May 09 , 2025
The Ultimate Guide to Directorship and Nominee Services in Singapore
Singapore remains one of the most attractive destinations for global business expansion, owing to its strong regulatory framework, business-friendly environment, and robust corporate governance standards. Central to company incorporation and compliance in Singapore is the requirement for at least one locally resident director. For foreign individuals or entities without a local presence, nominee directorship and shareholder services are key solutions to meet regulatory requirements and ensure business continuity.
Legal Framework for Directorship in Singapore
Under the Companies Act (Cap. 50), every company incorporated in Singapore must have at least one director who is ordinarily resident in Singapore. This means the individual must be:
- A Singapore citizen, Permanent Resident, or holder of an EntrePass, Employment Pass, or Dependant Pass with a local residential address.
- At least 18 years old and not disqualified under the Act (e.g., bankrupt or convicted of fraud-related offences).
Key Responsibilities of a Company Director:
- Ensuring statutory compliance (e.g., annual returns, financial reporting).
- Acting in good faith and in the best interest of the company.
- Avoiding conflicts of interest.
- Preventing insolvent trading.
Nominee Director Services
Definition:
A Nominee Director is a third-party individual appointed to meet the legal requirement of a local resident director. This person does not participate in business operations or have decision-making authority unless explicitly authorized.
Common Use Cases:
- Foreign-owned companies needing to meet ACRA’s local directorship requirement.
- Holding companies or SPVs set up for investment purposes.
- Businesses with no operational footprint in Singapore.
Legal Protections:
A Nominee Director Agreement is typically executed to limit the role strictly to regulatory compliance and exclude business or fiduciary authority. Security deposits are often required to protect the nominee against risks.
Indicative Pricing (subject to provider and scope):
|
Service Provider |
Annual Fee (SGD) |
Security Deposit |
Inclusions |
|
Sleek |
2,000 |
2,000–3,000 |
Secretarial & compliance support |
|
Rikvin |
2,500 |
2,500 |
Corporate governance |
|
Osome |
2,160 |
2,000 |
Registered address & compliance |
Nominee Shareholder Services
Definition:
A Nominee Shareholder holds shares in trust for the actual (beneficial) owner, whose identity is protected from the public register.
Purpose:
- Maintain confidentiality of the actual owner.
- Protect asset ownership and reduce exposure.
- Support investment holding structures.
Documentation:
A Declaration of Trust is executed between the nominee and the beneficial owner, acknowledging the latter’s full rights to dividends, votes, and eventual sale of shares.
Risks and Controls:
- Nominee arrangements must not be used for illicit activities (e.g., money laundering).
- Use of licensed and reputable service providers is critical.
- Annual renewal and termination clauses must be clearly defined.
Compliance and Due Diligence
Singapore maintains high standards for corporate transparency and anti-money laundering (AML) regulations. Providers of nominee services must conduct proper Know Your Customer (KYC) and due diligence checks, including:
- Identity verification
- Source of funds
- Beneficial ownership declaration
- Ongoing compliance monitoring
Failure to comply with AML/CFT obligations can result in severe penalties, including criminal charges.
Choosing a Service Provider
Key considerations when engaging directorship or nominee services:
- Accreditation: Ensure the provider is licensed or registered under the Accounting and Corporate Regulatory Authority (ACRA).
- Transparency: Agreements should clearly state the roles, limitations, and legal recourse.
- Reputation: Select firms with verifiable track records, client references, and liability protection.
- Support Services: Many providers offer bundled services including secretarial support, tax filing, accounting, and annual return preparation.
Conclusion
Directorship and nominee services in Singapore provide vital solutions for foreign companies and investors to operate legally and efficiently within a world-class regulatory environment. While these services offer privacy and regulatory compliance, they must be used responsibly and in adherence to Singapore’s strict governance and anti-corruption standards.
Engagement with professional, transparent, and compliant service providers is essential for risk mitigation and long-term operational success.
How We Can Help?
At Chandrawat & Partners, we provide comprehensive nominee services in Singapore to support business owners who value regulatory compliance, operational flexibility, and privacy. Whether you’re establishing a new entity or managing an existing one, our nominee solutions are designed to help you meet statutory requirements while maintaining full control and discretion.
We assist clients by appointing trusted professionals to act as nominee directors or shareholders, ensuring all legal obligations are fulfilled without interfering in the daily operations or decision-making of your company. Our services are governed by clear legal agreements that safeguard your rights and interests at all times.
With our nominee services, you can:
- Meet Singapore’s legal requirement for a locally resident director.
- Maintain confidentiality of beneficial ownership in public records.
- Ensure full compliance with ACRA and Singapore’s regulatory framework.
- Secure appointments through legally binding trust and indemnity agreements.
- Benefit from a seamless onboarding process and ongoing administrative support.
- Enjoy peace of mind with secure documentation and strict data privacy.
We are committed to delivering professional, discreet, and fully compliant nominee services to support your business growth in Singapore.
For more information or queries, please email us at
[email protected]
Key Contact
Surendra Singh Chandrawat
Managing Partner
