The Role of Nominee Director in Incorporating Company in Singapore
Singapore has outstandingly gained a positive reputation in being a pro-business country in the South East Asia. Thus, many foreigners all over the world are attracted to incorporate their company in this country. However, some might have a difficulty in meeting all requirements asked by the jurisdiction. The most problematic requirement is regarding to the nationality of the director because the absence of a local director can be a challenge in meeting other requirements such as opening a bank account or dealing with taxation.
To overcome that problem, there comes Singapore nominee director service. As the name suggests, the service helps foreign investors to setup company in Singapore. A nominee director is a person who functions as the director of a company for meeting the legal requirement to own a local director. Due to the functions, a nominee director acts passively and lacks of some power in the company.
There are, at least, 2 benefits of engaging a nominee director from a Singapore nominee director service:
#1. Meeting statutory requirements about residency
Singapore requires companies to have a local director who has become a resident in the country for a certain period of time. For foreigners who want to manage their business on their own from their homeland, a nominee director can be an option.
#2.More Power in the Company
Although a nominee director is physically the head of the company, his position in the company is limited. The director is just in charge of signing legal documents for the company. The only person who has the power and responsibilities for making decisions related to the corporate management is the investor, except if the investor gives him a state or condition to do so on behalf of the company.
To be qualified as a nominee director, a person has to meet these 3 criteria:
- Singapore Citizen
- Singapore Permanent Resident
- Singapore Employment Pass/EntrePass Holder with a residential address in Singapore
In conclusion, Singapore nominee director service does give benefits to the investor and the company to achieve the desired individual and corporate goals.
Nominee Director Services in Singapore.