A facet shell element based on an anisoparametric plate bending element and a quadratic plane-stress element with vertex rotations is formulated for geometrically nonlinear analysis of shells. The updated Lagrangian formulation which proves to be effective for three-node elements is employed. The restriction of small rotation between the increments is removed by using Hsiao's finite rotation method in which the rigid body motion is eliminated from the total displacement. The displacement control is used to alleviate the singularity of the tangential stiffness matrix in the limit point type problems. Numerical solutions are presented for beams, plates and shells to evaluate the performance of the element.