vary greatly depending on the service provider, but it is normally affordable and reasonable. Moreover, the satisfaction and legal compliance that include using a professional company can be invaluable for foreign entrepreneurs that are starting a business in Singapore.
In summary, appointing a local director is 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 service provider can be an effective solution. A professional nominee director company can ensure compliance with local regulations, protect your organization interests, provide flexibility and convenience, and offer value for money. With the help of Singapore nominee director services, foreign entrepreneurs can start their business in Singapore with confidence and ease.