{"id":2929,"date":"2025-10-16T12:47:48","date_gmt":"2025-10-16T12:47:48","guid":{"rendered":"https:\/\/businassist.com\/blog\/?p=2929"},"modified":"2025-12-17T14:41:43","modified_gmt":"2025-12-17T14:41:43","slug":"can-a-company-be-a-director-of-another-company","status":"publish","type":"post","link":"https:\/\/businassist.com\/blog\/can-a-company-be-a-director-of-another-company\/","title":{"rendered":"Can a Company Be a Director of Another Company: Legal Insights for 2025"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2931\" src=\"https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/10\/can-a-company-be-a-director-of-another-company.webp\" alt=\"can a company be a director of another company\" width=\"1000\" height=\"664\" srcset=\"https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/10\/can-a-company-be-a-director-of-another-company.webp 1000w, https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/10\/can-a-company-be-a-director-of-another-company-300x199.webp 300w, https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/10\/can-a-company-be-a-director-of-another-company-768x510.webp 768w, https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/10\/can-a-company-be-a-director-of-another-company-120x80.webp 120w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p>In the UK, a company can be appointed as another company\u2019s director, however, with the new changes in regulations under the Economic Crime and Corporate Transparency Acts (<a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/2023\/56\">ECCTA<\/a>), the practice is set to be restricted.<\/p>\n<p>The new rules want to ensure a company has at least one human as a director. However, the rules may come with exceptions which will be highlighted in this article.<\/p>\n<p>Is it legal for a company to be appointed as a director of another company? This article will serve as a guide to help you understand the appointment of a corporate director, current reforms, and what companies should consider when appointing one.<\/p>\n<div class=\"takeAwayDesign\">\n<p>Key Takeaways<\/p>\n<ul>\n<li>Corporate directors can be companies on a board, but at least one human director is required.<\/li>\n<li>From 2025, all directors must complete identity verification with Companies House.<\/li>\n<li>Large companies may appoint corporate directors if it supports a legitimate aim and follows transparency rules.<\/li>\n<li>Non-UK corporate directors should be replaced or made compliant; BusinAssist can assist with filings and appointments.<\/li>\n<\/ul>\n<\/div>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Post Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #1e73be;color:#1e73be\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #1e73be;color:#1e73be\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/businassist.com\/blog\/can-a-company-be-a-director-of-another-company\/#What_is_a_corporate_director\" >What is a corporate director?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/businassist.com\/blog\/can-a-company-be-a-director-of-another-company\/#Why_appoint_a_corporate_director_for_your_company\" >Why appoint a corporate director for your company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/businassist.com\/blog\/can-a-company-be-a-director-of-another-company\/#Is_it_legal_to_have_a_corporate_director_in_2025\" >Is it legal to have a corporate director in 2025?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/businassist.com\/blog\/can-a-company-be-a-director-of-another-company\/#What_are_the_conditions_for_becoming_a_corporate_director_in_2025\" >What are the conditions for becoming a corporate director in 2025?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/businassist.com\/blog\/can-a-company-be-a-director-of-another-company\/#What_are_the_implications_for_companies_with_corporate_directors_in_2025\" >What are the implications for companies with corporate directors in 2025?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/businassist.com\/blog\/can-a-company-be-a-director-of-another-company\/#How_to_appoint_a_corporate_director\" >How to appoint a corporate director<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/businassist.com\/blog\/can-a-company-be-a-director-of-another-company\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_corporate_director\"><\/span><b>What is a corporate director?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A corporate director is a registered company acting as a director for another company. Unlike human directors, who oversee the company\u2019s affairs, a corporate director is used for governance and control.<\/p>\n<p>Under the <a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/2006\/46\/contents\">Companies Act 2006<\/a>, companies are permitted to be appointed as corporate directors. However, under section 155 of the Act, every company should have at least one human director. Companies can appoint corporate directors; however, they cannot be the sole directors of a company.