Who is the Nominee Director?
A local person who puts his name on your papers and shares legal liability. At least one of your directors has to be a Singapore resident. Hire a Nominee — it’s a common and legal practice.
What is the Nominee Director Role in Singapore
When someone wants to register a company in Singapore, they need a director who is a resident of Singapore, as per regulation by Singapore’s Companies Act.
For foreigners who want to incorporate a company in Singapore but do not have any local person to be the resident director, they can hire someone to take up the role of the Nominee Director for a fee. The Nominee Director fulfils the legal and regulatory obligations of the company and does not play an active role in the company’s operations.
How can you get a Nominee Director for your company in Singapore?
Your corporate service provider will also offer a Nominee director service. Osome has various packages that include Nominee Director services for a newly incorporated company or existing one.
A Nominee Director in Singapore can not make any business decisions. But, if there’s any wrongdoing, for example, the reports are late or incorrect, he shares responsibility. That’s why you have to get an Accounting package with this service.
Does your company need a Nominee Director?
The answer is yes. A local director, meaning someone who is a resident of Singapore (either a Singapore citizen or Permanent Resident) would need to be appointed before you submit your application to register your company. However, as a foreigner, you can appoint someone to be a director and this would be your nominee director in Singapore.
If you’re a foreigner wanting to form a company in Singapore, you would most likely not be around all the time. The Singapore government needs a contact person and someone to be held responsible in case the company is found to be acting irresponsible, for example, not paying taxes, violating corporate laws, etc. Without the rule of having a Nominee Director in place, it would be easy for foreign company owners to take off and leave the company. Hence, the Nominee Directors would have to take the necessary measures to make sure their company is compliant.
Nominee directors have to carry out the same duties as regular directors. These include responsibilities like making sure that regulatory filings are submitted on time, ensuring that accounting records and annual accounts are kept up to date.
What you get choosing Osome Nominee Director Services in Singapore
Your company is compliant
The Singapore government requires that one resident director should always sit on the board of a company. That’s when a Nominee Director comes into play.
Our packages include Nominee director, Corporate Secretary, and Accounting services, all in one app. You don’t have to harmonise services from different agencies.
No deposit, no fees
Taking a deposit when hiring a Nominee Director has been the industry standard in Singapore. We decided to get rid of it. With Osome, you only pay for the service itself.
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Do I need a resident director (Nominee Director)?
Your company can have as many directors as you want, but at least one needs to be local. If you do not have someone who can play the role, hire a nominee director. For example, there can be two directors: you and the nominee. If you apply for Employment Pass from your new company, you only need the nominee service while you wait for it (about 6 months). After that, you can be the only director.
For how long do I need a resident director (Nominee Director)?
You can appoint as many directors as you need, but at least one of them has to be a resident. To comply with this law, hire a Nominee. There could be just two directors to start with, you and the Nominee.
You only need this officer for the time it takes to get an Employment Pass for yourself, which is usually about 6 months. After that, you can be the only director.
Why do I need a resident director in the first place?
According to the Companies Act, your Singaporean company can have as many directors as you want but at least one needs to be local. If you do not have any eligible candidates in mind, hire a nominee director. Thus, you won’t have to look for a local you could entrust with actually running your company. You can become a real director yourself or hire another executive from abroad.
What are the risks a Nominee Director would face?
It is legal to hire a Nominee Director according to Part IXA of Singapore’s Companies Act, so you won’t be breaking any law. You must know that a Nominee Director is forbidden from interfering with your company’s decisions. Although their powers are limited, his liability isn’t – for his company’s breaches of the law, he can be prosecuted.
What is the fee for hiring a Nominee Director in Singapore?
Our Nominee Director comes with the Company Secretary in a package. The Secretary ensures that your company meets the required standards by ensuring compliance. This package eliminates the need for additional insurances such as a deposit and allows you to keep down your costs. You only have to pay for the service itself with Osome.
Who can be a Director according to the Companies Act?
According to the Companies Act every company in Singapore needs at least one director who is responsible for managing the affairs of the company and giving it direction. This person must be a resident of Singapore, that is either a Singapore Citizen, Permanent Resident, or a foreigner on an Employment Pass or EntrePass holder.
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