Directors play extremely important roles within any company in Singapore. This is because in many cases, directors of a company are the only people who are permitted to perform certain tasks which are essential to the proper operation of the company. In Singapore, every company which has been registered in the country is required to have at least one director who is a resident of Singapore. This requirement is specifically mentioned in the Companies Act. However, in certain cases, there is no person who is a resident of Singapore which the owner of a company might deem suitable to be a director of the company in question. In such instances, the appropriate course of action to be taken is that of hiring a nominee director.
Circumstances in Which a Nominee Director Must Be Hired by a Singapore Company
If a foreigner owns a company which has been incorporated in Singapore but is not able to select a resident of Singapore who is suited to become a director of the new company, then the foreigner can choose to hire a person who will serve as one of the company’s directors for a given fee. Such a director is known as a nominee director; however, some foreign-owned companies which are based in Singapore occasionally prefer to use the term “local director” instead. The nominee director of a Singapore-based company must either be a citizen or permanent resident of Singapore. This nominee director is also required to have a permanent address which is located in Singapore. A nominee director does not play any role in the operations of a Singapore company. The appointment of a nominee director is made purely to satisfy the regulatory requirements which exist in Singapore. Thus, it is not compulsory for every company in Singapore to have a nominee director. Only foreign-owned companies which do not have a local director are required to select a person to serve as a nominee director.
One of the services which we at Paul Hype Page & Co provide is that of supplying a nominee director to any company which may need one. Our nominee director fees are reasonable and the people we select to be nominee directors of our clients’ companies are always suitably qualified. Therefore, you will not have to be bothered if you have not yet found a suitable person for the position of director – you can always use the services of the nominee director whom we have chosen on your behalf.