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_appoint_a_corporate_director_for_your_company\"><\/span><b>Why appoint a corporate director for your company?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2277\" src=\"https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/04\/Why-should.jpg\" alt=\"Why should\" width=\"1601\" height=\"648\" srcset=\"https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/04\/Why-should.jpg 1601w, https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/04\/Why-should-300x121.jpg 300w, https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/04\/Why-should-1024x414.jpg 1024w, https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/04\/Why-should-768x311.jpg 768w, https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/04\/Why-should-1536x622.jpg 1536w\" sizes=\"auto, (max-width: 1601px) 100vw, 1601px\" \/><\/p>\n<p><b>Maintaining oversight<\/b>: a corporate director maintains oversight and consistency of a company, especially in large corporate groups. They help to streamline decision-making by centralised governance.<\/p>\n<div class=\"proTipSection\">\n<div class=\"proTipContainer\">\n<div class=\"proTipIconWrapper\">\n<div class=\"proTipIcon\">i<\/div>\n<\/div>\n<div class=\"proTipContent\">\n<p><strong>Pro Tip: Benefits of Appointing a Corporate Director<\/strong><\/p>\n<p>A corporate director helps keep your company stable and ensures consistent governance, handling compliance, filings, and administration. They provide continuity that human directors can\u2019t, making them ideal for large or complex corporate structures.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p><b>Privacy: <\/b>companies use corporate directors to shield the identity of beneficial owners. However, this is less relevant due to the rules of People with Significant Control (PSC) where their information has to be disclosed.<\/p>\n<p><b>Compliance management<\/b>: Companies appoint corporate directors mainly to handle filings, governance, administration, and compliance.<\/p>\n<p><b>Stability<\/b>: a corporate director does not change due to illness, retirement, or resignation as human directors do.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_it_legal_to_have_a_corporate_director_in_2025\"><\/span><b>Is it legal to have a corporate director in 2025?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1729\" src=\"https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/01\/legal-and-compliance-aspects-of-a-registered-office-address.jpg\" alt=\"legal and compliance aspects of a registered office address\" width=\"999\" height=\"500\" srcset=\"https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/01\/legal-and-compliance-aspects-of-a-registered-office-address.jpg 999w, https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/01\/legal-and-compliance-aspects-of-a-registered-office-address-300x150.jpg 300w, https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/01\/legal-and-compliance-aspects-of-a-registered-office-address-768x384.jpg 768w\" sizes=\"auto, (max-width: 999px) 100vw, 999px\" \/><\/p>\n<p>The current changes that are supposed to take place in Autumn 2025, may restrict companies from appointing another company as their director. Before we dive deep into the new regulations, let us understand the current situation as of 2024.<\/p>\n<p>Currently, a company can be a director of another company, at least one director must be a natural person. This means the company will have two directors, a corporate and a natural person.<\/p>\n<p><b>Changes coming in 2025<\/b>:<\/p>\n<p>The use of corporate directors (companies being directors of other companies) is being phased out. A new rule requires all directors, including existing ones, to have their <a href=\"https:\/\/businassist.com\/verify-your-identity-for-companies-house.php\">identity verified by Companies House<\/a>.<\/p>\n<p>This ID verification process is designed to enhance corporate transparency and combat money laundering.<\/p>\n<p>A company will still need at least one natural person on its board.<\/p>\n<p>However, there may be exceptions for corporate directors that are UK-registered and where all the directors of that company are individuals who have verified their identity.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_conditions_for_becoming_a_corporate_director_in_2025\"><\/span><b>What are the conditions for becoming a corporate director in 2025?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Must have at least one human director<\/b>: Alongside a company director, the company must have at least one human director. Submission of <a href=\"https:\/\/businassist.com\/uk-ltd-company-formation.php\">UK company registration<\/a> forms with no human director will be rejected by Companies House.<\/p>\n<p>If a company has both corporate and human directors and due to any circumstances the human director resigns the company will be in \u2018default\u2019 since companies cannot be sole directors.