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Singapore requires foreign companies to have at least one resident director; nominee arrangements are common but involve legal liabilities and governance considerations, especially during early-stage regional expansion.

Singapore’s Residency Requirement for Companies

Singapore mandates that every locally incorporated company must have at least one director who is ordinarily resident in the country. This rule applies universally, whether the company is active, dormant, generating revenue, or wholly foreign-owned. For foreign investors without local management, this requirement impacts various processes such as company incorporation, licensing, banking setup, and initial commercial activities, influencing timelines and operational planning.

Timing Challenges and Nominee Arrangements

Company registration in Singapore can often be completed within a few days, but securing Employment Pass approval may take several weeks. During this interim, foreign companies frequently use nominee arrangements to facilitate leasing, supplier contracts, payroll, and banking arrangements. These arrangements enable operational continuity and regional invoicing while the company’s infrastructure is still being established.

The Role and Risks of Nominee Directors

Singapore law allows the use of nominee directors, commonly adopted by foreign firms during early expansion phases. However, nominee directors are not passive placeholders—they hold legal responsibilities and fiduciary duties as directors, regardless of private side agreements. Properly structured governance involves separating statutory responsibilities from operational control, ensuring that decision-making power remains with the beneficial owner through documented arrangements.

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Hidden door handles are widely used in modern cars in China, with around 60% of the top 100 best-selling new energy vehicles, including EVs and hybrids, having them.

The minimalist design gives vehicles a “sleek look and reduces wind drag” but can be confusing to use, car industry analyst Stephen Dyer from consultancy AlixPartners told the BBC.

“Even I often find it difficult to locate the switch to open the door from the inside of an unfamiliar vehicle,” said Dyer, who is based in Shanghai.

But beyond their usability, the handles have been blamed for endangering the lives of drivers and passengers.

Electronically powered door handles became an industry trend, but raised “real safety concerns” when doors failed to open promptly, delaying rescue efforts after accidents, said Nanyang Technological University associate professor Lyu Chen.

“A door handle may seem simple, but it becomes safety-critical in the seconds after a crash,” Chen said.

Chinese carmaker Xiaomi faced intense scrutiny following two fatal crashes in 2025 involving its SU7 model, when suspected electrical failures allegedly trapped occupants.

One of the incidents took place on a highway in Tongling city, eastern China, killing three people, according to regional news coverage cited by state-controlled media Global Times.

Relatives of the victims said the passengers were stuck in the car as the vehicle’s doors could not be unlocked after the collision, the outlet said.

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