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Why Companies Need A Local Director To Operate In Singapore

Director It is a straightforward process to register your company in Singapore as a foreigner if you have met all of the necessary requirements. It is an opportunity that many foreign investors are looking for now that the Lion City is a prime investment hub in Asia and the entire world.

When going through the company registration process, you will be tasked to get a local director. But have you ever wondered why this is the case? If not, we have the right information for you.

What the Law Says director

One of the statutory requirements when registering a Singapore company is to have a minimum of one local director in Singapore. The law is very clear on this matter and the government even goes a step further to provide one in the event that the company is run from overseas.

As such, any company that fails to follow this guideline will not be registered. And if it dismisses a local director after the registration, then it risks closure and even prosecution in a court of law.

The Contract of a Local Director

The terms of involving a Singapore resident director varies depending on many factors. Usually, they are engaged on an annual basis, although other companies hire them on a short-term basis. This depends on whether or not you have the intention to relocate your business to Singapore. It will depend on whether you intend to get an entry pass or a resident permit. You can find more information from the official source to understand how to get these permits.

The Roles of Local Directors in Singapore director

Provide directions – One of the main roles of the local directors is to manage the affairs of the company on a daily basis. This caps all of their roles. According to ACRA, they should work for the company and make objective decisions with diligence.

Planning and convening the AGM – The annual general meeting is crucial for any company. The local director is directly responsible for deciding on the date, agenda, of day-to-day operations, and leading the meetings.If there are any amendments, the local director will use their decision-making powers through consultation with the investors and authorities to amend them.

Filing returns – All companies in Singapore are required to file the returns according to the local laws. A local director is in an excellent position to understand the taxation procedures in the country. As such, they should take a lead role in ensuring that the accounting department does the right thing. If there is a discrepancy, the Singapore authorities will come straight to the director to clarify it.


There are many other roles of the local directors in Singapore. They include ensuring the social responsibility of the company and corporate governance. If you are planning to start a company here, now you know why you need one.

Abubakar is a writer and digital marketing expert. Who has founded multiple blogs and successful businesses in the fields of digital marketing, software development. A full-service digital media agency that partners with clients to boost their business outcomes.
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