PLC and nominee director responsibilities & status

[jsompinm]

I'm planning to come Singapore and set up business with my friend being the nominee director for the plc. She is Singaporean citizen, but i'm wondering does that affect her legal etc. status somehow? In reality i will be 100% responsible for the operations of the biz, but just wondering as my friend will be working somewhere else in a normal job simultaneously.

[Strong Eagle]

You really need to read these two threads.

http://forum.singaporeexpats.com/ftopic38927.html

http://forum.singaporeexpats.com/ftopic78558.html

Fact is, unless you fall into a fairly narrow category of business professional, and have a proven track record in your business, MOM may well view your incorporation as a way to get around the Entrepass and will not issue you an EP.

Read the threads and come back with questions.

[jsompinm]

Thanks Strong Eagle. I kind of guessed someone will be point me to a thread with similar questions sooner or later I'll have a look on those more carefully.

I do actually have a proven track record from an existing business + university masters degree, but the nature of my business is so that i would not be hiring local people, which would be required with entrepass renewal after the first year.

[biztreesg]

Hi, Is normal to appoint someone else to meet the law requirement to set up company in singapore .

As you mention will there be caused any problem with your local friend:
- at first if your local friend engaged with another employment, please as him to check his letter employment because some of the local company doesnot allow their employee hold any directorship

In the eyes of law , director is the one who fully responsibile for the company if anything went wrong... so you must be lucky have such a great friend here...

Well, to avoid him to get into any problem you may use his name to set up first and apply employment pass for yourself at later part... Once you got you employment pass then you can become director .. and remove your friend resposibility....

[jsompinm]

Okay, i'm in Singapore now and figuring out all the things related to setting up a business. I went up to ACRA office and they gave me information that they strongly encourage to have an approval from MOM for EP visa before incorporating a business. But one needs a company to apply the EP for you, cannot do it just personally. Is ACRA just trying to bluff me or what?

[Strong Eagle]

Okay, i'm in Singapore now and figuring out all the things related to setting up a business. I went up to ACRA office and they gave me information that they strongly encourage to have an approval from MOM for EP visa before incorporating a business. But one needs a company to apply the EP for you, cannot do it just personally. Is ACRA just trying to bluff me or what?

ACRA is telling you essentially what I told you before. You can spend the money to incorporate but unless you are in a narrow range of businesses, and have a proven track record, MOM won't issue you an EP just because you formed a Singapore company.

But you are correct about one thing... you will need a company in order to apply for the EP... are you ready to spend the money for the company in order to throw the dice on an EP?