The role of a director is vital to any company and the Singapore government requires each company to have one. According to the Company Act, the director should have the status of a Singapore citizen. However, in the case of foreign companies, it’s not always possible to have a local director- this is where a nominee director comes in.
Nominee director services Singapore are critical to ensure you’re entrusting your company with a capable and reliable person regardless of its ownership status.
Who is a nominee director?
A nominee director is a person hired to act as a local director for companies owned by foreigners in Singapore. It’s hard to hold a foreigner accountable and they may flee and abandon the company in case of any illegal activity. Thus, this position helps regulate foreign company’s activities to protect the government and citizens.
Is there a risk of hiring a nominee director?
Many foreign investors like to set their businesses in Singapore to benefit from legal and tax systems. The fact that these investors aren’t Singapore residents, they’re required to hire a nominee director.
Hiring a nominee director has the potential of security risks as the nominated director has great access to the company’s information. They may negatively use this information to disadvantage your business. In this regard, it’s critical to hire a credible nominee director services Singapore.
Benefits of having a nominee director
• Compliance with legal requirements
Hiring a nominee director is an inevitable decision for any company owned by a foreigner. Registration of a company in Singapore requires at least one resident director and it’s impossible to register without meeting this requirement.
• It gives you peace of mind.
A nominee director runs most of the company’s activities, relieving you from worries about anything going wrong in the company. Nominee director services Singapore perform the director duties with utmost honesty and integrity.
• Access to extensive knowledge
A nominee director is an excellent resource to your company as they’re knowledgeable about laws governing the operation of companies. In addition, they’ll ensure your company remains compliant by filing Accounting and Corporate Regulatory Authority (ACRA) and Inland Revenue Authority of Singapore (IRAS) documents on time.
• Helps in Entre-Pass application visa
This visa allows a foreigner owning a private company registered with the Accounting Corporate Regulatory Authority of Singapore to relocate to the country and run their business. Hiring a nominee director facilitates the formation of a private limited company and consequently approval of an Entre-Pass visa.
• Provide proof of the company’s local address
All companies located in Singapore need a local registered address and a nominee director makes this possible.
Why use nominee director services?
• Nominee services in Singapore help maintain the owner’s identity anonymous and protect disclosure of ownership in case of a public inquiry.
• Acts as a representative when the personal presence of the company director is required but they can’t travel.
• Helps qualify a company for registration by compiling to set rules of membership.
• They ensure the company’s compliance by filing all required documents correctly and on time.
Conclusion
A nominee director is essential to any form of business in Singapore. They help ease company registration, responsibilities, and shareholder risks. Other than legal compliance to the Company Act for any foreigner wishing to establish a company in Singapore, a nominee director helps on some managerial roles when the main director is away. You should hire nominee director services in Singapore to enjoy these benefits.
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