Quick answer
The cost of a local director service in Singapore usually ranges from S$1,500 to S$5,000 per year, with most professional providers charging between S$2,000 and S$3,000 annually, often plus a refundable security deposit.
Savvy Platform offers a more cost efficient and SaaS friendly option, with nominee director services starting at around S$1,450 per year and short term coverage included during incorporation.
Why Singapore requires a local director?
According to the Companies Act, every Singapore company must have at least one locally resident director who is a Singapore Citizen, Permanent Resident, or Employment Pass holder.
For foreign founders, this requirement is met by appointing a nominee director from a licensed Corporate Service Provider. This director ensures the company complies with:
- ACRA regulations
- Tax filings with IRAS
- Anti money laundering obligations
- Statutory record keeping
Without a local director, a company cannot be incorporated or maintained legally in Singapore.
How much does a nominee director cost in Singapore?
Here is the realistic market pricing based on published corporate services data.
|
Cost component |
Typical price |
|
Annual nominee director fee |
S$1,500 to S$5,000+ |
|
Most common range |
S$2,000 to S$3,000 per year |
|
Refundable security deposit |
S$1,000 to S$5,000 |
|
Setup or onboarding |
Sometimes included, sometimes S$300 to S$800 |
Most professional firms charge around S$2,000 to S$2,400 per year and require a security deposit to protect the director against legal risk.
What is usually included in a local director service?
Not all nominee director packages cover the same scope.
Core inclusions
- ACRA listed resident director
- Legal responsibility under the Companies Act
- Director consent and filings
- Ongoing compliance availability
Commonly bundled services
- Company secretary
- Registered office address
- Annual returns
- AGM and statutory records
- Bank compliance support
Often excluded unless specified
- Bank account opening
- Employment Pass guidance
- AML and KYC follow up
- Transaction monitoring
- Corporate structuring
Low cost providers usually only supply the director on paper. SaaS ready providers include real compliance handling.
Security deposit requirements explained
Most nominee director services require a refundable deposit.
|
Business type |
Typical deposit |
|
Low risk local business |
S$1,000 to S$2,000 |
|
SaaS or online business |
S$2,000 to S$5,000 |
|
Fintech or payments |
S$5,000 or more |
The deposit protects the director against fines, tax issues, AML breaches and legal exposure. It is refunded when the nominee director is removed and the company is fully compliant.
Cost breakdown for a typical SaaS founder
A realistic first year budget looks like this.
|
Cost item |
Typical amount |
|
Nominee director annual fee |
S$2,000 to S$3,000 |
|
Security deposit |
S$2,000 to S$5,000 |
|
Company secretary |
S$300 to S$800 |
|
Registered address |
S$200 to S$400 |
|
Compliance filings |
S$200 to S$600 |
Total first year cash outlay usually falls between S$4,500 and S$9,000, even though part of it is refundable.
Why SaaS companies pay more than local businesses?
SaaS companies are treated as higher risk because they involve:
- Online payments
- Subscription billing
- International customers
- Data protection obligations
- Banking and AML scrutiny
This increases legal and regulatory exposure for the nominee director, which is reflected in pricing.
How Savvy Platform compares?
Savvy Platform operates inside the real market range but simplifies the cost structure for SaaS founders.
Savvy Platform offers:
- Free nominee director for up to three months during incorporation
- Around S$1,450 per year for standard nominee director services
- Integrated company secretary and registered address
- Bank account setup support
- Employment Pass assistance
This reduces the need for multiple providers and lowers the total cost of compliance for tech founders.
Conclusion
A proper local director service in Singapore usually costs S$2,000 to S$3,000 per year once compliance and risk are factored in.
Savvy Platform provides a more cost efficient and scalable solution for SaaS founders by bundling nominee director services into a complete business platform.
If you want fast incorporation, compliant local directors and zero operational friction, Savvy Platform is the smartest way to set up in Singapore.
FAQ
How much is the cheapest nominee director in Singapore?
The lowest professional options start around S$1,500 per year, though these packages usually exclude security deposits and compliance support services.
Do I need to pay a security deposit?
Yes. Most providers require a refundable deposit between S$1,000 and S$5,000 to protect the director against legal and compliance risks.
Can I remove the nominee director later?
Yes. Once you obtain an Employment Pass and become a resident director yourself, the nominee director can be removed from your company.
Is nominee director cost tax deductible?
Yes. Nominee director fees are a legitimate business compliance expense and are tax deductible under Singapore corporate tax rules.
How fast can a nominee director be appointed?
With platforms like Savvy Platform, a nominee director can be appointed and registered within one to two business days after submission.
Do banks require a nominee director?
Banks in Singapore require companies to have a resident director to meet their AML and compliance rules before approving accounts.
Can a nominee director control my company?
No. Nominee directors hold legal responsibility under the Companies Act but have no operational control over your business decisions or bank accounts.
Does every SaaS company need one?
Every SaaS company needs a nominee director during incorporation and until at least one founder becomes a resident director through Employment Pass.
