Top 3 Reasons for Choosing a Nominee Director in Singapore
One common statutory around the world that is required during the formation of company is that it must have at least one director. As a result of this requirement, many entrepreneurs are on the lookout for nominee director Singapore that can be engaged when forming a company. Having an understanding of some of the roles of a nominee director can greatly help in how they should be engaged.
A nominee director stands apart from other directors due to the fact that they are normally nominated by one of the shareholders of the company to represent the interest of the stakeholder within the company. Nominee directors may therefore not be involved in the management, operational or even financial matters of the company. Here are some of the top reasons for having nominee director services Singapore.
If you are considering the formation of a company in Singapore and you are not a resident of the country then it’s required by law that you seek for local director services. The chosen nominee director should be able to meet all of the requirements about residency either by being a citizen of Singapore, a permanent resident of Singapore or any other requirement for proof of his citizenship as a local of Singapore.
If you are located in the United Kingdom for example and you intend to form a limited company in Singapore then you will definitely need nominee director in Singapore to meet the statutory requirements for formation of a Company.
Appointing nominee director in Singapore can also be as a result of maintaining secrecy about the true owner of the company. All of these are undertaken in a way that is legitimate and very legal according to law. There are business owners who due to some reasons may not want their names to be associated with some companies that they own privately, in such a case, local directory services can be sought to help with addressing the issue as required by law.
The fact that you are nominated by the owner of the company for local director services does not in any way mean that the nominee director has some level of control over the business; the company owner will still be the individual in control of the business however as per legal database, and for reasons of confidentiality and business sensitiveness, you will be there to offer nominee director services Singapore.
There are a number of logistical benefits that come by having a nominee director in Singapore. In the case of incorporation of a company by some offshore companies, local directory services may be required to help with opening corporate accounts and for completion of company incorporation. Corporate bank account applications normally require the services of a company director that needs to meet with the bank in person.
Having a nominee director in Singapore can in a great way save the investor’s time and money that may be involved in traveling to meet with the bank for such reasons.