Mobile app/platform (similar to uber)

[Goldy740]

Hi all, a friend (developer) and i have got what we believe to be a strong business plan for an app/platform focussed purely on singapore.

We are both foreigners, he is on a visitors pass but is likely to be getting an SP or EP soon (currently he is consulting for foreign companies and earning money back in his homeland of iceland)
I am on an DP/LOC working for my company (EP was rejected).

To setup this new company we would need a local 'nominee director' correct? Needs to be a resident or a PR i believe.
We would need to open an account with a local bank.
We would need to have a company secretary within 6 months of incorporating the company.

Could me and my friend be foreign directors and shareholders if we have have work passes attached to other companies? There is no overlap whatsoever in terms of business activities.

My concern is that if we set this company up and it is successful and we only have one nominee director we have no control over the business of the revenues it generates...

[Strong Eagle]

Hi all, a friend (developer) and i have got what we believe to be a strong business plan for an app/platform focussed purely on singapore.

We are both foreigners, he is on a visitors pass but is likely to be getting an SP or EP soon (currently he is consulting for foreign companies and earning money back in his homeland of iceland)
I am on an DP/LOC working for my company (EP was rejected).

To setup this new company we would need a local 'nominee director' correct? Needs to be a resident or a PR i believe.

You would need a nominee director to begin with. Your partner on EP could not become a director. You on LOC could become director after you dump LOC... you need to read my threads about what it takes to do this. Once you are director, you could dump rented director.

We would need to open an account with a local bank.

Not mandatory but essentially required for doing business... so, YES.

We would need to have a company secretary within 6 months of incorporating the company.

Yes. If two or more directors then a director can be secretary, with only one director, must have outside secretary. As a matter of reality, you need a secretary to properly file all docs if you don't know how.

Could me and my friend be foreign directors and shareholders if we have have work passes attached to other companies? There is no overlap whatsoever in terms of business activities.

My concern is that if we set this company up and it is successful and we only have one nominee director we have no control over the business of the revenues it generates...

You are correct about nominee director. Can do anything and everything to the company.

You are not a foreign director if you have a work pass because you are resident in Singapore. But, you cannot be on EP and be a director of another company... only the company for which the EP was issued.

Anyone can be a shareholder.

[Goldy740]

So the reality is that you need to find someone you trust who is a PR or a singaporean citizen to be a nominee director...?

I.e. by friends girlfriend is singaporean so she could potentially be the nominee director.

[Strong Eagle]

So the reality is that you need to find someone you trust who is a PR or a singaporean citizen to be a nominee director...?

I.e. by friends girlfriend is singaporean so she could potentially be the nominee director.

Yes - she could be a director. There is no such thing as a "nominee" director. You are either a director or you are not.

You cannot give up duties and responsibilities of a director as specified in the companies act. Therefore, your friend's girlfriend is legally accountable for anything you do or don't do in the company.

Fail to file annual reports on time? She is responsible. Fail to file tax returns? She is responsible. Fail to keep proper minutes and records of directors resolutions? She is responsible. Violate any provisions of the companies act? She is responsible. You commit a criminal act? She is responsible. Company is sued for fraud? She is personally liable.

This is why most people refuse to be a director of a company for which they are not personally involved. Companies that will rent you a director will insist on seeing monthly bank statements. They will handle all your accounting. They will handle all your EP applications. They want to protect themselves.

[DanielBrody]

I would also like to know more regarding this topic

[JessNGC]

Most of the accounting firms in Singapore provide nominee directors as one of their services. That's one option you can consider if you are a foreigner setting up companies in Singapore. The charges are quite high though...at least a few thousand dollars per year. The risk to the directors can be quite high as directors are liable for any breaches of the law..

[ecureilx]

I would also like to know more regarding this topic

Which topic precisely ?

[archcherub]

Hi all, a friend (developer) and i have got what we believe to be a strong business plan for an app/platform focussed purely on singapore.

We are both foreigners, he is on a visitors pass but is likely to be getting an SP or EP soon (currently he is consulting for foreign companies and earning money back in his homeland of iceland)
I am on an DP/LOC working for my company (EP was rejected).

To setup this new company we would need a local 'nominee director' correct? Needs to be a resident or a PR i believe.
We would need to open an account with a local bank.
We would need to have a company secretary within 6 months of incorporating the company.

Could me and my friend be foreign directors and shareholders if we have have work passes attached to other companies? There is no overlap whatsoever in terms of business activities.

My concern is that if we set this company up and it is successful and we only have one nominee director we have no control over the business of the revenues it generates...

would u be able to approach Spring Singapore for help?