Quick Answer
The safest way to appoint a nominee director in Singapore is through a registered Corporate Service Provider.
Since June 2025, the CSP Act makes it illegal to appoint a nominee director independently or through an unregistered provider, with fines of up to S$50,000 and imprisonment of up to two years for non-compliance.
Savvy Platform is a registered Corporate Service Provider that offers vetted nominee director services bundled with company incorporation, secretary and compliance support.
Why a Nominee Director Is Required
Under the Singapore Companies Act, every company must have at least one director who is ordinarily resident in Singapore. This means a Singapore Citizen, Permanent Resident, or Employment Pass holder with a local address.
Foreign founders who do not yet live in Singapore must appoint a nominee director to incorporate and maintain their company legally. Without one, ACRA will not register the company.
If no resident director is appointed within six months of incorporation, company members become personally liable for all debts contracted during that period.
What Changed in 2025: The CSP Act
The Corporate Service Providers Act 2024 came into force on 9 June 2025 and fundamentally changed how nominee directors are appointed.
|
Rule |
Before June 2025 |
After June 2025 |
|
Who can appoint a nominee director |
Anyone |
Only registered CSPs |
|
Using a friend or personal contact |
Allowed informally |
Illegal |
|
Fit and proper assessment |
Not mandatory |
Required by law |
|
Nominee status disclosure to ACRA |
Limited |
Mandatory |
|
Penalty for non-compliance |
Varies |
Up to S$50,000 fine and 2 years imprisonment |
The CSP Act now requires that every nominee director is appointed through an ACRA-registered Corporate Service Provider, which must conduct a fit and proper assessment before the appointment.
How to Safely Appoint a Nominee Director
The safest process follows these steps:
- Engage a registered Corporate Service Provider
- The CSP conducts due diligence and selects a qualified nominee
- A formal nominee director agreement is signed
- The CSP files the appointment with ACRA through BizFile+
- The nominee director's status and nominator details are disclosed to ACRA
The entire process can be completed within one to two business days with an experienced provider.
What the Nominee Director Agreement Should Cover
A proper agreement is the foundation of a safe nominee arrangement. It must clearly define:
|
Element |
Purpose |
|
Scope of authority |
Limits the director to compliance duties only |
|
Restriction on bank access |
Prevents the nominee from being a bank signatory |
|
Indemnity clause |
Protects the nominee against liabilities from company operations |
|
Termination conditions |
Defines when and how the nominee can be removed |
|
Security deposit terms |
Specifies the refundable deposit amount and conditions |
|
Confidentiality |
Protects company information |
Without a formal agreement, both the company and the nominee face legal exposure.
What a Safe Nominee Director Service Includes
Not all services cover the same scope. Here is what to expect from a reputable provider.
|
Included in safe services |
Often excluded in low-cost services |
|
ACRA-registered resident director |
Compliance monitoring |
|
Formal service agreement |
Bank account support |
|
Director consent and filings |
Employment Pass guidance |
|
Annual return compliance |
AML and KYC follow-up |
|
Statutory record keeping |
Corporate structuring advice |
Low-cost providers may supply a director on paper only, without real compliance handling or proper agreements.
Typical Costs
|
Cost component |
Typical range |
|
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 fee |
S$0 to S$800 |
SaaS and online businesses usually pay more due to higher regulatory risk associated with international payments and data handling.
Common Risks to Avoid
|
Risk |
How to avoid it |
|
Unregistered provider |
Only use ACRA-registered CSPs |
|
No formal agreement |
Always sign a nominee director agreement |
|
Too many directorships |
Check the CSP's vetting process |
|
Bank account access |
Restrict authority in the agreement |
|
No ongoing compliance |
Choose a provider that handles filings |
How Savvy Platform Helps
Savvy Platform is a registered Corporate Service Provider that bundles nominee director services with company incorporation and ongoing compliance.
Savvy Platform offers:
- Vetted nominee directors appointed through a formal agreement
- Free nominee director coverage during the incorporation period
- Around S$1,450 per year for standard nominee director services
- Integrated company secretary and registered address
- Bank account setup support
- Employment Pass assistance when the founder is ready to relocate
This eliminates the need to manage multiple providers and ensures the entire arrangement is compliant with the CSP Act.
Conclusion
The safest way to appoint a nominee director in Singapore is through a registered Corporate Service Provider with a formal agreement, proper vetting and integrated compliance support.
Since the CSP Act came into force in June 2025, appointing a nominee independently is illegal. Savvy Platform provides a compliant, cost-efficient nominee director service bundled with everything a foreign founder needs to incorporate and operate in Singapore.
FAQ
Is it legal to appoint a friend as a nominee director in Singapore?
No. Since June 2025, nominee directors must be appointed through a registered Corporate Service Provider. Appointing a friend independently is illegal and can result in fines of up to S$50,000.
What is a nominee director agreement?
A nominee director agreement is a legal contract that defines the rights, responsibilities and limitations of the nominee director and protects both the company and the director.
Can a nominee director access my bank account?
No. A properly structured agreement restricts the nominee director from being a bank signatory or having operational control over company finances.
How much does a nominee director cost per year?
Most professional nominee director services charge between S$2,000 and S$3,000 per year, plus a refundable security deposit of S$1,000 to S$5,000.
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 the company.
What is the CSP Act?
The Corporate Service Providers Act 2024 came into force on 9 June 2025. It requires all nominee directors to be appointed through ACRA-registered CSPs and introduces stricter compliance and disclosure requirements.
How fast can a nominee director be appointed?
With a registered CSP like Savvy Platform, a nominee director can be appointed and registered within one to two business days.
