Nominee director services — foreigner essentials — Timeline and processing benchmarks

A nominee director service provides the locally resident director that Singapore law requires every company to have, so a foreign founder can incorporate without yet relocating. A reputable provider can be appointed within one to three business days of due-diligence clearance, letting incorporation proceed the same week.

Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.

What a nominee director is

Section 145 of the Companies Act 1967 requires every Singapore company to have at least one director who is ordinarily resident in Singapore — a citizen, permanent resident or holder of an eligible pass with a local address. A nominee director satisfies this requirement in a non-executive capacity: the appointee is a director for statutory purposes but does not run the business or hold signing authority over bank accounts. The founders remain the executive directors and shareholders who control the company.

Who it is for

The service is used by foreign entrepreneurs who want to incorporate a Singapore company before securing their own work pass, by overseas parent companies establishing a subsidiary, and by founders who will manage the business from abroad. Many pair the nominee arrangement with an Employment Pass application so a founder can later become the resident director; the pass mechanics are covered in our Can an Employment Pass Holder Be a Director of Another. Where the venture is a family-office or fund build, our Multi-jurisdiction family office structures — Timeline and processing benchmarks explains the tax layer that often sits above the operating company.

Requirements and safeguards

Providers must complete know-your-customer due diligence on the beneficial owners before appointment, and typically require a security deposit and an indemnity agreement because Section 157 of the Companies Act 1967 imposes duties of honesty and reasonable diligence on every director, nominee or not. Prudent founders also put in place a board resolution limiting the nominee’s authority, retain full control of the bank account, and keep the register of controllers current under the Companies Act.

Cost and timeline benchmarks (2026)

Annual nominee director fees generally range from S$1,800 to S$3,000, with a refundable security deposit of S$2,000 to S$5,000. Appointment takes one to three business days once KYC clears; incorporation itself is usually completed the same day through ACRA. Founders should budget to replace the nominee within six to twelve months by obtaining their own Employment Pass or appointing a resident director, since the service is meant to be a bridge, not a permanent arrangement.

Step-by-step process

Submit identity and address documents for all beneficial owners for KYC. Sign the nominee director agreement, indemnity and deposit terms. The provider is named as resident director in the incorporation documents. ACRA registers the company and issues the business profile. Open the corporate bank account with the founders as signatories. When the founder secures a work pass, appoint them as director and, if desired, resign the nominee.

Common mistakes and gotchas

The biggest risk is treating a nominee as a permanent solution and losing sight of the statutory duties that still bind the appointee. Using an unregulated individual rather than a corporate-services provider can expose founders to a director who blocks filings or demands a higher fee to resign. Founders sometimes forget that the nominee, as a director, must consent to filings — so a cooperative, professional provider matters. Finally, keep the controllers register and annual returns current, or the company risks ACRA penalties.

FAQs

Does a nominee director control my company? No. The role is non-executive; founders keep management control and bank signing authority.

How quickly can one be appointed? One to three business days once due diligence clears.

How long should I keep the service? Usually six to twelve months, until you obtain a work pass or appoint your own resident director.

Is a security deposit normal? Yes — S$2,000 to S$5,000 is standard and is refundable on resignation.

Authoritative references: ACRA, IRAS and the Ministry of Manpower set out the incorporation, tax and work-pass rules.

Related reading on this site: Subsidiary of foreign parent — director and capital pitfalls —.

Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email [email protected]. Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.