Setting up a business in Singapore is easy for a foreign businessman. The business-friendly ecosystem of the country is conducive to carrying out business in a smooth manner. The encouraging tax framework adds to the advantages of starting a business in Singapore.
However, there are certain statutory regulations that must be followed when you set up a private limited company in the country. Having at least one director who is a resident of Singapore is one such requirement. This issue can be resolved by hiring a nominee director. There are several benefits of hiring a nominee director for your company in Singapore, as outlined below:
Protect your privacy
Appointing a nominee director can be of great help when you want to protect your identity as the real owner of the company. The name of the nominee director will appear on the official records of the company. However, the real control will be in your hands. There will be no power of the nominee director to influence the daily business activities of your company. Nominee directors generally sign a power of attorney in favor of the real owners. This will ensure that your rights are not impacted.
Facilitate the registration process
There are certain registration processes that need the involvement of a company’s director. These processes can sometimes be time-consuming. When you hire a nominee director, he or she will be able to facilitate the registration process by acting in the capacity of a director. If there is a need to obtain any special permission or license to run the company, the nominee director will be able to do so. This will save you the trouble to travel down to Singapore leaving aside your other business commitments in other parts of the world for such matters.
Fulfill logistical requirements
To do business in Singapore, your offshore company would need to open bank accounts in the country. This will necessitate your presence to complete the formalities with the banks. Having a nominee director can spare your presence in Singapore for such issues. Your director will be able to take care of attending the bank interviews on your behalf and make sure that the bank accounts get opened without any hitch.
Save yourself from tax implications
When your offshore company in Singapore makes profits, you will be liable to pay tax for the same to the tax officials in the country where you reside. But you can avoid doing this if you prove that the company is run in an independent manner by a director based in Singapore itself. A nominee director helps you to do this easily.
Remove the nominee director when required
When you hire a nominee director through a reputed consultancy agency in Singapore, the agency will ensure that the director signs on a resignation form when taking up the position. This form will have no date mentioned on it. Thus, you will be able to remove or replace the director whenever you want to do so.