Strategically located in Southeast Asia, Singapore is an investment paradise. In 2020, the jurisdiction was rated the second-best country on the globe for doing business and has held the top spot for several consecutive years. If you are an investor or entrepreneur looking forward to expanding operations abroad, Singapore is one jurisdiction that will never disappoint. However, there is one specific requirement for company registration that often stands in the way of many investors: the resident company director.
Well, you do not have to forego the large dream of expanding your company’s operations into this high-potential jurisdiction because the companies act allows for the use of a nominee director. In this post, we take a closer look at this important position and demonstrate the benefits of working with a nominee director service.
What is a Nominee Director?
Before looking at the benefit of using a nominee director, let’s go back to the beginning and answer the basic question, “what does it mean?”
When opening a company in Singapore, the Companies Act requires that you must have a local director. What if you do not have someone in Singapore to act as your resident director? The best solution is to hire another person to act as the director. This person is referred to as the nominee director (ND). The ND must be a permanent resident or citizen of Singapore and have a permanent address.
The nominee director is not directly involved in the running of the company. This means that he/she is only selected for compliance purposes. However, this person should be conversant with the company laws in the country because Singapore requires him/her to help drive compliance.
Note that it is not just Singapore where foreign investors can use nominee director services. You might also want to work with a nominee director when opening a company in Hong Kong or China to help conceal your identity.
The Process of Hiring a Nominee Director
Now that you know what a nominee director is, what is the process involved in his/her recruitment? First, you need to ensure that the company’s articles of association allow for the appointment of a nominee director. If the original articles of association had not factored in, consider making changes and notify the registrar about the changes. Then, follow these steps:
- The appointment of a nominee director for your company can be made through a resolution passed in the company’s board meeting. Remember that the directors need to be notified about the meeting with the agenda being “hiring a nominee director.”
- Once the board holds the meeting and passes the motion, the company secretary or any director is required to sign the documents and pass them to the Registrar of Companies.
- Before the selected nominee director takes up the position, he/she has to provide a declaration about his interest in other companies. Then, he has to give consent.
- Finally, the details of the appointed nominee are filed with the Singapore Registrar of Companies using the DIR-12 form.
- If the nominee selected is already a director in other firms, the Companies Act requires him/her to declare the new position to the companies he serves as a director.
Does the process look lengthy? Well, it is to most investors, but it can be simplified by working with nominee director services. The experts help you to identify the best person to serve as a director for better results.
Benefits of Using Nominee Director Service in Singapore
There are dozens of benefits that you are sure of getting by working with the right nominee director service in Singapore.
- Provides flexible arrangements to help you quickly satisfy all the requirements for company registration. If you were to search for a nominee director alone, the process would be lengthy and probably derail company registration. A good nominee director service ensures that the process is completed fast and professionally.
- It is an excellent method of onboarding a person you would want to later become a full director. When running an offshore company, the people you bring on board are very important in determining the success that can be achieved. The nominee director would particularly work well when targeting to open new subsidiaries abroad because he/she would have understood the company’s focus, mission, and long-term targets.
- When top nominee director firms recommend professionals to take the nominee director positions, they understand the highly competitive Singapore market. Therefore, they always pick a professional who will add value. For example, the nominee directors brought by Primasia are experts in business matters and will come in handy in helping your company enrich its strategies.
- Another crucial role of the nominee director firm is ensuring that your interests in the company are taken care of. Although the primary target is compliance with the Singapore Companies Act, nominee director services also focus on protecting the investors’ interest. Therefore, they identify only the person who is capable of advancing your agenda, target, and goals of the investors. The director will also help to keep an eye on the company operations and ensure that everything moves in line with the investor’s interests.
Why Primasia is the Best Nominee Service for Your Company
We must say that getting a nominee director is only one of the corporate actions that your company needs for success. The good thing about working with Primasia agency of experts is that in addition to helping you identify the right nominee director, it can also assist with other executive services, including:
- Payroll management: This is one of the tasking duties, and it is better handled by professionals. This means that as Primasia experts work on payroll, your team can focus on the core activities of growing the company revenue.
- Company accounting: To understand how the company is fairing on, accounting should be done correctly and on time. It is also a statutory requirement, and Primasia can help to ensure it is done correctly. The experts will also come in handy in helping your company craft the right strategies for fast growth and success.
- Tax matters: Like other jurisdictions, Singapore is very strict on tax matters. In addition to offering accounting services, Primasia’s accountants are also experts in tax matters. Therefore, you can count on them to comply with the relevant tax laws and take advantage of every available incentive.
- Company incorporation: Are you looking forward to opening another branch of your company, perhaps in the neighboring markets? Primasia will be there to help you achieve the goal by preparing the documents on your behalf for faster incorporation. For example, you will not need to take a flight to Hong Kong or China to get your company registered.
As you can see, the nominee director service can help you to quickly comply with all the requirements for company registration in Singapore. Primasia simplifies the process, ensuring that only the most qualified persons are recruited. We have the best professionals who understand the Asian market well and you can count on us for success. Contact one of our experts in nominee services for assistance in identifying the best nominee director or for other executive services, such as tax matters and accounting.