Appointment of Non-Resident/ Foreign Citizen/ Foreign National as a Director
September 30, 2015 by Kamini Goyal
Can a Non-Resident/ Foreign National/ Foreign Citizen become Director of an Indian Company?
Yes, a foreign nationals or foreign citizen or Non-Resident Indians residing abroad can be appointed as a Director on the Board of Indian companies whether public listed or unlisted or private. He may be appointed as Whole Time Director (Executive director) or Non – Whole Time Director (Non – Executive Director).
Pre-requisites to become a Director for NR
||Digital Signature Certificate (DSC) and Director Identification Number (DIN)
To become a Director, an individual is required to obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN).
For applying DIN and DSC, Passport Number is mandatory for Non-residents. Foreign nationals shall select the nationality as declared in the passport. The above documents are required to be certified by the Indian Embassy or apostil led by notary in the home country of the applicant.
Permanent Account Number (PAN) from the Indian Income Tax department is not compulsory required from Non-Residents.
Resident Director under Companies Act 2013: –
Section 149(3) of Companies Act 2013 provides that every Company shall have at least one Director who has stayed in India for a total period of not less than 182 days in the previous calendar year.
Even a Non- Resident can act as Resident Director of the Company provided he has stayed in India for more than 182 days in the previous calendar year.
Attending Board Meeting by Non-Residents: –
Companies Act 2013 does not prohibit holding of Board meetings abroad.
Also, according to Section 173(2), there is a provision for conducting Board meetings through video –conference, thereby making it simple for Non-Residents.
For more info on BM through Video Conference, please click http://bsamrishindia.com/board-meeting-through-video-conferencing-or-other-audio-visual-means/