Learn how using a nominee director can help protect your privacy while staying fully compliant with UK corporate transparency laws and PSC requirements.

In today’s increasingly connected and transparent world, entrepreneurs and investors are more visible than ever. While corporate transparency is crucial in combating financial crime, there are legitimate and lawful reasons why a company founder or shareholder may wish to maintain a degree of privacy.

For business owners in the UK, one solution that strikes a balance between privacy and compliance is the appointment of a nominee director.

What is a Nominee Director?

A nominee director is an individual appointed to act as a director of a company on behalf of another person—the actual controller or beneficial owner. They are listed on public company records, but their role is limited to that of a representative. They do not engage in the daily management of the business unless otherwise agreed.

This arrangement can provide a layer of privacy while still respecting all legal and transparency obligations.

Is It Legal to Use a Nominee Director?

Yes. The use of a nominee director is entirely legal in the UK—as long as it is done in accordance with the Companies Act 2006 and associated compliance rules. It is not a loophole or method for concealment. In fact, nominee structures are commonly used for:

• International business structuring
• High-profile individuals seeking discretion
• Family offices and investment vehicles

The key requirement is transparency behind the scenes. While the nominee’s name appears in the public record, the true controller must still be disclosed privately through the Register of People with Significant Control (PSC).

Why Might You Want to Protect Your Identity?

There are several legitimate reasons for entrepreneurs to shield their personal identity from the public domain:

• High-net-worth individuals may want to avoid public association with multiple companies to reduce unsolicited offers, fraud risk, or media attention.
• Entrepreneurs testing ideas may prefer not to publicly connect early ventures with their personal or professional reputation.
• Individuals in politically sensitive environments may need discretion when forming UK companies to avoid undue scrutiny in their home jurisdictions.

Using a nominee director can help achieve this without violating any laws—provided the correct disclosures are made to Companies House and all other legal obligations are met.

Compliance with the PSC Register

While nominee directors may appear in public records, UK law still mandates that all companies identify and report their Persons with Significant Control (PSCs). A PSC is typically someone who:

• Owns more than 25% of the company’s shares
• Holds more than 25% of voting rights
• Has the power to appoint or remove a majority of the board
• Exerts significant influence or control over the company

This information must be recorded in the PSC register and submitted to Companies House, even if a nominee is appointed. Non-disclosure or inaccurate filing can lead to criminal penalties, including fines or director disqualification.

Responsibilities of Nominee Directors

Nominee or not, a director registered with Companies House is legally responsible for fulfilling duties under UK law, including:

• Acting in good faith and in the best interests of the company
• Avoiding conflicts of interest
• Keeping accurate records and ensuring timely filings

A nominee must be a trustworthy, informed individual—not just a figurehead. The nominee relationship should be formalised in a written agreement that clearly outlines their role, responsibilities, and limitations.

Best Practices for Privacy-Conscious but Compliant Use

If you are considering using a nominee director to protect your identity, here are a few essential steps:

1. Work with a reputable UK service provider with experience in corporate compliance.
2. Create a nominee director agreement that outlines terms and responsibilities.
3. Accurately file PSC information with Companies House.
4. Avoid offshore or informal nominee arrangements that could breach UK AML laws.
5. Seek legal advice if your company has a complex or international structure.

Final Thoughts

Protecting your identity as a business owner is not only understandable—it’s also legally achievable when done correctly. The nominee director arrangement offers a structured, compliant way to maintain discretion while adhering to the UK’s strong corporate transparency standards.

The message is clear: privacy is permitted, secrecy is not. By appointing a nominee director responsibly and disclosing your control as required, you can enjoy both legitimate privacy and full compliance under UK law.