Nominee Director (resident director) — a Singapore resident that acts as a Director of the company on paper without interfering with your decisions. A company set up in Singaporecan have as many directors as you want but at least one needs to be local. Hiring a nominee solves this problem. It is legal according to Part IXA of Singapore’s Companies Act and is a commonly provided service in Singapore.
Can I get rid of the Nominee?
Your Singapore company needs one resident director. If you don’t want a Nominee, you should hire a local or become on yourself. To be eligible for the resident director position, you need to be Singaporean, a Permanent Resident, or an Employment Pass holder. It is common to hire a Nominee in the beginning, then use the new company to receive an Employment Pass, then get rid of the Nominee.
What you need to know about Nominee Director
A nominee director can’t interfere with the way you run your company. He or she does not make any decisions, takes no part in the meetings or negotiations, and does not visit the office. It’s a formal position necessary to comply with the law. This status quo is supported by the special agreement the Nominee signs called a Deed of Indemnity.
Nominee Director in Singapore
ACRA keeps track of the resident directors, so you need to report his or her details to this agency. There is also a Register of Nominee Directors that each company has to maintain. It specifies the details of the Nominator (that would be you or another representative of the company) and the Director. The responsibility to maintain this register falls on the Nominee.