Foreign National as director of Indian Company under Companies Act, 2013
Under the Indian Companies Act, 2013, six kinds of Directors are designated in a private limited company. This designated director of a company can be Women Director, Independent Director, Foreign National director, Small Shareholders Director, Additional Director, Alternative and Nominee Director. Therefore, the Act does not bar on Foreign National as director of Indian Company.
Following are the criteria that are to be satisfied by a person to be a Director of an organization under the Act:
- Each individual (including a foreign national) will have to apply or should have been allotted a Director Identification Number (DIN) before he can be named as a director.
- Each individual (counting a foreign national) to be selected as a Director will have to furnish his DIN declare that he isn’t disqualified under the act to become a director of a company.
- The individual (counting a foreign national) will have to give his consent to be a director in a company. Such consent should be given in Form DIR-2 within 30 days of appointment as a director.
Application & Allotment Of DIN
A foreign national applying for DIN needs to fill an application in Form DIR-3 along with prescribed fees and submit it on the MCA portal. An attested duplicate of the requisite documents should also be appended with DIN application. The application should be digitally signed and submitted. Every single supporting archive including photo should be confirmed by the Indian Embassy in the country of the foreign national. Also, a public accountant can confirm the nation of origin of the candidate. It can also be done by the Managing Director/CEO/Company Secretary of the organization enrolled in India. Also in which candidate intends to become a director. The DIN so acquired by the candidate will be valid till the lifetime of the applicant.
Mentioned below are the documents required to be attached to the application:
- Proof of identity
- Proof of residence
- Copy of Resolution regarding Proposal to appoint Director (Including Foreign National/ NRI).
Foreign National as Independent Director
A Foreign National as director of Indian Company can be an autonomous Director of a company on the off chance that he has abilities, experience, and information in at least one fields. However, the field can be of the back, law, administration, deals, showcasing, organization, inquire about or different controls identified with the organization’s business. Therefore, A remote national as a chief in an Indian organization can hold.
It keeps up a remote cash account with a bank outside India and gets or dispatch the entire pay payable to him for his services. Where remote nationals are locked in by Indian organizations. Therefore the Indian organizations will make an application for settlement of compensation to approved merchants with an announcement. It also undertakes the endorsement in regards to the installment of Income Tax. An outside national aiming to end up a chief in an Indian organization will hold a substantial work visa.
Foreign National as Whole-time Director
An outside national, expecting to wind up an overseeing or a full-time chief, ought to be an inhabitant of India. In other words, the person who has been remaining in India ceaselessly at the very least a year, instantly going before the date of his appointment. He ought not to be under twenty-one years old nor over seventy years old. On the off chance that the individual is of seventy years old, bypassing an exceptional determination can be designated so. The individual ought not to be bankrupt whenever suspended installment to his leasers. Therefore, whenever been indicted an offense and condemned for in excess of a time of six months.
However, such an arrangement is affirmed by the BOD in meetings. As well as which will be a subject of endorsement in the following general meetings by passing a determination. Endorsement from Central Government is required if the individual does not agree to the previously mentioned conditions.
At the time of Company Registration, all the individuals who do not have DIN including the Foreign National as director of Indian Company should get a valid Director Identification number along with approved documents. If you are a foreign national or an NRI who wishes to obtain Company Registration in India then contact Company Registration Online today.