When setting up a company in Singapore, it is critical to understand the legal and regulatory requirements. Among the key requirements would be to have a minumum of one director who’s a Singaporean citizen, permanent resident, or employment pass holder. However, for director fee in Singapore or investors who don’t have an area director, a nominee director service can be quite a viable option. In this article, we will discuss just what a nominee director is, the benefits and risks connected with it, plus some considerations when choosing a nominee director service.

Exactly what is a Nominee Director?

A nominee director is a one who acts as a director on behalf of a company but has no actual involvement in the management of the business. Basically, a nominee director is a one who lends their name to the company 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 advantage of utilizing a nominee director service is that it allows foreign entrepreneurs or investors to adhere to the requirement of having an area director. Additionally, additionally, it may offer privacy and anonymity for the specific 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 keep their competitive advantage by keeping their ownership structure hidden from competitors.

Another advantage of utilizing 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 feeling of legitimacy and trust.

Risks of Nominee Director Services:

While there are benefits to using a nominee director service, there are also some risks that require to be considered. The biggest risk is that the nominee director might not act in the best interests of the company. Since they haven’t any actual involvement in the management of the company, they may not have a good knowledge of the company’s operations or business goals. This could result in conflicts of interest or decisions that aren’t aligned with the company’s long-term objectives.

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

Considerations when choosing a Nominee Director Service:

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

You’ll want to make sure that the nominee director has no conflicts of interest and will act in the best interests of the business. This could be done by signing a nominee director agreement that clearly outlines the roles and responsibilities of the nominee director.

Additionally, the service provider should have an excellent understanding of the company’s business and objectives. This can make sure that the nominee director will be able to make informed decisions that are aligned with the company’s goals.


To conclude, a nominee director service could be a useful option for foreign entrepreneurs or investors who want to comply with the neighborhood director requirement in Singapore. However, it is critical to understand the risks and considerations connected with utilizing a nominee director service. By choosing a reputable company 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.