Singapore’s Companies Act makes it mandatory for all Singaporean incorporated companies to have at least one resident director on their company’s board right from the date of incorporation. Furthermore, even after companies have been incorporated, they must continue to have at least one resident director on their company’s board every time.
A local resident director is someone who is physically residing in Singapore and who is still qualified to hold a directorship role. Kindly note that the resident status of such an individual must be validated by at least proof of a local residential address.
In Singapore, Permanent Resident, Singapore Citizen, or an individual who holds the EntrePass work visa can hold the local ordinarily resident director role at the time of the company incorporation.
Individuals who hold An Employment Pass (EP) visa and have a local residential address can become the director of a Singaporean company only after the new company has been incorporated and has opened a corporate bank account. The primary reason why things are done this way is that a company can’t sponsor the EP unless the company first comes into existence.
Also, the dictatorship eligibility for an EP holder is contingent upon the approvals from the Ministry of Manpower and appropriate documents. The Ministry of Manpower will grant a valid Letter of Consent (LOC) when approving the dictatorship eligibility of an EP holder. If the individual is already appointed as a director of another Singapore company, then the approval will be for acting as secondary directorship.
What is a Nominee Director and Why Might You Need One?
Foreign entrepreneurs and business owners who are unable to get Permanent Residences, Singapore Citizens, EntrePass Holders, or shareholders to support their company need local nominee director services. Section IXA of Singapore’s Companies Act makes the use of such services mandatory.
The name ‘Nominee’ indicates that the role of the director is strictly non-executive. The primary purpose of using Nominee Director Services is to conform to Singapore’s law and regulatory compliance.
We help our clients fulfil all the local director statutory compliance requirements of ACRA. Also, we can appoint a nominee director for you in accordance with Singapore law.
Although the role of the director is non-executive, our clients should note that all directors in the company have to abide by a general duty so that the company will remain compliant. Hence, the nominee director’s position has a general role in the company and is inherently liable to a few potential risks.
We help our nominee directors mitigate this liability by taking out appropriate insurances for them, including Directors & Officers Insurance and Deed of Indemnity.
Benefits of Nominee Director Services in Singapore
You will enjoy certain benefits when you get a Nominee Local Director for your company:
- An arrangement that makes your company easily and quickly satisfy all ACRA’s regulatory requirements.
- Easy access to someone with broad knowledge will ensure your entity files all required documents with the appropriate authority so that your entity will remain compliant all year round.
- A very convenient temporary arrangement for DP and EP applicants who eventually seek to become the director of their entities or overseas entities without a local presence.
- A trusted person to perform director duties with the utmost integrity.
- Provide local company office address proof.
- An individual familiar with all the rules and regulations will assure you peace of mind.
As a foreign entrepreneur/business owner who has a company in Singapore, you should use this unique opportunity to save on company registration, shareholder risks, and GST responsibilities. Let HeySara help you grow at the fast rate you have always desired.
Our team comprises several trusted professionals in Singapore, and each of these professionals is ready to serve your company wholeheartedly as a Nominee Director. They possess the knowledge and capabilities to keep your company compliant and maintain an excellent reputation at all times. Kindly contact us today to know more about the Nominee Director service, which your company can benefit from.