Looking for a local manager for a sole proprietorship

[jefletworld]

Hi everybody,

I'm setting up a sole proprietorship and I will need a local manager (as I don't live in Singapore): either a Singapore Citizen or Singapore Permanent Resident.

Would you have some advice on the best way to find one?

Thanks for your answers

Looking forward to hearing from you

Best regards
Jeff

[Strong Eagle]

What you are asking for is pretty much in the same vein as picking up a nominee director. The person who takes the job is liable and personally responsible for the actions of the company or business.

Business carried on by local managers
25.—(1) In any case in which any individual, or all the partners of any firm, or all the directors, the managers and the secretary of any corporation required under this Act to be registered reside outside Singapore, and the business of the individual, firm or corporation is carried on in Singapore in the name of the individual, firm or corporation by a local manager, the local manager shall be personally responsible for the discharge of all obligations attaching to the individual, firm or corporation under this Act.
[5/2005 wef 11/04/2005]
(2) In the case of any default in respect of any such obligation referred to in subsection (1), the local manager shall be subject to the same responsibilities, liabilities and penalties as the individual in whose name he carries on the business, or as a partner in the firm, or as a director, manager or secretary of the corporation, as the case may be, and all the penal and other provisions of this Act shall be construed accordingly.

You might call around to various CPA's and accounting firms in Singapore... they usually have contacts into people who are willing to stick their necks out for a fee (my accountant no longer offers this service).

[jefletworld]

Thanks a lot for the information!

So maybe it's better to set up a Pte Ltd Company?

[Strong Eagle]

Thanks a lot for the information!

So maybe it's better to set up a Pte Ltd Company?

Well... a Pte Ltd definitely has more "gravitas" in getting bank accounts opened and that sort of thing. It might also be easier to hire a nominee director as opposed to a local manager... but I don't have any hard data on that. OTOH, a pte ltd costs more to set up, and will cost more to report it annually than a SP.

Either way, though, payments made to you as a foreigner, will be subject to withholding tax, which I believe is 20 percent. I say this because you wouldn't be earning income but rather taking it as consulting fees (as a SP) or directors fees as a pte ltd.

I should warn you that this is not my area of expertise, and particularly in the areas of tax matters, you need an accountant who is well versed in foreign owners/directors.

[priscillawzy]

Use a job board instead of this forum.

-Moderator

[PNGMK]

I'll do it (SPR here) but only if I have complete control of the local bank accounts and signing authority for tax returns, business registration etc. All invoicing will have to done via myself and no funds will be remitted to you unless we have enough on hand for all liabilities due (tax, cpf, bills).

You'll be subordinate to me in the structure but you'll have the 'golden share' (>51%). I'll be the Company MD and you'll be a Company ED.

We can do a PTE LTD only.

[ecureilx]

Use a job board instead of this forum.

-Moderator

but her Facebook post still appears here

[Strong Eagle]

Use a job board instead of this forum.

-Moderator

but her Facebook post still appears here

Ahh... the joys of using DoNotTrackMe... I don't see any of that nonsense.

[Strong Eagle]

I'll do it (SPR here) but only if I have complete control of the local bank accounts and signing authority for tax returns, business registration etc. All invoicing will have to done via myself and no funds will be remitted to you unless we have enough on hand for all liabilities due (tax, cpf, bills).

You'll be subordinate to me in the structure but you'll have the 'golden share' (>51%). I'll be the Company MD and you'll be a Company ED.

We can do a PTE LTD only.

This is the only way I would do it as well, and PNGMK's post points out the perils of being someone's "nominee director" or "nominee manager"... you are on the hook for the misdeeds or omissions of the actual owner/manager.

Usually, both the nominee director and the actual owner both hold undated letters of resignation. The owner dates a signed resignation letter if and when they have concerns about the director, and the director dates a letter to predate any misdeeds committed by the owner. But it's still a dangerous mess for someone who commits to being a nominee director, and I wonder how outfits like Janus protect themselves... except they offer a nominee director only until a person gets their EP, at which time they become the director.