Any public limited or private company needs to have a board of directors constituted for the purpose of managing the day-to-day affairs of the Company. The reason for the existence of the board of directors is that there needs to be a body that is above the management and which can be accountable to the regulators and shareholders for the decisions taken by the management of the company.
Foreign Directors in Indian CompanyDirectors in Indian company: The Companies Act 2013 states that there should be minimum 2 directors in a private company and 3 in a public company. All the directors should be Individual Persons. All the Companies registered under the Act should have at least one Resident Directors (a person who has stayed in India for at least 182 days in the previous year.)
Foreign Directors in Indian Companies: The Companies Act 2013 doesn’t bar a foreign individual from being a director in an Indian company. However there are additional requirements to be fulfilled by the foreigner before he/she is appointed.
Every person should have a DSC in his name and a DIN allotted by the MCA before being appointed as a director. The list of documents required for DSC and DIN is an important factor to be kept in mind. Following are the documents that are required from a Foreign National –
- Copy of Passport as ID Proof
- Address proof- Bank statement, DL, Utility bill (not older than two months)
- Employment/Business Visa (For foreign nationals residing in India)
- Residence Permit (For foreign nationals residing in India)
- Passport Size Photograph
All the above documents should be notarized by a Public Notary in the country of residence and should be Consularized /apostille by the concerned authority in the Foreign National’s home country.
Nikita Bhatia is the co-founder of VenturEasy, an online platform for Company registration, book-keeping, accounting, tax consultancy and legal compliances in India. A Chartered Accountant and company secretary by profession, she has wide experience in the fields of audit, accountancy, taxation and corporate governance.