Nominee director in Singapore (2026): Requirements, fees and rules explained

What is a nominee director

A nominee director is an individual appointed to act as the director of a company on behalf of another individual (the business owner) or entity. A Singapore nominee director is the face of the company in the country and primarily exists to fulfil legal and regulatory requirements laid out in the Companies Act. Nominee directors have no involvement in the company's day-to-day business, hence they are also sometimes referred to as ‘sleeping directors’ or ‘inactive directors’. 

Why do you need a nominee director in Singapore in 2026

Under the Companies Act, every Singapore-incorporated company must have at least one director who is ordinarily resident in Singapore. If you do not have a resident director or a nominee director in Singapore, ACRA will not register your company. 

Apart from being important from an incorporation perspective, a nominee director is an essential member of your board. They have the knowledge to make sure your business does not break any rules or regulations, especially if you are operating in a foreign country for the first time.

What is the role of a nominee director in Singapore companies in 2026

A nominee director's duty, first and foremost, is to act in the best interests of the company and to ensure it complies with Singapore laws at all times.

Who can be a nominee director in Singapore in 2026

Under the Companies Act, a Singapore nominee director must:

•     Be a Singapore citizen, a Singapore Permanent Resident, or hold a valid Employment Pass (EP).

•     Have a permanent residential address in Singapore.

•     Be 18 years of age or older.

•     Be assessed as ‘fit and proper’ by the appointing CSP, a requirement introduced under the CSP Act 2025, effective 9 June 2025.

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Note: an EP holder can only be appointed after the company is incorporated, as the business must first exist to sponsor the EP.

Who cannot be a nominee director

A person cannot be a Singapore nominee director if they are:

•     An undischarged bankrupt.

•     Convicted of a crime involving fraud or dishonesty carrying a prison sentence of more than three months.

•     Convicted of three or more ACRA filing offences.

•     Involved with three or more companies that ACRA struck off its register within five years.

•     Disqualified due to the company winding up on grounds of national interest or security.

•     Disqualified as an unfit director of an insolvent company.

•     Disqualified for failing to file tax returns.

Regulatory updates (2025-2026): What changed

The regulatory environment for nominee directors changed significantly in mid-2025. Two key pieces of legislation now apply:

CSP Act (effective 9 June 2025)

Under the Corporate Service Providers (CSP) Act 2024, all businesses providing nominee director services must now be registered with ACRA as a Corporate Service Provider (CSP)⁵.

•      for any person to act as a nominee director ‘by way of business’ unless their appointment is arranged through a registered CSP.

•     The CSP must conduct a fit and proper assessment of every nominee director before appointment.

•     Acting as a nominee director without a CSP arrangement carries a fine of up to SGD $10,000.

•     A CSP that arranges an unvetted nominee director faces fines of up to SGD $100,000.

•     Operating as an unregistered CSP can result in a fine of up to SGD $50,000 and/or up to 2 years' imprisonment.

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In plain terms, you can no longer ask a friend, employee, or business associate to be your nominee director informally. The appointment must go through a licensed, ACRA-registered CSP.

CLLPMA Act (effective 16 June 2025)

Under the Companies and LLP (Miscellaneous Amendments) Act 2024, all Singapore companies are now required to⁶:

•     Maintain a private Register of Nominee Directors (ROND) at their registered office.

•     Submit nominee director and nominator details to ACRA's Central Register via BizFile. 

•     New companies incorporated on or after 16 June 2025 must file this information at the time of incorporation.

•     File any updates to the ROND with ACRA within 2 business days of any change.

•     The nominee director's status is publicly visible in the company's business profile. The nominator's identity remains confidential, accessible only to public agencies such as ACRA and law enforcement.

•     Penalties for register non-compliance have increased from SGD $5,000 to SGD $25,000 per breach.

When do you need a nominee director

There are two main scenarios for appointing a Singapore nominee:

•     You are a foreign founder who wants to incorporate in Singapore but does not have a locally resident director available. Rather than finding someone you know, which is now legally restricted, you must engage a registered CSP.

•     You wish to maintain privacy. Even Singapore residents sometimes prefer not to have their names appear as directors on public records. Note: nominee status is now publicly disclosed under the 2025 rules, though the nominator's identity stays confidential.

How to appoint a nominee director in Singapore

Nominee directors providing services commercially must be appointed through an ARCA-registered Corporate Service Provider (CSP).Most CSPs offer nominee director services as part of a company incorporation or compliance package, which can be more convenient than arranging services separately.

