Understanding Singapore Nominee Director Services: Benefits, Risks, and Considerations


When setting up an organization in Singapore, it is important to understand the legal and regulatory requirements. One of the key requirements would be to have at least one director who’s a Singaporean citizen, permanent resident, or employment pass holder. However, for foreign entrepreneurs or investors who don’t have a local director, a nominee director service can be a viable option. In this post, we will discuss just what a nominee director is, the benefits and risks connected with it, and some considerations when choosing a nominee director service.

What is a Nominee Director?

A nominee director is a person who acts as a director on behalf of a company but does not have any actual involvement in the management of the company. Basically, a nominee director is really a one who lends their name to the business and agrees to do something as a director but doesn’t have any decision-making power or authority.

Great things about Nominee Director Services:

The primary good thing about utilizing a nominee director service is that it allows foreign entrepreneurs or investors to comply with the requirement of having a local director. Additionally, it can also offer privacy and anonymity for the actual owner of the company. This could be particularly ideal for entrepreneurs who would like to keep their involvement in the company confidential, or for companies that are looking to maintain their competitive advantage by keeping their ownership structure hidden from competitors.

Another advantage of using a nominee director service is that it could give a local presence for the business. This could be helpful when dealing with local authorities, customers, or suppliers, since it creates a sense of legitimacy and trust.

Risks of Nominee Director Services:

While there are advantages to utilizing a nominee director service, additionally, there are some risks that need to be considered. The biggest risk is that the nominee director might not act in the best interests of the business. Since they have no actual involvement in the management of the business, they may not need a good understanding of the business’s operations or business goals. This could lead to conflicts of interest or decisions that are not aligned with the company’s long-term objectives.

Another risk is that the nominee director may be held liable for any wrongdoing or non-compliance by the company. As director fee in Singapore of the business may be able to avoid legal consequences, the nominee director could face penalties and even imprisonment if they are found to be complicit in virtually any illegal activities.

Considerations whenever choosing a Nominee Director Service:

Whenever choosing a nominee director service, it’s important to look at a few key factors. Firstly, it is important to choose a reputable and trustworthy company. The nominee director should have a good background and should be familiar with the legal and regulatory requirements of Singapore.

It’s also important to ensure that the nominee director does not have any conflicts of interest and can act in the very best interests of the company. This is often done by signing a nominee director agreement that clearly outlines the roles and responsibilities of the nominee director.

Additionally, the company should have a good understanding of the company’s business and objectives. This can make sure that the nominee director is able to make informed decisions which are aligned with the business’s goals.


To conclude, a nominee director service can be a useful option for foreign entrepreneurs or investors who would like to comply with the local director requirement in Singapore. However, it is important to understand the risks and considerations connected with using a nominee director service. By selecting a reputable service provider and making certain the nominee director does not have any conflicts of interest and is aligned with the company’s objectives, foreign entrepreneurs and investors can benefit from the benefits of a nominee director service while minimizing the risks.

Leave a Reply

Your email address will not be published. Required fields are marked *