Nominee director service UK – 2023 Guide
23 November, 2022
If you are thinking of starting a new business but you do not feel comfortable with the notion of being on surveillance all the time, hiring our Nominee Director service can be the solution you need.
Before I tell you how we work and why you should work with us, let me explain to you what a Nominee Director is and why you should have one.
A nominee director usually is a person or a company who is listed as a principal office of another company, even when they will have little or any involvement in the actual running of that company.
In case of foreign companies the Professional Director Service is mainly used when the clients want to protect from public disclosure obligation and meet legal compliance to have at least one local resident director.
Usually besides having a Nominee Director the companies use a nominee shareholder, who will enter into an Declaration of trust with the company owner, where it is clarified that he will not have voting right or to negotiate company shares without the consent of the owner thereof.
The most important advantage of using nominee director service is the anonymity it gives some business owners. This means that you can appoint a nominee director or a Company Nominee to be the face of the company. But, you still own your business and are entirely in charge of the company.
Another reason to use Nominee Director Service is if you are an investor from overseas looking to open a business in another country, and you do not want to pay extra taxes or you are looking to avoid double taxes.
In that case you must know that If your name does not appear in the public registry, you can reduce your tax burden.
Not all the companies in all the countries need to hire a Professional Director Service or a resident director. Some big companies prefer to have a local office to act on behalf of them. But many companies prefer to hire this service to comply with these legal duties, because it is a less expensive way to fulfill the legal conditions in the country where they are opening the new branch or office.
Yes, It is completely legal to use a nominee director or a Professional Director, and it is quite common when you prefer to reserve your anonymity from the general public.
His main responsibility is to act on the business owner’s behalf.
He cannot take any decision independently. If he does, he would be in breach of contract and therefore could face legal action against him.
Beside that, he will have some statutory responsibilities:
- To call the mandatory annual assemblies and present the annual declarations before the corresponding organisms.
- To maintain an accurate and up-to-date record of Legal Records.
- To register a local business address.
- To report any type of change in the internal structure of the company.
- To provide updated information about the Register for Directors Shareholdings.
A Nominee Director for the UK must be a natural person and must be over 16 years of age. In other countries a nominee director should be over 18.
Other requisites to be a Nominee Director for the UK are not to be in bankruptcy, has never been disqualified as director in another company and he can not be the company’s auditor.
You need to sign some documents to protect yourself in case the nominees fail to fulfill his obligations.
This should include the full details of both parties (beneficiary owner and the nominated agent). The information should include: name, ID number, address, nominee director duties, information about the nature of your business, etc.
This documentation will protect the beneficiary owners, demonstrating that ownership of the company belongs to them.
This documentation will be presented to the authorities in case the company need to prove who is the actual owner of a company.
It is pretty common to have a Nominee director resignation letter signed but not dated. This will help you to remain fully in control of your company due to If a nominee resigns or the company decides to terminate his services, all rights will be returned to the company.
A Power of Attorney (POA) is an agreement to enable the nominee director or a Company Nominee to represent and act on behalf of the company.
Through the POA, the nominee director will be able to perform activities such as opening bank accounts or signing contracts on the company behalf.
Thanks to this documentation the nominee director will be legally bound and can do only the actions stipulated within the POA.
In some jurisdictions there are banks which do not accept nominee directors, so this can cause some trouble to the company when they try to open a bank account.
That is why you should talk to your bank before hiring a nominee director.
We are specialized in advising and supporting digital business owners in many countries, such as the UK, USA and Spain.
In the last 10 years we have helped hundreds of companies to open new business abroad fulfilling the legal requirements.
We have a very talented team of bookkeepers, accountants, attorneys and business consultants who will do their best to understand your needs and then will work to help you to boost your business.
What makes us different from other companies? Thanks to our team of advisors, we can provide advice in Spanish, Italian and English, so we can always speak to you in your own language, and at the same time we are experts in local legislation.
These are the services we can offer you:
- Fast incorporation of the Company LTD-LLC-SL
- Corporate books
- Annual Tax Return
- VAT registration / VAT returns
- Accounting and bookkeeping
- Registered Office
And of course, we provide Nominee Director services.
You can check all our company management services in this link.
At Ltd24ore we take care of everything you need. That is, we look for the most suitable Nominee for your business and then we carry out and deliver all the required documents and agreements.
The Nominee Director service takes 2-4 business days to be ready.
You get a Nominee Director quickly and without complications, since Ltd24ore supports you at all times.
We follow a very simple and fast process.
- First we talk to you to understand your needs. We will ask you to describe your case in detail so we can identify who will be responsible to advise you among our expert team.
- Then you choose a date or indicate your hourly and daily availability and pay for the online consultation. You get your online consulting by Zoom.
- Finally we create the documentation you need. Once it is done we make sure that all parties meet the prerequisites and sign the necessary legal documents.
Our clients have our support throughout the duration of the contract with the nominee director.
Before signing the documentation we will ask you for some information.
- We will need to know your reasons for requesting a nominee director in order to best advise you.
- We need to know the nature of your business. Please note if your company is related to finance / cryptocurrency we cannot provide this service.
- We will request proof of identity and address of the beneficial owner. It can be a utility bill or bank account statement drawn up in the last 3 months.
Important points to take into account for greater security of both parties:
- Nominees will only be used for public record at Companies House.
- The candidate does not participate in the company’s daily operations.
- The Nominee Director service we provide to you is for administrative purposes only. The Nominee Director is not involved in the company’s management, therefore he has no control over the company.
- The nominated Director is only a representative, this means that he is not responsible for the actions carried out for the company either.
- The beneficiary is in charge of giving instructions and having full control of all the company’s decisions. So he will have to participate in the operations of his company to make sure that everything goes in order and correctly.
- The Nominee Director can be canceled at any time when the client wishes. You just have to notify us in writing and Ltd24ore will take care of supporting you in your request.
- LTD: No restriction, as long as at least one director is a natural person.
- LLP: The service does not apply.
- Registered UK establishment : The service does not apply for this jurisdiction.
We do not provide Nominee services for the activities mentioned below:
- Weapons/Arms Dealing
- Selling fake diplomas
- Pharmaceutical products (including food supplement)
- Security Exchanges
- Mutual and Hedge Funds
- Precious Metals
- Futures trading
- Gambling, Online casinos
- Churches and charities
- Financials services requiring license, BGs, SBLCs, MTNs, financial instruments
- Businesses Alternative payment systems (E-pay)
- All activities requiring a dedicated licence in the UK
- Insurance companies and brokers
- Adult content Websites, Pornography
Nominee Director service fee is GBP 2200.00/year.
Nominee Shareholder service fee is GBP 2200.00/year.
If you are interested in our nominee director services you can send us a message and some of our experts will contact you, or call us at (0044) 78 8498 9297.