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Singapore is one of the world's best countries to do business, as per the World Bank's annual report. The city-state allows 100% foreign shareholding, making it an attractive choice for foreigners who wish to manage a business remotely. The corporate tax is also relatively lower than in other countries.
However, there are specific obligations that all Singapore-registered businesses must follow.
A Singapore business must fulfill specific requirements to register with ACRA, the Singapore Company Registrar. One such provision is to have a Local Resident director, who is an ordinarily resident in Singapore.
An ordinarily resident means a citizen, permanent resident, EntrePass holder, or an Employment Pass holder in Singapore. However to act as local Director of a company, if you have entrepass or employment pass, then such a pass must be sponsored by the company of which you intend to act as local director.
A Singapore company needs to appoint a Local director and submit his particulars to ACRA during registration. However, Singapore also allows foreigners to act as directors in their companies. There is no cap on how many directors a Singapore company can hire. Therefore, you can have as many local and foreign directors as long as there is a minimum of one Local director.
For foreigners who want to stay overseas after incorporating their companies, they can hire a nominee director using Epica's nominee director service. A nominee director will act as your company's local director. However, the nominee director is just a director on paper, and you, as an executive foreign director, will be responsible for all the business decisions.
Here is an overview of how it is done in practice:
An Indemnity agreement must be signed between you and the nominee director. This agreement prohibits the nominee director from participating in the company's management and operations. This agreement ensures that the company's authority remains with you only.
You can appoint yourself or someone from your company as the company's executive director to manage its business.
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