Singapore’s efficient company setup process attracts entrepreneurs worldwide, but one regulation is mandatory: every company must have at least one local director residing in Singapore. For foreign business owners not based here, a nominee director is often the answer. This article details the role of nominee directors, when they’re required, and possible exemptions.

What Does a Nominee Director Do?

Singapore law requires every company to have at least one director who is “ordinarily resident” in Singapore—a citizen, permanent resident, or holder of a valid work pass like an EntrePass or Employment Pass. If you’re a foreign entrepreneur without a local presence, a nominee director is appointed to meet this requirement.

Nominee directors typically don’t manage your company but are legally accountable for compliance. This is why secretarial services Singapore providers offering nominees use strict contracts and deposits to manage risks.

When Is a Nominee Director Needed?

You’ll likely need a nominee director if:

• You’re launching a company from outside Singapore.
• You’re not relocating or securing a Singapore work visa.
• No team member qualifies as a Singapore resident eligible to act as a director.

Corporate secretarial services can provide a nominee director and ensure your company complies with local regulations.

Can a Foreigner Be the Local Director?

Yes, if you live in Singapore with a valid work pass, such as:

1. EntrePass: For entrepreneurs with innovative business plans.
2. Employment Pass (EP): For professionals, often used if you’re employed by your own company.

With an approved pass, you can serve as the local director, bypassing the need for a nominee. Ensure your visa is approved before assuming this role.

Exemptions to the Local Director Rule

Exemptions are specific but include:

1. Local Co-Director: A Singapore citizen or PR on your team can serve as the local director.
2. Existing Work Pass: Foreigners in Singapore with a visa permitting business activities may qualify as the local director.
3. Foreign Subsidiaries: Subsidiaries of foreign companies still require a local individual director, as the parent company’s residency doesn’t count.

Corporate secretarial services can guide you through these exemptions and maintain compliance with ACRA.

Risks of Being a Nominee Director

Nominee directors face legal responsibilities, including liability for:

• Non-compliance with annual filings
• Trading while insolvent
• Involvement in fraudulent or illegal activities

To protect nominees, secretarial services Singapore providers use detailed agreements and deposits. Avoid appointing someone unfamiliar with these obligations to prevent complications.

Why Use Corporate Secretarial Services?

For foreign entrepreneurs, company secretarial services simplify compliance by offering:

• Nominee director appointments
• Filing of required documents
• Maintenance of statutory registers
• A registered office address
• Deadline monitoring to avoid penalties

These services keep your company in good standing with ACRA, ensuring smooth operations.

Tips for Choosing a Provider

When selecting a nominee director service, consider:

• Clear Terms: The agreement should define the nominee’s role and liabilities.
• Proven Expertise: Choose providers with a strong track record for reliability.
• Control: Ensure the nominee has no access to your finances or business decisions.

Final Thoughts

Singapore’s local director requirement is a key compliance hurdle for foreign entrepreneurs. By working with trusted secretarial services Singapore providers, you can appoint a nominee director and ensure compliance, allowing you to focus on building your business in Singapore’s vibrant economy.