One of the legal requirements of starting and registering a company in Singapore is to have at least one resident director. As an investor, you cannot be in Singapore throughout, and you might not be willing to run your company publicly. You probably have other commitments or wish to maintain anonymity for your company. Also, you could be an external investor in Singapore and need someone to run the company for you. Acquiring a nominee director service is an excellent solution to such problems. Nominee director services in a company in Singapore provide competent business directors to run organizations and businesses on behalf of the owner for an agreed cost. They are also called local directors. The nominee director serves as a legal entity, permanently residing in Singapore but is a non-executive employee, acting under instructions. It is the role of the nominee director to detain shares and perform other directive duties assigned by the company owner to fulfill the legal requirements and protect the owner’s anonymity.
Role of nominee directors
The services of the nominee directory come from either a registered service or from a person. You choose to hire an independent entity to run your business or delegate this duty to a nominee director service in a company in Singapore. Although nominee directors do not have any management authority, they are held accountable for non-compliance within the company, alongside other directors. Also, the nominee director does not have a say in bank transactions, legal decisions, or any form of contracting within the company. Practically, you do not run the risk of mismanagement, embezzlement, or sabotage from your resident director.
Legal requirements for a nominee director
The legal requirement for one to be a legitimate nominee director should comply with those for a resident director in a company during the registration process. It, thus, follows that the individual must own a local address as a resident, a holder of an employment pass, and is a recognized permanent resident of Singapore. In addition, the nominee director should possess a set of business management skills, adequately skilled to convey directives without mishaps. If you cannot find an individual to meet these requirements, you can then outsource management services from a recognized company that will run directory functions on your behalf.
Hiring a competent local director.
Although local directors appear to be a puppet representation of the actual management, they should be competent and law compliant. The nominee director should file taxes in time, comply with legal company acts, have proactive communication skills, and be punctual with deadlines. Nominees with a good business management background and with reliable performance reviews would be excellent candidates. If you choose to hire a firm, review their past performance records and check if it matches the fees they charge. The nominee director service you select should be familiar with the company’s taxing, accounting, and management functions.
Investors seeking to invest in Singapore must not necessarily relocate to Singapore or physically run their companies as directors. They can appoint someone to be their face in the company while they pursue further interests.