director fee in Singapore is probably the top business destinations on the globe, thanks to its stable political and financial state, business-friendly policies, and strategic location. However, starting a business in Singapore is not always straightforward, specifically for foreigners who may face several legal and regulatory hurdles. One such challenge is the requirement to appoint an area director for Singapore companies. In this article, we shall 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 must have at least 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 ensure that Singapore companies have a local representative who can adhere to the country’s laws and regulations and be held accountable for the company’s actions.
However, for foreign entrepreneurs who do not meet these criteria, it might be challenging to locate a local director to fulfill this requirement. This is where a nominee director comes in. A nominee director is a one who is appointed to do something 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 satisfy the statutory dependence on having an area director.
Why Use Singapore Nominee Director Services?
While it can be done to locate a nominee director independently, it is generally recommended to utilize the services of a specialist firm that focuses on providing nominee director services. Below are a few reasons why:
Compliance with Local Regulations
A specialist nominee director company will make sure that the nominee director appointed to your company is fully compliant with all local laws and regulations. This includes making certain the nominee director meets certain requirements to be an ordinarily resident director, is not disqualified from acting as a director, and knows her or his legal obligations and responsibilities.
Confidentiality and Protection of Business Interests
A specialist nominee director service provider may also ensure the confidentiality and protection of your business interests. The nominee director appointed by the service provider will not have any actual executive power or responsibility, and their role is limited to fulfilling the statutory dependence on having a local director. Therefore 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 service provider can be more flexible and convenient than finding 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 company 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, using a professional nominee director company can also provide affordability. The cost of appointing a nominee director may vary depending on the service provider, but it is generally affordable and reasonable. Moreover, the reassurance and legal compliance that include using a professional company could be invaluable for foreign entrepreneurs that are starting a small business in Singapore.
In summary, appointing a local director is really a statutory requirement of companies in Singapore. For foreign entrepreneurs who usually do not meet the criteria for being an ordinarily resident director, using a nominee director company is definitely an effective solution. A specialist nominee director service provider can ensure compliance with local regulations, protect your organization interests, provide flexibility and convenience, and offer value for money. By making use of Singapore nominee director services, foreign entrepreneurs can begin their business in Singapore confidently and ease.