Singapore Company Registration Key Info for Directors to Know!

Things You Need to Know About the Local Director When Registering a Company in Singapore

Registering a company in Singapore is an important step for many entrepreneurs and investors looking to expand their international business. As one of the world’s most competitive business hubs, Singapore attracts a large number of foreign enterprises with its efficient services, transparent legal system, and favorable tax policies.

However, during the registration process, one key role is often overlooked or misunderstood - the Local Director. For individuals or companies planning to establish a presence in Singapore, understanding the responsibilities and requirements of this position is essential.

What Is a Local Director?

According to the Accounting and Corporate Regulatory Authority ACRA, all private limited companies registered in Singapore must have at least one director who is a Singapore citizen, permanent resident PR, or a foreigner holding a valid Employment Pass, S Pass, or other form of legal residency. This local director is commonly referred to as the Local Director.

The main duties of a Local Director include ensuring that the company complies with local laws and regulations, participating in corporate governance decisions, and representing the company in fulfilling legal obligations. It's important to note that the Local Director is not necessarily the actual owner or operator of the company.

Many foreign investors opt to use professional service providers to supply a nominee director to meet registration requirements. While this approach may seem convenient, it also carries certain legal and risk implications, so caution is advised when making such a selection.

The Role of the Local Director in Corporate Compliance

Singapore is known for its strict yet transparent regulatory environment, especially when it comes to corporate compliance. The Local Director is not merely a formal requirement but plays a crucial role in maintaining the company’s compliance status.

For example, if a company submits false tax reports, engages in financial fraud, or violates labor laws, the Local Director may be held jointly liable. In 2025, the Monetary Authority of Singapore MAS tightened its scrutiny of fintech firms, leading to investigations of several startups for non-compliance. In some cases, Local Directors faced fines or even criminal charges due to failure in fulfilling their supervisory responsibilities.

This trend indicates that Singapore will continue to raise its compliance standards, making the role of the Local Director increasingly significant.

How to Choose the Right Local Director

For most foreign investors, personally serving as the Local Director is not practical-especially for those who have not yet settled permanently in Singapore. A common practice is to engage qualified local individuals through professional service agencies to fulfill this role.

When selecting a Local Director, consider the following

1. Legitimacy and Qualifications Ensure the candidate holds valid residency status and has a clean credit record and credible business background.

2. Professional Knowledge and Experience A competent Local Director should be familiar with Singapore’s Company Law, tax regulations, and related legislation, and be capable of offering expert advice when needed.

3. Clear Responsibilities and Contractual Protection Whether hiring a nominee director or appointing a partner, always sign a formal agreement outlining both parties’ rights and obligations to avoid future disputes.

In recent years, with the rise of remote work, more Singaporean companies have adopted digital management practices. Some professional secretarial firms now offer virtual Local Director services, assisting with company registration and annual filings remotely. While these services provide convenience, users should still ensure they are compliant and sustainable.

Impact on Bank Accounts and Financing

When opening a corporate bank account in Singapore, the Local Director is often required to appear in person for identity verification. Some banks also request the director to sign documents and provide proof of residential address. If the Local Director is unwilling or unable to cooperate, this could delay the bank account opening process and affect the company’s financial operations.

Additionally, when applying for loans or financing, banks will assess the background and creditworthiness of the Local Director. An experienced and reputable local director can enhance the company’s credibility in the eyes of financial institutions, thereby improving access to credit support.

Summary

In conclusion, the Local Director is not only a legal necessity but also a critical figure in ensuring smooth and compliant business operations when registering a company in Singapore. Whether you're a small business owner launching your first venture or a large corporation expanding into Southeast Asia, recognizing the importance of the Local Director and choosing carefully is vital.

As Singapore continues to improve its business environment, more international companies are setting their sights on this dynamic market. Only by adequately preparing from the very beginning can you lay a solid foundation for long-term and stable growth.