(Note: This article is an analysis of a complex tool, not a call to use it. We share our experience so that you can make an informed decision and avoid fatal mistakes).

Let's be honest. Nominal service is not just a "name lease". This is the creation of a structure in which a specially hired person (nominee director) or a company formally holds a senior position. He appears in public registers, signs documents and communicates with banks and regulators.

The real owner (beneficiary) manages the business behind the scenes, based on an internal, confidential agreement (for example, a trust declaration or an option agreement).

And here's the first, most important secret to learn:

No one ever informs a bank or a government agency that the director is a nominee. To the outside world, he is a full—fledged, real-life head of a company who makes decisions on his own.

If this line is erased, the whole structure instantly loses its meaning and becomes a huge problem.

Since the nominal value is the real director for everyone, it is he who bears full legal, administrative and even criminal responsibility for the company's activities. If the company is involved in money laundering, fraud, or tax evasion, the questions will be asked specifically to him.

That is why a professional nominal service cannot cost "three kopecks". The price of the service directly depends on the level of risk that the director assumes.

• How does it work? Before entering into a contract, you must tell the service provider about the nature of your business in as transparent and detailed a manner as possible. Who are your clients? How do you get paid? Which countries do you work in?
• The price is formed from this. It's one thing to be a director at an IT company that develops software for the European market. And it's quite another thing in a fintech startup working with cryptocurrencies and high—risk jurisdictions. The higher the risk, the higher the responsibility and, consequently, the cost of nominal services.

Any business tool has its risks, and nominal service is no exception. It is important to weigh them objectively.

Possible advantages (when it might work):

• Confidentiality. The main reason. You don't "shine" in public registries, which protects you from unwanted attention from competitors.
• Compliance with legislation. In some countries (for example, the UAE, Singapore), the presence of a local resident in the company structure is a mandatory requirement. Face value is the fastest way to complete it.
• Operational flexibility. A quick launch of the company in a new jurisdiction without the need for personal presence and disclosure of the entire ownership structure.

The real risks (which should always be remembered):

• Loss of control. If you work with an untested "private trader" and not with a professional company, they may decide one day to "play their game." There are many scenarios to block an account, reissue assets.
• A "red rag" for banks. Bank compliance officers are not stupid. They conduct enhanced due diligence and may ask the director tricky questions about the business. If the nominal value "floats" and cannot clearly explain the essence of the company's activities, the account will not be opened or the existing one will be closed.
• Cost. Professional service is expensive. In Europe, nominee director services start from €2,000-€5,000 per year and can reach tens of thousands for risky projects.
• Legal consequences. In a number of countries, an attempt to conceal the real beneficiary through a complex structure may be regarded as a violation of the law.

You can try to find the face value yourself at your own risk, but in 99% of cases it will end badly. If you work through professionals, then this is the basis of your security:

1. Choose a provider, not a person. Work only with trusted legal or consulting companies that have a reputation, an office, and a pool of professional directors. They value their license and will not engage in outright fraud.
2. The contractual framework is your everything. The key document is an internal agreement between you and the denomination. It should specify all the details: the limitation of powers, the procedure, the obligation to transfer shares on demand and the conditions of confidentiality. It should be prepared by a qualified lawyer.
3. Limit your authority. Set up your bank account so that all large payments require a double signature (yours and face value). Write down in the articles of association that transactions over a certain amount require the approval of the shareholders (that is, you).
4. Never skimp. A cheap face value is either a beginner who does not understand the risks, or a fraudster. Both are a ticking time bomb for your business.

In the modern world with its trend towards transparency (de-risking), the classic nominal service is gradually becoming more toxic. There is an alternative — using modern fintech providers and corporate platforms.

Many modern services offer comprehensive solutions for company registration and management, where all processes are built as transparently as possible for banks and regulators, which reduces the risks of blockages.

A nominal service is not a "magic pill" for anonymity, but rather a powerful medicine with many side effects. It can be justified in a very narrow range of tasks.:

• When the demands on privacy outweigh all imaginable risks.
• When this is the only way to fulfill the legal requirement for a local director.

In all other cases, the risks tend to exceed the potential benefits. The opaque structure of the company in 2025 is almost a guarantee of problems with banks and regulators.

Before entering this territory, it is critically important to get advice from experts specializing in international corporate law and compliance. The cost of a mistake here is measured not only in money.