The offshore industry has been excelling due to the high-end confidentiality that the jurisdictions provide. Be it an individual who wants to safeguard the assets or company from divorce proceedings or even from competitors, offshore is the first choice in investors' minds.
Singapore is one of the widely chosen tax-haven jurisdiction recommended to proceed with as it is backed by privacy and easy setup process. One of the additional services that one can opt for to add an extra layer of protection to the offshore business entity established is nominee director services. If you are planning to start an offshore business in Singapore, or already have an offshore business entity, then this guide will serve to be beneficial for you.
According to the Singapore Companies Act, every business entity incorporated in the region must have a minimum of one local director to meet the legal requirements. If it's impossible, the next move is to appoint a nominee director to act as a supervisor. It is to note that a nominee director doesn't hold any shares in the company.
Singapore is a favourable investment destination when it comes to the offshore business establishment. An International Business Company (IBC) is one of the preferred business structures that gets incorporated.
If you are a foreigner who is looking forward to an offshore company established in Singapore and fail to get a local director, the tax-haven country helps you to get a nominee director service at ease.
As it has been already mentioned that the presence of a nominee director adds an extra layer of protection to a business entity. Now, the nominee director appointed also has a set of responsibilities that needs to be carried out accordingly:
The appointed nominee director will not be involved in any of the management, financial or operational matters of the business. If the appointed nominee director breaches the contract, severe legal actions will be carried out accordingly.
If you are looking forward to appointing a nominee director for your offshore business company, here's a list of activities that need to be carried out.
One of the most challenging things that the international business investor face is to understand or grab the initial point of start. It is quite evident that the incorporation process of an offshore company or proceeding with additional services requires some kind of knowledge that needs to be held.
To save time and carry out the process in a hassle-free way, business professionals prefer to appoint certified business experts.
The next move is to finalize the company or business name. This turns out to be a crucial task and needs to be carried out effectively as it will become your business's face on a later part. While selecting a company name, it is to be made sure that it stands unique from the market's competitors.
The very next move is to be sure that you hold the basic set of documents required for appointing a nominee director in Singapore. In general, the set includes:
Since the complete process is about appointing a nominee director for your offshore business in Singapore, you need to prepare the nominee director agreement that will highlight the roles and responsibilities of the appointed director. The prepared document needs to hold the specimen signatures.
Once all the documents are at hand, they need to be handed over to the business consultant who will present the same to the respective government authorities for inspection.
After submitting the documents, the authorities will scrutiny the same, and if it matches the requirements, the required approvals will be issued. If the process gets abort, you need to check with your business partner, who will assist you in clearing the process at ease.
In the final move, you need to open an offshore bank account that needs to be extended to carry out the business transactions at ease. Now, while incorporating an offshore business entity, an individual holds the flexibility to open a bank account in the same tax-haven jurisdiction of company incorporation or open in a different location. For example, an offshore investor might open an offshore company in the British Virgin Islands (BVI), and can proceed ahead with an offshore bank account in Mauritius, which is a right combination.
Opening up an offshore bank account helps a business investor grab multiple benefits, which can be easily understood through our latest guide, Advantages of Offshore Banking.
Thus, we have seen the complete process of appointing a nominee director in the Singapore jurisdiction, a simple and straightforward service if carried under an expert's guidance. At Business Setup Worldwide, we understand the offshore incorporation process with additional services like bank account opening or nominee services. Our business experts are well-versed with the process and can provide you with tailored solutions suiting your business needs, making us one of the top business consultants in Dubai.
If you want to know further steps, please have a word with our business experts. Contact us today-we'd be glad to assist!