What is the difference between a Nominee Director and a Beneficial Owner?

Detailed Explanation

A Nominee Director is an individual appointed to the board of a company to act on behalf of another party, often holding nominal title on public filings. A Beneficial Owner is the actual individual who holds true economic ownership, directs the company's affairs, and receives the profits. Nominee arrangements are often used to conceal beneficial ownership and require enhanced scrutiny during KYC reviews.