<\/p>\n<p><b>ID verifications<\/b>: This has been added to enhance transparency and combat money laundering. When appointing a corporate director, the details from the company structure, when it was registered, and the registration number to its principal office must be provided.<\/p>\n<div class=\"proTipSection\">\n<div class=\"proTipContainer\">\n<div class=\"proTipIconWrapper\">\n<div class=\"proTipIcon\">i<\/div>\n<\/div>\n<div class=\"proTipContent\">\n<p><strong>Pro Tip: Key Conditions for Appointing a Corporate Director<\/strong><\/p>\n<p>To appoint a corporate director, ensure your company has at least one human director and meets all ID verification requirements. The corporate director must be a UK-registered entity, comply with the Articles of Association, and for large companies, demonstrate a legitimate purpose for the appointment.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p><b>Must be a UK legal entity<\/b>: The entity must be a registered UK company and all its directors\u2019 identities must be verified. The company should make its directors\u2019 information publicly available in the Companies House register.<\/p>\n<p>This enhances transparency and tracing back responsibilities by identifying persons of the corporate director.<\/p>\n<p><b>Articles of Association do not prohibit<\/b>: A legal entity cannot be a corporate director if its Articles of Association prohibits the same as the company making the appointment. Some companies may have specific directions on director appointments.<\/p>\n<p><b>Large companies exception<\/b>: The ban on appointing corporate directors is not absolute since it has some exceptions, especially for large companies. Large corporates must demonstrate that the appointment of a corporate director will help them achieve a legitimate aim and that the company in question is transparent and accountable as subject to the law just as individual directors.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_implications_for_companies_with_corporate_directors_in_2025\"><\/span><b>What are the implications for companies with corporate directors in 2025?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1859\" src=\"https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/02\/What-to-do-if-your-employer-doesnt-issue-a-P45.jpg\" alt=\"What to do if your employer doesn\u2019t issue a P45\" width=\"1199\" height=\"526\" srcset=\"https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/02\/What-to-do-if-your-employer-doesnt-issue-a-P45.jpg 1199w, https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/02\/What-to-do-if-your-employer-doesnt-issue-a-P45-300x132.jpg 300w, https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/02\/What-to-do-if-your-employer-doesnt-issue-a-P45-1024x449.jpg 1024w, https:\/\/businassist.com\/blog\/wp-content\/uploads\/2025\/02\/What-to-do-if-your-employer-doesnt-issue-a-P45-768x337.jpg 768w\" sizes=\"auto, (max-width: 1199px) 100vw, 1199px\" \/><\/p>\n<p>Companies currently using non-UK corporate directors should start planning to replace them with natural persons or UK-registered corporate directors that meet the <a href=\"https:\/\/businassist.com\/verify-your-identity-for-companies-house.php\">new identity verification<\/a> requirements.<\/p>\n<p>Companies must be aware of the new ID verification requirements for all directors, including existing ones, and ensure they are met on time.<\/p>\n<p>Companies should also be aware of the new regulations regarding <a href=\"https:\/\/businassist.com\/blog\/registered-office-address-service-london-uk\/\">UK Registered Office Addresses<\/a> and the requirements for <a href=\"https:\/\/businassist.com\/blog\/what-is-an-authorised-corporate-service-provider\/\">Authorised Corporate Service Providers (ACSPs)<\/a>.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"How_to_appoint_a_corporate_director\"><\/span><b>How to appoint a corporate director<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>The appointment of a corporate director is the same as that of an individual director. If the appointment of a corporate director is during the incorporation process, you must complete the IN01 form by filling out all the information.<\/p>\n<p>If the appointment is after the company is formed, the initial process must be followed before notifying Companies House. The process includes:<\/p>\n<p><b>Review of the company\u2019s Articles of Association<\/b>: Articles of association have provisions on how the director should be appointed. It may specify the resolutions that the company should follow, whether is the board resolution, shareholder resolution, or both.<\/p>\n<p><b>Obtain consent from the corporate director<\/b>: A corporate director just as the individual director, must consent to the appointment through a written statement.<\/p>\n<p><b>Pass resolution<\/b>: The appointment is formalised through a resolution through a board of directors or shareholders or a combination of both.<\/p>\n<p><b>Notify Companies House<\/b>: Within 14 days after the director\u2019s appointment the company must notify Companies House.