Can I Incorporate Company in Singapore Without a Local Director?
Singapore is one of the most business-friendly countries in the world, attracting entrepreneurs with its efficient company incorporation process, low corporate tax rates, and strong regulatory framework. However, one common question among foreign entrepreneurs and businesses is whether they can incorporate a company in Singapore without appointing a local director.
Understanding Singapore’s Local Director Requirement
The Accounting and Corporate Regulatory Authority (ACRA) mandates that every company registered in Singapore must have at least one locally resident director. This means that foreign business owners cannot incorporate a company without fulfilling this requirement.
Who Qualifies as a Local Director?
To qualify as a local director in Singapore, an individual must be:
- A Singapore Citizen
- A Singapore Permanent Resident (PR)
- An Employment Pass (EP) or EntrePass holder with a registered local residential address
This rule ensures that there is at least one accountable person within Singapore who can be held responsible for the company’s statutory compliance and obligations.
Options for Foreigners Without a Local Director
If you are a foreign entrepreneur who does not have a local director, here are several solutions to incorporate your business legally in Singapore:
1. Appoint a Nominee Director
One of the most common solutions for foreigners is to engage a nominee director service. A nominee director is a local resident who meets the directorship requirements but does not have any operational control over the business.
Key Considerations When Hiring a Nominee Director:
- Legal Responsibility: The nominee director is still legally responsible for the company’s compliance, so businesses must ensure they engage a trustworthy and professional service.
- Nominee Agreement: This contract defines the role and limits the decision-making authority of the nominee director.
- Security Deposit or Fee: Many corporate service providers require a security deposit or annual fees to provide nominee director services.
- Confidentiality & Trust: Choosing a nominee director from a reputable firm ensures privacy and minimizes risks related to unauthorized decision-making.
- Compliance Assurance: A nominee director ensures that the company adheres to statutory regulations, including filing annual returns and tax documents.
2. Apply for an Employment Pass (EP) and Become a Local Director
Another option is for the foreign business owner to apply for an Employment Pass (EP) through their newly registered company. Once the EP is approved, the foreign owner can act as the local director.
Steps to Apply for an EP:
- Incorporate a company by using a nominee director service (temporary arrangement).
- Open a corporate bank account in Singapore to support business transactions.
- Apply for an Employment Pass through the Ministry of Manpower (MOM).
- Wait for EP approval, which usually takes 4-8 weeks.
- Once the EP is approved, replace the nominee director with yourself as the local director.
This method is ideal for entrepreneurs who plan to relocate and manage the business from Singapore.
3. Partner with a Local Co-Founder or Investor
If you are open to collaboration, another approach is to partner with a Singapore Citizen or Permanent Resident who can act as the local director. This person should be someone you trust, as they will be legally accountable for the company’s compliance.
Advantages of Partnering with a Local Director:
- Strong Local Presence: A local partner can provide insights into the business landscape and regulatory framework.
- Banking & Financing Benefits: Having a local director may simplify banking procedures and access to local financial support.
- Easier Compliance: Reduces the need for nominee services or EP applications.
Why Work with a Professional Corporate Services Provider?
Navigating Singapore’s incorporation requirements as a foreign entrepreneur can be challenging. At SOAS, we provide end-to-end company incorporation services, including nominee director services, Employment Pass application support, and business compliance solutions.
Our Services Include:
- Company Registration & Setup
- Nominee Director Services
- Employment Pass Application Assistance
- Corporate Secretarial Services
- Accounting & Tax Compliance
- Business Advisory for Foreign Entrepreneurs
- Bank Account Opening Assistance
With years of expertise in assisting foreign businesses, SOAS ensures that you can set up and operate your Singapore company smoothly without legal complications.
Why Choose SOAS?
- Experienced Professionals: Our team consists of experts in corporate compliance, taxation, and business advisory.
- End-to-End Support: From company incorporation to post-registration compliance, we handle everything.
- Transparent Pricing: No hidden costs—clear and affordable pricing for all services.
- Dedicated Customer Support: Personalized assistance to guide you through every step of setting up your business in Singapore.
FAQs About Incorporate a Company in Singapore Without a Local Director
Q. Can a foreigner fully own a company in Singapore?
Yes, foreigners can own 100% of a company in Singapore, but they must appoint at least one local director who is a Singapore Citizen, PR, or an eligible pass holder.
Q. Is it mandatory to have a physical office in Singapore to register a company?
Yes, ACRA requires all Singapore-registered companies to have a local registered office address, but virtual office services are allowed.
Q. How much does it cost to hire a nominee director in Singapore?
The cost varies depending on the service provider, typically ranging between SGD 1,500 to SGD 3,500 per year, along with a security deposit in some cases.
Q. Can I operate my Singapore company from overseas?
Yes, you can manage and operate your Singapore company remotely, but you still need a local director for compliance purposes.
Q. How long does it take to incorporate a company in Singapore?
With all necessary documents ready, company incorporation can be completed within 1-2 days, but Employment Pass applications may take 4-8 weeks.
Wrapping Up
While you cannot incorporate a company in Singapore without a local director, there are practical solutions such as hiring a nominee director, applying for an Employment Pass, or partnering with a local individual. Each approach has its own pros and cons, depending on your business goals.
If you need professional assistance with your Singapore company incorporation, contact SOAS today to get started! Our team is ready to help you navigate the incorporation process with ease and compliance.