If you're thinking of starting a small business in Singapore, you could have heard of the term "nominee director." But what exactly does this mean, and how do it benefit your business? In this posting, we'll take a closer look at Singapore nominee director services and how they can help you achieve your business goals.
Exactly what is a Nominee Director?
A nominee director is really a person or perhaps a company that's appointed to act as a director of a company on behalf of someone else or entity. The nominee director doesn't have any executive power or authority within the business, but rather acts as a placeholder for the true director or owner of the company. In other words, the nominee director's name appears on the official company records and documents, but they usually do not make any decisions or take any actions on behalf of the company.
Why Do nominee director fee Use Nominee Director Services in Singapore?
There are several reasons why companies use nominee director services in Singapore:
Compliance with local regulations: Under Singapore law, every company must have a minumum of one director who's ordinarily resident in Singapore. This means that the director must be a Singapore citizen, permanent resident, or anyone who has been issued an Employment Pass or Entrepreneur Pass. If you're a foreigner who is starting a small business in Singapore, you might not meet these requirements, and therefore, you will need to appoint a nominee director who satisfies these criteria.
Protection of privacy: Some business owners may prefer to keep their names off the general public records and documents of the business. By appointing a nominee director, the business owner can maintain their anonymity while still having the capacity to operate their business.
Facilitation of business operations: Sometimes, the business owner will not be in a position to be physically within Singapore to manage the day-to-day operations of the business. By appointing a nominee director who is locally based, the business enterprise owner can make sure that their company complies with local regulations, and that operations run smoothly.
Expansion into new markets: In case a business owner is seeking to expand their business into new markets, they could desire to appoint a nominee director who has knowledge of the local market and will help the company navigate the neighborhood business environment.
Great things about Using Nominee Director Services in Singapore
There are several benefits to using nominee director services in Singapore:
Compliance with local regulations: As stated earlier, every company in Singapore will need to have at least one director who's ordinarily resident in Singapore. By appointing a nominee director who satisfies these requirements, you can ensure that your company complies with local regulations.
Protection of privacy: If you'd prefer your privacy and desire to keep your name off the general public records and documents of one's company, a nominee director may help you achieve this.
Facilitation of business operations: If you are struggling to be physically present in Singapore to manage your company's operations, a nominee director can help make sure that your company complies with local regulations, and that operations run smoothly.
Flexibility: Nominee director services are flexible, and you can appoint a nominee director for for as long or as short an interval as you need. This is often especially useful if you are testing the waters in a fresh market and are not sure how long you will need to stay in Singapore.
Cost-effective: Nominee director services could be more cost-effective than hiring a full-time director, especially if you only need you to definitely act as a placeholder or for a short period of time.