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

What is a Nominee Director?

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

Benefits of Nominee Director Services:

The primary benefit of utilizing a nominee director service is that it allows foreign entrepreneurs or investors to comply with the requirement of having an area director. Additionally, it can also offer privacy and anonymity for the specific owner of the business. This could be particularly ideal for entrepreneurs who want to keep their involvement in the company confidential, or for companies that are looking to keep up their competitive advantage by keeping their ownership structure hidden from competitors.

Another advantage of utilizing a nominee director service is that it can provide a local presence for the company. nominee director services in Singapore can be helpful when coping 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 using a nominee director service, additionally, there are some risks that need to be considered. The largest risk is that the nominee director might not act in the very best interests of the business. Since they have no actual involvement in the management of the business, they may not have 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 business’s long-term objectives.

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

Considerations when choosing a Nominee Director Service:

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

You’ll want to ensure that the nominee director has no conflicts of interest and will act in the very best interests of the company. This can 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 business’s business and objectives. This can make sure that the nominee director can make informed decisions which are aligned with the business’s goals.


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