Individual vs. Corporate Nominees: Which One is Best for Your Business?

What Is a Nominee Director or a Nominee Shareholder?

A third party nominee is someone listed as the director or shareholder of your company — but they don’t actually own or have voting rights on your company. They’re just there to protect your identity and help you meet legal rules.

There are two main types:

1. Individual nominee – A person listed as the individual nominee director service or individual nominee shareholder service.
2. Corporate nominee – A company listed as the corporate nominee director service or corporate nominee shareholder service.

They both have pros and cons, so let’s break it down simply.

Individual Nominee Director or Shareholder

An individual is a person who acts as a director or shareholder of your company on public record — but you stay in control.

✅ Good Things About an Individual Nominee:

✔️ Cheaper – Costs less money than a corporate nominee.
✔️ Easy to Set Up – Faster and simpler to get started.
✔️ Keeps You Private – Their name shows up on behalf of the beneficial owner, so the actual owner remains anonymous.
✔️ Follows Local Rules – Some countries (like Singapore) require a local director — an individual fixes that problem.

❌ Bad Things About an Individual:

❌ Problem: Trust Issues – They could make bad choices or even steal from the company.
✅ Resolution: Legal document or legal professionals - Use either a legal agreement like a power of attorney or use a lawyer or person in a position of trust to fulfil your requirement.

❌ Problem: Personal Risk – If they make a mistake, you might get blamed.
✅ Resolution: Competence - Gain legal assistance or use an established corporate service provider to assist you in finding a reliable candidate.

❌ Problem: Limited Use – Some countries limit how many companies one person can represent.
✅ Counter: Legal framework - Find a legal framework with less restrictions or simply use a corporate service provider like OffshoreCompanyReg to assist in finding a suitable candidate.

💡 Example:

If you set up a company in Singapore, the law says you need a local person to be listed as a director. You could hire an individual from Singapore to handle that while you stay in control, while you remain the legal owner. You could also hire a second nominee to keep your personal information, such as your own name, off of a public register.

*As the real owner you will still have to declare yourself as the ultimate beneficiary owner to the Singaporean Authorities and that the individual is simply the holder of shares.

Using A Nominee Company Service Provider

Corporate Nominee Director or Shareholder

A corporate nominee is when you list a company (not a person) as the director or shareholder. The Corporate variant is usually offered by professional firms that manage offshore companies and the company name will appear on the register of members in place of you as the business owner.

✅ Good Things About a Corporate Nominee:

✔️ Looks Professional – Banks and business partners trust companies more than individuals.
✔️ More Secure – They are managed by professionals, so there’s less chance of fraud.
✔️ Stays Around Longer – If an individual quits, you have to start over. A company won’t quit.
✔️ Good for Big Businesses – Best for large companies working in different countries but can be used for a small business.

❌ Bad Things About a Corporate Nominee:

❌ More Expensive – Costs more than an individual.
✅ Resolution: Cost benefit analysis - Make a judgement as the true owner of the business as to whether you need to use a nominee arrangement, then figure out whether a corporate or an individual is required. If you are not doing super complex activities then an individual may be the right fit.

❌ Less Flexible – Corporations follow strict rules, so it’s harder to make quick changes.
✅ Resolution: Predetermine level of flexibility - Have a conversation to understand the level of rigidity in the service and if it won't work for you then find an alternative provider.

❌ More Attention from Government – Governments might check more closely if a company is listed as offering these services.
✅ Resolution: Confirm the company is in good standing - Ask to view corporate documents or view them on companies house (if publicly available) before any nominee shareholder agreement or nominee director agreement is signed.

💡 Example:

If you’re opening a company in the British Virgin Islands (BVI) and need to look professional for banks, a corporation will help you look more trustworthy while remaining the registered owner.

When to Use an Individual vs. Corporate Nominee

If you’re not sure which to choose, here’s a simple way to decide:

➡️ Use an Individual if:

• You want to save money — Individual nominees are cheaper.
• You need to keep it simple — Setting up an individual nominee is quick and easy.
• Local law requires a local director — In places like Singapore, you need a resident nominee.

➡️ Use a Corporate if:

• You want to look professional — Banks and business partners trust corporations more.
• You need long-term stability — A corporation is less likely to disappear or quit.
• Your business is complex — If you have multiple countries involved or complicated tax structures, corporate nominees handle it better.

➡️ Use Both if:

• You need privacy and professionalism — An individual protects your identity, while a corporation gives you credibility.
• You want to meet legal requirements and keep control — Combining both nominees covers all legal and business needs.

How Individual and Corporate Nominees Can Work Together

To get the best protection and privacy, you can combine both nominees:

1. Individual Director – Satisfies local legal rules and protects your identity.
2. Corporate Shareholder – Makes your business look trustworthy and stable.
3. Power of Attorney – Keeps you in control so the nominee can’t make decisions without you.
4. Declaration of Trust – Confirms that the nominee is holding shares on your behalf.

✅ Example:

You open a company in Hong Kong and:

• Hire an individual nominee to meet Hong Kong’s legal requirement for a local director.
• Use a corporate nominee to make your company look professional to banks.
• Sign a Power of Attorney to stay in control of decisions.

Best Practices

✔️ Use a trusted nominee service – Don’t hire random people.
✔️ Sign a clear agreement – Make sure they can’t act without your permission.
✔️ Keep checking – Make sure are doing what you agreed.
✔️ Follow the law – Make sure they follow local tax and business rules.

Why Using Both Is Smart

✅ An individual nominee director meets local rules and protects your identity.
✅ A corporate nominee shareholder makes your company look professional and stable.
✅ Combining both gives you maximum privacy, legal protection, and credibility.

🌍 Best Countries

• British Virgin Islands (BVI) – No taxes, fast setup.
• Singapore – Strong banking and legal system.
• Hong Kong – Global financial hub with low taxes.
• Cayman Islands – Great for asset protection.
• Seychelles – Cheap and fast to set up.
• United Kingdom - Well recognised jurisdiction

✅ Conclusion

If you want to keep things cheap and simple — go with an individual nominee.
If you want to look professional and have more security — use a corporate nominee.
If you want the best of both worlds — combine both.

👉 Need help getting set up? Contact us today for expert guidance!