What are the key responsibilities of a company resident director?

In Singapore, every company is required to have at least one resident director. A resident director must be a Singapore resident, which means they can be either a Singapore citizen, a Singapore permanent resident, or someone holding an Employment Pass. The role of a resident director is critical as they are responsible for ensuring that the company complies with all legal and regulatory requirements in Singapore.

Some key responsibilities of a resident director include:

1. Compliance: The resident director must ensure that the company operates within Singapore laws and regulations. They are responsible for filing tax returns, financial
statements, and other legal documents on time.

2. Corporate Governance: The resident director plays a crucial role in upholding good corporate governance practices. They are responsible for making informed and
ethical decisions on behalf of the company, acting in the best interest of shareholders and stakeholders.

3. Local Presence: Having a resident director ensures that the company has a local presence and someone who understands the local business environment, culture, and
regulations. This can be beneficial for building relationships with local partners, suppliers, and clients.

4. Accountability: The resident director is legally accountable for the company’s activities and may be held personally liable for any non-compliance or misconduct. They should ensure that the company operates ethically, avoids conflicts of interest, and maintains proper financial records.

While a resident director is a legal requirement, it’s important to choose someone who is capable, trustworthy, and knowledgeable about your business operations. They should have a solid understanding of Singapore corporate laws and be able to fulfill their responsibilities effectively.

What if foreign businesses intend to expand its presence in Singapore, but do not have a resident director at the time of incorporating a new company? You may visit our article on “APPOINTING A NOMINEE RESIDENT DIRECTOR” for more information!

18 December 2023