Local Director Requirement in Singapore: Complete Guide
One of the core requirements for registering a Singapore private limited company is the appointment of at least one director who is ordinarily resident in Singapore. This ensures that every company maintains a direct and accountable presence within the country. For foreign-owned companies, the requirement can be met by engaging a nominee director, relocating to Singapore, or appointing a trusted local staff member.
This guide outlines who can serve as a local director, the responsibilities associated with the role, and the different ways foreign entrepreneurs can fulfil this requirement effectively.
Table of Contents
Key Takeaways
Every Singapore company must appoint at least one director who is ordinarily resident in Singapore to satisfy a mandatory legal requirement.
Residents who qualify include Singapore Citizens, Permanent Residents, Employment Pass holders, and EntrePass holders.
Foreign founders can meet the requirement in three ways: relocating to Singapore and acting as their own director, appointing a nominee director, or selecting a trusted local staff member or associate.
Local directors have fiduciary and statutory duties, which include acting in the company’s best interests, ensuring legal compliance, and overseeing governance matters.
What Does the Local Director Requirement Mean?
Singapore requires every company to appoint at least one director who is ordinarily resident in the country to ensure regulatory accountability and local legal responsibility.
Under Singapore’s Companies Act, every private limited company must meet several minimum incorporation requirements, including:
- A minimum of S$1 in share capital
- At least one local director (all other directors can be foreigners)
- At least one shareholder (100% foreign shareholding is allowed)
- A local company secretary
- A local registered address
Appointing a Singapore-resident director is therefore one of the mandatory conditions for registering a Singapore company. The purpose of this requirement is simple: Singapore wants every company to have at least one responsible individual within the country who can be contacted by regulators, receive official notices, and take legal responsibility for the company’s compliance.
Who Can Be a Local Director in Singapore?
Basic Requirements
To be appointed as a local director of a Singapore company, the individual must meet the following fundamental legal criteria:
- Be ordinarily resident in Singapore
- Be at least 18 years old
- Be an individual (no corporate directors permitted)
- Be of sound mind
- Not be disqualified from acting as a director
Residency Clarification
To qualify specifically as a local director, the person must be ordinarily resident in Singapore. According to ACRA, the following individuals meet this requirement:
- Singapore Citizens
- Singapore Permanent Residents (PRs)
- Employment Pass (EP) holders
- EntrePass holders
Disqualifications
An individual cannot act as a director if any of the following situations apply:
- They are an undischarged bankrupt without permission from the court
- They have been convicted of offences involving fraud or dishonesty
- They have been disqualified by ACRA for persistent non-compliance, such as failure to file annual returns
- They are subject to a disqualification order issued by the court
- They were involved in companies that were liquidated under wrongful or fraudulent circumstances
A disqualified individual must not take part in the management of a company unless they are legally reinstated.
Roles and Responsibilities of a Local Director
A local director must ensure the company complies with Singapore law, act in the company’s best interests and oversee key governance and statutory obligations.
These duties fall into two main categories:
Fiduciary Duties
Statutory Duties
Powers of a Local Director
Company directors in Singapore are granted authority to act on behalf of the company, except in matters that require shareholder approval under the law or the company’s constitution. The scope of a director’s powers depends on their role:
- Executive directors typically have broad authority, which may include making operational and business decisions, entering into contracts, and managing company funds and property.
- Non-executive or nominee directors usually have limited involvement in daily operations and do not participate in decision-making. Their role is primarily to satisfy the local director requirement and ensure statutory compliance.
For a detailed explanation of director duties, responsibilities, and powers, refer to our comprehensive guide on Singapore company directors.
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Director Requirement in Singapore?
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Ways to Fulfil the Local Director Requirement
Alternative 1: Appoint Yourself
Best for:
What this option allows you to do:
- Act as both founder and resident director of the company
- Control day-to-day operations from Singapore
- Represent the company in dealings with authorities, banks and partners
- Make strategic, financial and operational decisions directly
CorporateServices.com insight:
Alternative 2: Get a Nominee Director
Best for:
What this option allows you to do:
- Satisfy the local director requirement without relocating
- Maintain full operational and strategic control as foreign directors
- Use the nominee as the local point of contact for ACRA, IRAS, and banks
- Keep the company compliant while you operate the business remotely
CorporateServices.com insight:
Alternative 3: Appoint a Trusted Local Contact
Best for:
What this option allows you to do:
- Place formal directorship with someone involved in day-to-day operations
- Combine local oversight with on-the-ground decision-making
- Strengthen governance by aligning management and statutory responsibility
- Transition away from a nominee director once a suitable internal candidate is available
CorporateServices.com insight:
How to Appoint a Local Director in Singapore?
Step 1
Choose the Right Person
Select an individual who satisfies all legal requirements and whom you trust to take on formal director responsibilities. Ensure that the person understands the fiduciary and statutory duties of a director.
Step 2
Get the Director’s Consent
Step 3
Submit the Appointment Through BizFile Plus
Step 4
Notify ACRA of Any Changes
Penalties for Non-Compliance
Directors who fail to meet their legal duties may face civil claims, financial penalties, disqualification, or criminal prosecution in serious cases. Directors who fail to fulfil their legal duties may face serious consequences, including:
- Civil liability: The company may sue the director to recover losses or profits gained through a breach of duty.
- Criminal sanctions: Serious breaches can result in criminal charges, which may lead to fines of up to S$10,000 or, in some cases, imprisonment of up to 2 years.
- Disqualification: ACRA may disqualify a director from holding directorships in Singapore companies for a specified period.
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Founder, Aeternis Asia Pte LtdHow Can We Help With Local Director Requirements in Singapore?
At CorporateServices.com, we make the compliance process simple and hassle-free. Through our CSP platform, you will work with dedicated professionals who can help you secure a reliable nominee director, prepare and submit Employment Pass applications, transfer directorship when you relocate and ensure that all ACRA filings are completed accurately and on time.
With extensive experience supporting international founders, we offer a secure, transparent and efficient process that allows you to focus on growing your business in Singapore.
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