When choosing a provider, look for:

• ACRA registered CSP status
• A clear written nominee director agreement
• Transparent pricing with no hidden fees
• Experience handling incorporation and compliance for foreign founders

Appointing a nominee director now involves the following steps:

1.  Engage the CSP to arrange the nominee director.

2.  Complete the CSP's due diligence process. The CSP will conduct KYC checks and assess the nominee director as fit and proper.

3.  Sign a nominee director agreement. A formal written contract that must:

• Give a detailed account of the responsibilities and powers of the nominee director.
• Clearly state the nominee has no operational role or independent decision-making authority.
• Include the preferred method of resolving a dispute should one arise.
• Provide the service period of the nominee director.
•  Cover any other terms of agreement (e.g. fees, security deposit, background checks).

4.  File with ACRA via BizFile. The appointment must be filed within 14 days. For new incorporations, this is done at the time of incorporation.

5.  Update the Register of Nominee Directors (ROND). The company must maintain this register and submit it to ACRA's Central Register. Any subsequent changes must be filed within 2 business days.

Apart from being detailed and precise, the agreement must be written in simple language to leave no room for ambiguity. 

If a corporate services provider is involved, they will likely provide you with the agreement. Business owners are advised to review it thoroughly before signing.

Register of Nominee Directors (ROND): What must be recorded after appointment

Once appointed, the nominee director's details must be entered in the company's Register of Nominee Directors (ROND). This must include:

•     Full names (and aliases if any), residential and official addresses, nationalities, identity card numbers, dates of birth, and date of nomination.

•     The nominator's details, including name, address, and Unique Entity Number (UEN) if the nominator is an entity.

•     This information must also be submitted to ACRA's Central Register via BizFile. Any changes must be filed within 2 business days.

•     ACRA can request an inspection at any time. Failure to maintain the register or produce it on request can result in fines of up to SGD $25,000 per breach, up from the previous SGD $5,000.

Risks involved in hiring a nominee director in Singapore 

Despite holding a non-executive position, a nominee director carries the same statutory responsibilities as any other director under the Companies Act. Risks run both ways.

For the company

•     If the nominee director fails to meet statutory duties, the company can face compliance failures and fines.

•     Choosing an unverified or non-CSP-arranged nominee exposes the company to serious regulatory and legal risk under the CSP Act 2025.

For the nominee director

•     If the company breaks the law, the nominee director can be held personally accountable, even if they had no direct involvement.

This is precisely why the 2025 CSP Act introduced mandatory 'fit and proper' assessments to protect both companies and nominees from misuse of the arrangement.

How much are Singapore nominee director fees in 2026

A nominee director in Singapore is not paid the same salary as a regular director. Nominee director fees in Singapore range from SGD $1,000 to SGD $5,000 per year. They are also not entitled to Central Provident Fund (CPF) contributions. Instead, they receive a service fee.

Additional charges may apply for activities beyond standard compliance duties, such as attending meetings, signing non-routine documents, or handling special corporate actions.

Some Corporate Service Providers (CSPs) may also request a refundable security deposit to cover potential regulatory penalties arising from late or incorrect filings.

It is advisable to request quotes from multiple CSPs, as fees and service scopes vary. Many providers offer bundled packages that include nominee director services, company secretary support, and a registered address, making them more cost-effective for new businesses.

Can a nominee director quit or be replaced

Yes. A nominee director can step down by submitting a letter of resignation, and the company can also remove them if a replacement is available or if a dispute arises. However, Singapore law requires every company to have at least one local resident director at all times, so a replacement must be appointed before the nominee leaves.

Many founders use nominee directors as a temporary arrangement. You may replace the nominee director when:

• You relocate to Singapore and become an ordinarily resident director
• You hire a Singapore resident employee who qualifies as a director
• You bring in a Singapore-based co-founder or partner

Some companies also keep nominee directors long-term, which is acceptable as long as the arrangement remains compliant and properly documented.

Nominee director vs director

A nominee director and a regular director share the same regulatory responsibilities. But when it comes to managerial duties and decision-making, their roles are vastly different.

Nominee director vs nominee shareholder

When you appoint a nominee director, they act as the director on your behalf. When you appoint a nominee shareholder, they act as the registered owner of your shares. In both instances, you retain full control and can keep your ownership confidential.

Nominee directors typically do not own shares, so as to maintain a limited role and avoid conflicts of interest. 

Manage your Singapore business finances with Aspire

Once your company is incorporated and a nominee director is in place, the next step is to set up the appropriate financial infrastructure.

Aspire offers all-in-one financial tools for businesses in Singapore, including multi-currency accounts, global payments, and expense management in a single platform.

With an Aspire Business Account, you can:

• Send and receive international payments in multiple currencies
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