Reasons You Might Require a Nominee Director
When incorporating a company in Singapore, business owners may consider hiring a nominee director to fulfill certain legal and regulatory requirements. A nominee director is a person who is appointed to act as a director on behalf of the company but does not necessarily have any decision-making power or influence over the company’s operations. There are several reasons why a business owner might require a nominee director, and in this article, we will explore some of the common reasons for hiring one.
Reasons You Might Require a Nominee Director:
- Minimum number of directors: Singapore law requires all companies to have at least one director who is a resident of Singapore. If you are a foreign business owner looking to incorporate in Singapore, you may not meet this requirement. In such cases, you can hire a nominee director to fulfill this requirement on your behalf.
- Confidentiality: If you do not want your personal details, such as your name and address, to be made publicly available, you can appoint a nominee director to act on your behalf. This can help to protect your privacy and keep your personal information confidential.
- Professional indemnity insurance: Some professions, such as lawyers and accountants, are required to have professional indemnity insurance. If you are a professional looking to incorporate in Singapore and do not have the necessary insurance, you can appoint a nominee director to fulfill this requirement.
- Lack of time: If you are a busy business owner with little time to devote to the day-to-day operations of your company, you may consider hiring a nominee director to handle these responsibilities on your behalf. A nominee director can take care of tasks such as attending board meetings and filing annual returns, freeing up your time to focus on other aspects of your business.
- Limited liability: In some cases, business owners may want to limit their liability as directors of the company. Hiring a nominee director can help to achieve this, as the nominee director will be the one acting as a director on behalf of the company.
There are several reasons why a business owner might require a nominee director when incorporating a company in Singapore. From fulfilling legal and regulatory requirements to protecting privacy and limiting liability, a nominee director can be an asset for any business. If you need nominee director services, we recommend considering 3E Accounting Pte Ltd, a reputable corporate service provider in Singapore. With their expertise and professionalism, 3E Accounting Pte Ltd can assist you in navigating the process of incorporating a company and finding the right nominee director for your business needs.