If you’re planning to set up a business in Singapore, you’ve probably heard about the option of appointing a nominee director. So, Why is it so important for foreigners who are planning to set up a company in Singapore? Well, We’ve got you covered!
What is a Nominee Director? Nominee director is an individual who is appointed to act as a director of the company on behalf of another individual or entity.
For all foreigners establishing businesses in Singapore, having a nominee director is essential due to regulations from the Accounting & Corporate Regulatory Authority (ACRA).
When incorporating a company in Singapore, there are some requirements that need to be met. The company must have:-
Under the provisions of the Singapore Companies Act, it is important for every company to have at least one director who is a resident of Singapore. Although a company can appoint multiple directors, ACRA will prohibit registration if none of them are local residents.
This is where nominee directors play a crucial role.They’re appointed to meet legal requirements without actively managing the company. Since a resident director must be a Singapore citizen or Permanent Resident, having a Nominee Director will help to fulfill these requirements and thus allow the foreign entrepreneurs to start a business in Singapore.
The criterias required for a nominee director are as follows:
Despite being a part of a requirement for incorporating your business, a Nominee director also plays a crucial role in your business. Their primary responsibility is to ensure that your company is in compliance with Singapore’s laws and regulations.
They handle important tasks such as:
However, you can be rest assured as the Nominee Director will not have any operational or functional role of your company and that you can limit a nominee’s ability to influence your company through a written agreement with them.
Tips: Most nominee directors won’t get involved in your business activities. No signing of operational contracts between suppliers or customers. Most assist with your bank account opening, but the banks know they are nominated and not a decision-making director.
Engaging with nominee director services providers will present various advantages and in fact, if you are a foreigner in Singapore, you cannot even incorporate a company without a local director.
Some of the advantages of using Nominee Director Services would be:-
There are 2 types of Nominee Director services in Singapore. They are:
If you are a foreigner who want to avoid personal income tax or if you hold a high risk passport, you should go for a LTND services. Whereas, if you are incorporating new business in Singapore and need Nominee Director services for incorporation purposes only, you should go for a STND service.
Tips: These services may vary among providers, hence it’s advisable to reach out to a representative beforehand.
Now that you’re familiar with the concept of employing a nominee director in Singapore, let’s get you to incorporate your company in 3 Simple Steps!
In 3 easy steps, you can get a reliable and professional Nominee Director in Singapore already! So, what’s you waiting for? Alternatively, you can also fill up the form on this website and our consultants will attend to you immediately.
Tip: Paul Hype Page offers nominee director services for statutory compliance only. So, rest assured, our nominee director will not be involved in any management, financial, or operational matters of the company.
The distinction between a nominee shareholder and a nominee director can often be a source of confusion. A nominee shareholder is an individual who allows you to use their name as the registered owner of shares in your company. However, they hold these shares on your behalf, and you retain all rights and benefits associated with them, such as selling shares, receiving dividends, and voting at general meetings.
On the other hand, a nominee director is someone who acts as a director of the company on behalf of the company’s owner. While the nominee director and nominee shareholder can sometimes be the same person, the nominee director’s role is to represent the owner’s interests and follow their instructions. They do not have control over the company but carry out their duties as directed by the ultimate company owner.
Come down to our office or get in touch virtually for an incorporation assessment to establish your Singapore company today.