The UK PSC register is public and searchable. A nominee director conceals the directorship record but does not conceal beneficial ownership unless a corporate layer above the UK company sits in a jurisdiction that itself does not publicly file ownership information.
The Baseline Fee Range and What It Covers
Most UK company formation agents charge £300 to £600 per year for a nominee director service on a standard private limited company. That fee usually covers the nominee's name on Companies House filings, countersigning routine paperwork, and an annual review. It does not typically include signing bank mandates, appearing before HMRC, or any active management of the company.
What Pushes the Fee Above £1,000
Fees climb past £1,000 per year when the nominee is asked to hold broader authority: signing bank account documentation, appearing on mortgage or lease applications, or accepting personal liability through an indemnity agreement that carries real risk. Regulated UK financial firms sometimes charge £1,500 to £3,000 per year for a nominee director who will also serve on a company holding a financial services or credit licence, because the FCA fit-and-proper exposure is material. Some providers also charge a one-time setup fee of £150 to £500 on top of the annual retainer.
How the Nominee Director Role Actually Works in a UK Company
The nominee director appears on the public Companies House register as the company's director while the beneficial owner retains control through a combination of an undated resignation letter held by the owner, a directors' service agreement, and a separate shareholder agreement or side letter. Because the UK abolished bearer shares and tightened PSC (Persons with Significant Control) rules from 2016 onward, the beneficial owner must still be disclosed on the PSC register unless the ownership is held through a qualifying corporate layer, so the nominee arrangement affects the directorship record but not necessarily the ownership record. For a detailed breakdown of how the nominee director role is structured and what documents underpin it, see Nominee Director Meaning: What the Role Actually Is and How It Works in Practice.
Comparing Providers: Formation Agents vs. Law Firms vs. Offshore Corporate Service Providers
UK formation agents at the budget end use the same individuals as nominees across dozens or hundreds of companies, which creates reputational risk if one of those companies draws regulatory attention. Mid-market corporate service providers typically cap nominee exposure at 20 to 50 companies per individual and carry professional indemnity insurance. Law firms will occasionally provide this service but rarely advertise it, and their fees start around £2,000 per year because their liability exposure under the Solicitors Regulation Authority is higher. Offshore corporate service providers registered in the UK as agents sometimes bundle nominee director service with a registered office and virtual address for £500 to £900 per year, which represents reasonable value for a holding or property company with minimal activity.
Costs Hidden Inside the Annual Fee
Providers frequently charge separately for things that are operationally necessary: certified copies of the nominee's passport for bank KYC (£50 to £150 per request), notarised letters of authority (£100 to £250), attendance at a bank branch (sometimes charged hourly at £150 to £300), and replacement of a nominee who leaves or retires mid-term (£200 to £500 transition fee). Add these up across a year of normal corporate activity and the true cost of a £400 annual retainer can easily reach £800 to £1,200. Always ask for an itemised fee schedule before signing, not just the headline annual figure.
When a UK Nominee Director Makes Structural Sense and When It Does Not
A UK nominee director adds genuine value in a holding company that needs a UK-registered director for banking or counterparty purposes while the ultimate owner is tax-resident elsewhere. It is less useful as a privacy tool because the PSC register is public and searchable, meaning sophisticated counterparties or investigators will reach the beneficial owner quickly regardless of who sits as director. If privacy is the primary goal, a corporate layer above the UK company in a jurisdiction with stronger confidentiality, such as a BVI or Cayman holding company owning the UK entity, is structurally more effective than relying on a nominee director alone.
Things people ask first.
How much does a nominee director cost in the UK per year?
The typical range is £300 to £1,500 per year for a standard UK limited company. Simple arrangements at formation agents start around £300 to £600. Structures involving higher liability, regulated activities, or active document signing push fees to £1,000 to £3,000 per year.
Is a nominee director legal in the UK?
Yes, using a nominee director is legal in the UK. The arrangement must not be used to deceive creditors, circumvent court orders, or facilitate fraud. The nominee carries the same legal duties as any director under the Companies Act 2006 regardless of the private agreement behind the scenes.
Does a UK nominee director hide the beneficial owner?
Not reliably. Since 2016, Companies House requires all companies to maintain a Persons with Significant Control register that is publicly accessible. If you own more than 25 percent of the shares or otherwise control the company, your name appears on that register. A corporate holding structure above the UK company is needed if stronger ownership privacy is the goal.
Can a nominee director open a UK bank account?
Only if the bank is willing to accept them as the signatory, which is increasingly rare. Most UK banks require a meeting with or detailed KYC on the ultimate beneficial owner regardless of who appears as director. Some providers charge an additional fee of £150 to £300 per bank interaction on top of the annual retainer.
What documents underpin a UK nominee director arrangement?
The standard package includes an undated letter of resignation held by the beneficial owner, a directors' service agreement specifying the nominee's limited authority, and a nominee agreement or side letter detailing the indemnity the beneficial owner provides to the nominee. Some arrangements also include a power of attorney.
Are there ongoing costs beyond the annual retainer?
Yes. Certified ID copies, notarised letters, replacement nominee fees, and any professional time for correspondence or government agency interaction are typically billed separately. Budget an additional £200 to £600 per year for these incidentals on an active company.
Want the full structure behind using a UK nominee correctly?
The Offshore Playbook covers how to layer a UK holding company with offshore ownership to make a nominee director arrangement actually effective, including which jurisdictions sit cleanly above a UK company and how to avoid the PSC register traps that catch most people out.
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