Singapore has long been a preferred destination for global entrepreneurs seeking to expand into Asia. Its low taxes, stable economy, and strong legal framework make it one of the most attractive places to incorporate a company.
However, before you can start doing business, there’s a key compliance point that every founder must understand: every Singapore-incorporated company must appoint at least one Local Director.
In this article, we explain what the Local Director requirement means, who qualifies, and how foreign investors can meet this condition while staying fully compliant.
What Is the Local Director Requirement?
Under the Singapore Companies Act, all companies incorporated in Singapore must have at least one director who is “ordinarily resident” in Singapore.
This means the director must be:
- A Singapore Citizen,
- A Singapore Permanent Resident (PR), or
- A foreigner holding an Employment Pass (EP), EntrePass, or a Dependant’s Pass with a valid Letter of Consent (LOC) issued by the Ministry of Manpower (MOM).
This rule ensures that there is always a responsible, locally based individual who can be held accountable for the company’s compliance with Singapore law.
Why Does Singapore Require a Local Director?
The requirement is not just a formality — it plays a vital role in maintaining Singapore’s trusted business environment. Having a Local Director ensures:
- Regulatory compliance – authorities can reach a responsible representative in Singapore.
- Transparency – foreign-owned businesses remain accountable to local laws.
- Governance – strengthens credibility with banks, partners, and regulators.
Can Foreign Entrepreneurs Be the Local Director?
Yes — but only if they meet both conditions:
- Hold a valid work pass (EP, EntrePass, or DP with LOC), and
- Maintain a local residential address in Singapore.
If you do not plan to relocate to Singapore, you cannot serve as the Local Director yourself. Instead, you’ll need to appoint a Nominee Director.
What Is a Nominee Director?
A Nominee Director is a Singapore resident who fulfills the statutory Local Director requirement on behalf of a foreign-owned company.
- They are officially listed with ACRA as a director.
- Their role is typically limited to compliance, with no involvement in daily business operations.
- A service agreement is signed to protect both the company and the nominee director.
This arrangement allows foreign entrepreneurs to incorporate and operate in Singapore even if they are not physically based in the country.
Responsibilities of Directors in Singapore
It’s important to understand that all directors — local or foreign — carry legal duties under the Companies Act. These include:
- Acting honestly and in the best interest of the company.
- Ensuring proper accounting records are maintained.
- Filing annual returns with ACRA on time.
- Avoiding conflicts of interest.
Even when a Nominee Director is appointed, ultimate responsibility for the company remains with its shareholders and directors collectively.
Key Takeaways
- Every company in Singapore must have at least one Local Director.
- Eligible Local Directors include Singapore Citizens, PRs, and foreigners with an EP, EntrePass, or DP (with LOC).
- Foreigners who do not relocate can appoint a Nominee Director to satisfy this requirement.
- Directors hold serious legal responsibilities, making it important to choose a reliable partner.
Next Steps
Establishing your company in Singapore requires a strong and compliant foundation. By appointing a trusted professional as your Local Director, you can ensure full regulatory compliance while focusing on building and scaling your business.
Partner with InvestinAsia today and take the first step toward a confident and seamless expansion into Singapore.
Tel: (+66) 2 1188 999
Email: hello@investinasia.co.th
Website: https://investinasia.co.th