<\/p>\n<p>Is it legal for a company to be appointed as a director of another company? While a legal entity can be a director of another company, new specific regulations must be followed by Autumn 2025. The new regulations look forward to banning the appointment of a corporation director but there are exceptions. Large corporations can appoint a corporate director if they prove it can help them achieve their legitimate aim. The corporate director must go through the ID verifications and directors\u2019 details are available in the public record.<\/p>\n<p>BusinAssist can help you align with the regulations taking effect this Autumn. If you have a non-UK corporate director, you must replace them with a UK-registered company or a human director to comply with the regulations.<\/p>\n<p>We can help you notify Companies House through our <a href=\"https:\/\/businassist.com\/company-structure-changes-uk.php\">company structural change service<\/a> and also our <a href=\"https:\/\/businassist.com\/confirmation-statement-filing-service.php\">filing Confirmation Statements services<\/a> at an affordable price.<\/p>\n<p>For more information on notifying Companies House of the appointment of a new director, contact us at <a href=\"mailto:info@businassist.com\">info@businassist.com<\/a>.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><b>FAQs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><b>Q: Can a company be a director of another company in the UK?<br \/>\n<\/b><strong>Ans:<\/strong> While a company can be a director of another company, the company must have at least one human director.<\/p>\n<p><b>Q: Is it legal for a company to act as a director for another company?<br \/>\n<\/b><strong>Ans: <\/strong>It is legal for a company to act as a director of another company as long as the company it is appointed to has at least one human director.<\/p>\n<p><b>Q: How can a company appoint another company as its director?<br \/>\n<\/b><strong>Ans: <\/strong>A company can be appointed as a director through an ordinary resolution passed by the shareholders, and supported by a majority vote. The company must provide written consent to accept the appointment and take on the responsibilities. The company must file the details with Companies House 14 days after the appointment.<\/p>\n<p><b>Q: Will Companies House allow a company to be a director in 2025?<br \/>\n<\/b><strong>Ans: <\/strong>In 2025, a company cannot appoint another company as a director due to the new regulations introduced under the Economic Crime and Corporate Transparency Act.<\/p>\n<p><b>Q: Can a company be a shadow director?<br \/>\n<\/b><strong>Ans: <\/strong>While a company cannot formally be appointed as another director, it can be a shadow director if the other company\u2019s directors are accustomed to acting on its directions or instructions.<\/p>\n<p><strong>Read Also:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/businassist.com\/blog\/best-company-formation-agents-uk\/\" rel=\"bookmark\">Best Company Formation Agents in the UK 2025: Choose BusinAssist for a Smooth Start<\/a><\/li>\n<li><a href=\"https:\/\/businassist.com\/blog\/small-business-ideas-to-start-in-2026\/\" rel=\"bookmark\">50 Small Business Ideas to Start in 2026: Low Investment and High Potential<\/a><\/li>\n<li><a href=\"https:\/\/businassist.com\/blog\/uk-bank-holidays-in-2026\/\" rel=\"bookmark\">How Many Bank Holidays in 2026? Full List of UK Dates You Should Know<\/a><\/li>\n<li><a href=\"https:\/\/businassist.com\/blog\/someone-has-registered-a-company-at-my-address-uk\/\" rel=\"bookmark\">Someone Has Registered a Company at My Address in the UK \u2013 Understanding Your Rights<\/a><\/li>\n<li><a href=\"https:\/\/businassist.com\/blog\/what-happens-if-you-make-a-mistake-on-your-tax-return-uk\/\" rel=\"bookmark\">What Happens if You Make a Mistake on Your Tax Return UK: A Comprehensive Guide<\/a><\/li>\n<li><a href=\"https:\/\/businassist.com\/blog\/what-is-a-tax-office-reference-number\/\" rel=\"bookmark\">What is a Tax Office Reference Number and How Can I Find It?<\/a><\/li>\n<\/ul>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\/\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Can a company be a director of another company in the UK?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"While a company can be a director of another company, the company must have at least one human director.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Is it legal for a company to act as a director for another company?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"It is legal for a company to act as a director of another company as long as the company it is appointed to has at least one human director.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How can a company appoint another company as its director?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"A company can be appointed as a director through an ordinary resolution passed by the shareholders, and supported by a majority vote. The company must provide written consent to accept the appointment and take on the responsibilities. 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