Learn what nominee director services are, when to use them, and how to ensure full compliance with UK company law and PSC transparency rules.

Forming a company in the United Kingdom is a relatively straightforward process. However, for international entrepreneurs, high-net-worth individuals, and corporate investors, one of the most common challenges is meeting the legal requirement of appointing at least one company director.

That’s where nominee director services come in. These services offer a practical and fully compliant way to appoint a director for your UK company—while protecting privacy, ensuring local representation, and meeting statutory obligations under UK law.

What Is a Nominee Director?

A nominee director is an individual appointed to appear as the official director of a company in public records, such as Companies House. However, they are not involved in the day-to-day management of the business unless otherwise agreed. Instead, they act on behalf of the beneficial owner—the person or entity who controls or benefits from the company.

Nominee director services are particularly useful in scenarios where the beneficial owner prefers not to be publicly listed or when the company needs local representation in the UK.

Are Nominee Director Services Legal in the UK?

Yes—nominee director services are legal in the UK, provided they are used transparently and in compliance with UK company law, including:

• The Companies Act 2006
• The Register of People with Significant Control (PSC Register)
• The Money Laundering Regulations 2017

The key requirement is transparency: nominee directors must not be used to conceal ownership, mislead regulators, or evade tax. The true beneficial owner must be identified in the PSC Register and disclosed to Companies House.

When Should You Use Nominee Director Services?

What Are the Legal Responsibilities of a Nominee Director?

Nominee or not, all directors listed on the register are legally accountable under the Companies Act 2006. Their duties include:

• Acting in good faith and in the best interests of the company
• Avoiding conflicts of interest
• Exercising reasonable care, skill, and diligence
• Ensuring compliance with statutory filings and obligations

This means that a nominee director must be competent, informed, and willing to assume legal responsibility—even if they do not make business decisions.

What Should Be Included in a Nominee Director Agreement?

To protect both parties, a nominee director agreement should outline:

• That the director acts solely on behalf of the beneficial owner
• That no business decisions are made without the owner's written instruction
• The scope of responsibilities (or limitations thereof)
• Confidentiality clauses
• Indemnities and conditions for resignation or replacement

This agreement should be signed and securely retained as part of the company’s internal governance records.

Compliance and the PSC Register

Under UK law, all companies must maintain and file a Register of People with Significant Control (PSC). This means that even if you appoint a nominee director, the actual person who controls the company must be disclosed.

Failure to submit accurate PSC information can lead to criminal penalties, including fines and potential disqualification from acting as a director.

Choosing a Nominee Director Service Provider

Always choose a service provider that:

• Is based in the UK or familiar with UK company law
• Offers legally binding nominee agreements
• Complies with AML and KYC due diligence
• Maintains professional indemnity insurance
• Provides transparent pricing and reliable support

Avoid offshore or unregulated nominee providers, as these may expose your business to legal and reputational risk.

Final Thoughts

Nominee director services are a valuable tool for legally forming and operating a UK company, especially for international founders or privacy-conscious investors. But with this flexibility comes responsibility—full compliance with UK law is essential.

By working with trusted providers and ensuring transparency through proper documentation and disclosure, you can benefit from the advantages of a nominee structure without compromising your legal standing.

Whether you're launching a startup, managing a holding company, or building an international corporate presence, nominee director services may be the right strategic step—when done the right way.