The benefits of using nominee services are evident in cases where a business owner wishes to maintain their privacy and reduce access to official records or does not want their name to be associated with the business in question. In addition, there may be situations where an individual has restrictions on performing the proposed activity or where the law requires local management, such as a local secretary in Hong Kong.

When quick action is required to register a company abroad in the event the client is unable to travel, it is often more convenient to temporarily appoint a local company director. When intending to open a business in a foreign jurisdiction such as BVI, Belize or Hong Kong, it can be physically difficult to appear in person.

Nominee services usually guarantee confidentiality and anonymity. However, disclosure is sometimes made to banks or investigative authorities during court proceedings.

The nominee services are often used for tax planning and wealth protection purposes. If the ultimate beneficiary of the full corporate structure resides in low-tax jurisdictions, it should enjoy the benefits of the low-tax regime for the dividends received from the profits generated.

Other benefits derive from the country of registration and are often related to financial statements and reports. In some tax haven jurisdictions there is no need for annual filing, hence low auditing and accounting requirements which offer certain advantages if the individual is willing to increase privacy and confidentiality and hide their assets.