The Resident Director Requirement in Singapore: Explained Starting a company in Singapore is often seen as quick and efficient. But once you begin the process, certain legal details can feel confusing. One of the most common stumbling blocks for new founders — especially those based overseas — is the resident directo r requirement. It’s not optional. Without a resident director, your company simply can’t be registered. This guide explains what the rule means, why it exists, and how to deal with it in practice. What exactly is a resident director? Singapore law requires that every private limited company has at least one director who is “ordinarily resident” in Singapore. That phrase has a very specific meaning. To qualify, a director must fall into one of these categories: • A Singapore citizen. • A Singapore permanent resident. • An EntrePass holder with a local address. • An Employment Pass holder who lives in Singapore. A resident director must be a real person, not another company. They also can’t be under 18, bankrupt, or barred by the court from acting as a director. It’s worth noting that this is the minimum. A company can have more than one director, and some may live overseas, but at least one must meet the residency rule at all times. Why does Singapore require this? The rule isn’t there to make life harder for foreign entrepreneurs. It’s about accountability. ACRA — the government agency that regulates companies — needs a clear point of contact within Singapore. If something goes wrong, regulators can’t chase a shareholder living halfway across the world. The resident director provides that local link. It’s a way to make sure there’s always someone on the ground who is legally responsible for the company’s actions It also helps protect Singapore’s reputation as a clean, reliable place to do business. Investors and banks know there’s a local person tied to every company. What does a resident director do? There’s often confusion here. People imagine that a resident director has to run the business, make all the decisions, or even own shares. None of that is true. The resident director’s job is about compliance, not control. They share the same legal responsibilities as any other director. That includes: • Making sure annual returns are filed with ACRA. • Ensuring the company keeps proper records. • Acting in good faith and in the company’s best interests. • Making sure the company follows Singapore law. These duties sound simple, but they carry real weight. If the company breaks the rules, directors — including the resident one — can be fined or even banned from acting as directors in the future. That’s why it’s not something to agree to lightly. What if you’re a foreign founder? For Singapore residents starting a business, the requirement isn’t a problem. They can act as their own resident director. But for overseas entrepreneurs, this is often the main obstacle to incorporation. If you don’t live in Singapore and don’t have a local partner you trust, you’ll need outside help. That’s where professional resident director services come in. How professional services work Corporate service firms in Singapore offer what’s often called “nominee director services.” In this arrangement, a qualified local takes on the role of resident director for a fee. The nominee director doesn’t interfere in day - to - day business. They don’t own shares or get involved in your strategy. Their purpose is to satisfy the legal requirement and ensure your company has the necessary local accountability. Usually, these services are provided with safeguards in place. For example, the firm may require a security deposit to cover any risks. The arrangement is structured so that the nominee director isn’t exposed to unnecessary liability, and the business owne r retains full control over operations. The link between resident director and company secretary Singapore law also requires every company to appoint a company secretary within six months of incorporation. The two roles are different but closely connected. The resident director provides the local presence. The company secretary handles the administrative side of compliance: filing annual returns, updating ACRA when directors change, maintaining statutory registers, and recording board meetings. In practice, many firms that provide nominee director services also offer secretarial services as part of a package. This makes sense. If the secretary manages the filings, the resident director doesn’t have to worry about missing deadlines. Both roles sup port each other to keep the company compliant. What happens if you lose your resident director? Imagine your company’s only resident director resigns. At that moment, your company is no longer compliant with the law. ACRA can take action, including fines or even striking the company off the register. Banks and service providers may also freeze accounts if they see that your company no longer meets basic requirements. That’s why it’s critical to always have a plan in place — whether that’s a trusted local partner or a professional service provider. Can a friend or relative be your resident director? Sometimes foreign founders ask a local friend, spouse, or family member to step in. This can work, but it comes with risks. Remember: the resident director is legally responsible for the company’s compliance. If the company fails to file reports or runs in to legal trouble, your friend or relative could be held accountable. This is why many people choose professional services instead. It keeps personal relationships out of a potentially risky arrangement. Practical steps if you’re starting out If you’re planning to register a company in Singapore and you live overseas, here’s how to prepare: 1. Check whether you qualify personally. If you plan to move to Singapore on an Employment Pass or EntrePass, you may be able to serve as your own resident director once your pass is approved. 2. Decide early whether to work with a partner, family member, or professional service. Don’t leave it until the last minute. 3. Make sure you also appoint a qualified company secretary. Many service firms can handle both roles, simplifying the process. Why you shouldn’t ignore the requirement The resident director isn’t just a technicality. Without one, your company won’t even get registered. If you lose your resident director later and fail to replace them, the penalties are serious. It can also harm your business reputation. Banks, investors, and partners expect you to have a stable structure. If they see compliance gaps, they may hesitate to work with you. Final thoughts The resident director requirement may feel like a hurdle, especially if you’re a foreign entrepreneur. But it’s not meant to block you — it’s there to ensure accountability and maintain Singapore’s strong business reputation. Once you understand the rule, the solution is clear. If you’re local, you can act as your own resident director. If not, you can engage a professional. In most cases, pairing a nominee director with proper company sec retary is the smoothest way forward. Handled properly, this requirement becomes just another step in the process. It doesn’t stop you from building and running a successful company in Singapore. It simply ensures that your business has a reliable foundation in the place where it’s registered.