Singapore is one of the top business destinations on the planet, because of its stable political and financial state, 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 is the requirement to appoint an area 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.
Exactly what is a Nominee Director?
In Singapore, every company will need to 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 make certain Singapore companies have a local representative who can adhere to the country’s regulations and be held in charge of the company’s actions.
However, for nominee director services in Singapore who do not meet these criteria, it really is challenging to locate a local director to satisfy this requirement. That’s where a nominee director comes in. A nominee director is really a person who is appointed to act as a director of an organization 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 dependence on having an area director.
Why Use Singapore Nominee Director Services?
While it is possible to find a nominee director independently, it is generally recommended to use the services of a professional firm that specializes in providing nominee director services. Here are a few reasons why:
Compliance with Local Regulations
A professional nominee director service provider will make sure 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, isn’t disqualified from acting as a director, and knows his or her legal obligations and responsibilities.
Confidentiality and Protection of Business Interests
A specialist nominee director service provider will also ensure the confidentiality and protection of your business interests. The nominee director appointed by the company will not have any actual executive power or responsibility, and their role is bound to fulfilling the statutory requirement of having a local director. Because of this 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
Using a professional nominee director company is also more flexible and convenient than getting a nominee director independently. The service provider will have a pool of qualified and experienced nominee directors who is able to be appointed to your organization quickly and easily. Because of this you can focus on running your business without having to be worried about the legal and regulatory requirements of experiencing a local director.
Value for Money
Finally, utilizing a professional nominee director company can also provide value for money. The cost of appointing a nominee director can vary greatly depending on the company, but it is generally affordable and reasonable. Moreover, the peace of mind and legal compliance that include using a professional company could be invaluable for foreign entrepreneurs who are starting a small business in Singapore.
Conclusion
In summary, appointing a local director is a statutory requirement of companies in Singapore. For foreign entrepreneurs who usually do not meet the criteria to be an ordinarily resident director, using a nominee director service provider is definitely an effective solution. A professional 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. Through the help of Singapore nominee director services, foreign entrepreneurs can start their business in Singapore confidently and ease.