The resident director requirement, explained
The Companies Act requires every Singapore company to have at least one director who is ordinarily resident in Singapore: broadly, a Singapore citizen, permanent resident, or an eligible pass holder living here. Foreign-owned companies without a local founder hit this wall immediately at incorporation.
A nominee director solves it. A Singapore-resident professional is appointed as a non-executive director to satisfy the residency requirement, while the real owners keep running the business.
Why nominee directorship is taken seriously
Being a director isn't a formality. Singapore law imposes the same statutory duties and personal liability on a nominee as on any other director. That's why reputable providers run thorough know-your-customer (KYC) checks before accepting an appointment, stay across the company's filings during it, and take a security deposit against the risk they carry.
Treat cheap, no-questions-asked nominee services as the red flag they are: a nominee who does no diligence on you is also doing none on the other companies whose risk they share.
Who it's for
- Overseas founders incorporating in Singapore without a locally resident director.
- Foreign companies setting up a Singapore subsidiary.
- Founders waiting on an Employment Pass who need interim coverage of the residency requirement.
What you get
Resident nominee director
A non-executive local director appointed to satisfy the Companies Act residency requirement. We make sure the person appointed is qualified to act in the role.
Non-executive by design
The nominee takes no part in commercial decisions and holds no executive power. You run the business.
Compliance oversight
Because a nominee director takes on statutory duties, we keep your filings and records in good order throughout.
How it works
KYC & agreement
We complete due diligence on the company and its owners and sign the nominee agreement.
Deposit & appointment
The security deposit is placed and the nominee director is appointed with ACRA.
Ongoing review
We monitor the company’s compliance during the appointment; the deposit is returned when the appointment ends in good standing.
Timeline & Pricing
Timeline
Appointed alongside incorporation or within days for existing companies.
Cost
S$2,000 per year, or S$600 per quarter for short arrangements. Plus a S$2,000 one-off security deposit held for the duration of the appointment.
Pricing
| Nominee director | S$2,000 / year |
| Nominee director (quarterly)For founders who need cover while incorporating and applying for their own visa. | S$600 / quarter |
| Security depositHeld for the duration of the appointment; applies to annual and quarterly arrangements. | S$2,000 one-off |
Related services
| Authorised representative (foreign branch)A resident authorised representative for Singapore branches of foreign companies. | S$2,000 / year |
| Corppass administration | S$510 one-off |
Does the nominee control your company?
No. The appointment agreement defines the role as non-executive: the nominee takes no part in commercial decisions, holds no operational authority, and can't access bank accounts. Shareholding, and therefore ownership, stays exactly where it was.
Most founders treat the nominee as a bridge. Once you or a co-founder obtains an Employment Pass (EP) and becomes resident, we swap the directorship over, close the appointment, and return the deposit with the company in good standing.
A quarterly option while your visa is in progress
Plenty of founders only need a nominee for a few months: long enough to incorporate the company and get their own Employment Pass approved. For exactly that situation we offer the nominee directorship at S$600 per quarter instead of the annual fee. The S$2,000 security deposit still applies and is returned when the appointment ends with the company in good standing.
Once your pass is approved, we transfer the directorship to you and close the arrangement. If plans change and the appointment runs longer, we'll tell you when the annual rate becomes the cheaper option.
Frequently Asked Questions
Why is a nominee director needed at all?
Singapore law requires every company to have at least one director who is ordinarily resident in Singapore. If all your directors are overseas, a local nominee fills that requirement.
Why the security deposit?
A director carries personal statutory liability. The deposit protects the nominee against costs arising from non-compliance and is returned when the appointment ends with the company in good standing.
Can I remove the nominee later?
Yes. Many clients replace the nominee once a founder obtains an Employment Pass and becomes the resident director. We handle the switch and the visa application.
Is using a nominee director legal?
Yes. It’s a standard, legal arrangement used by foreign-owned companies across Singapore. The nominee carries full statutory duties, which is exactly why proper KYC and ongoing compliance oversight come with the service.
Can the nominee director control my company?
No. The appointment is explicitly non-executive, so the nominee makes no commercial decisions, holds no operational authority, and has no bank access. Ownership sits with the shareholders: you.
If you're comparing providers, we've written up the market in Best Company Formation Packages for Foreigners in Singapore and Best Nominee Director Services in Singapore.