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Why foreign founders often need a nominee director in Singapore, what the role really involves and how to keep control of your company.
Singapore law requires at least one director who is ordinarily resident in the country. Foreign founders who do not yet hold an Employment Pass usually appoint a nominee director to satisfy this requirement while they build the business.
What a nominee director does
The nominee is a non executive director who lends their residency status to your company. They do not run operations, sign customer contracts or make commercial decisions. A formal indemnity agreement defines the boundaries clearly.
Keeping control
- Founders remain majority shareholders at all times.
- Bank signing rights stay with the founders.
- A written agreement limits the nominee's powers strictly.