Is a resident director mandatory for an Indian company?

Yes. Under Section 149(3) of the Companies Act, 2013, every company must have at least one resident director who has stayed in India for at least 182 days in the financial year.

Will the resident director control bank accounts or sign contracts?

No. The resident director is appointed as a non-executive director and is not authorized to operate bank accounts or sign operational contracts. Control remains with the parent company and executive signatories.

How does Business Setup protect the foreign parent company?

We provide an undated signed resignation letter from the resident director, no financial/contract authority, clear scope in the Resident Director Agreement, and an indemnity bond to protect the company.

What are the steps to appoint the resident director?

1) We share the director’s profile (qualified CA, 10+ years). 2) You sign the Resident Director Agreement. 3) We provide and file all appointment documents. 4) We assist with bank account opening documentation. 5) Either party can terminate with 15 days’ notice.

What are the service fees?

Pricing starts at USD 300 per month and varies with responsibilities and scope. All engagements include a 4-hour response SLA.

What rights does the resident director have?

Limited rights to ensure compliance: access to compliance documents, notification if any compliance is missed, and to be informed within 24 hours of any notices or litigation received. The director also holds an undated resignation acceptance letter for smooth exit.

Resident Director Services in India for Foreign Companies

Foreign companies setting up a subsidiary in India must comply with the requirement of having at least one resident director under the Companies Act, 2013. For many global businesses, this becomes a challenge—finding a trusted, qualified professional in India who can act as the local director while safeguarding the interests of the foreign parent company.

At Business Setup Private Limited, we provide resident director services in India through highly experienced professionals—qualified Chartered Accountants with 10+ years of expertise, already serving as directors for multinational companies from Sweden, USA, UK, and across Europe.

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Why Do You Need a Resident Director in India?

According to Section 149(3) of the Companies Act, 2013, every company must appoint at least one director who has stayed in India for a minimum of 182 days in a financial year. For foreign promoters who do not have a local partner or employee to take this role, professional resident director services are the most secure and compliant option.

How Our Resident Director Services Work

We provide a simple and transparent process for appointing a resident director for your Indian subsidiary:

Director Profile – We share detailed profiles of qualified resident directors.
Resident Director Agreement – Outlining all terms, responsibilities, and protections.
Appointment Documentation – Assistance with board resolutions, consent forms, and DIR filings.
Bank Account Support – Help with documentation for Indian bank account opening.
Easy Exit – Either party can terminate the arrangement with just 15 days’ notice.

Powers of the Resident Director

Foreign promoters often worry about control. With us, you remain fully in charge:

The resident director is appointed as a non-executive director.
He/she cannot operate bank accounts or sign contracts on behalf of the company.
Role is limited to fulfilling legal requirements and ensuring compliance.

How Your Company is Protected

We ensure your business interests are safeguarded through clear legal protections:

Undated signed resignation letter – can be used anytime to remove the director.
No operational authority over finances or contracts.
Indemnity bond – to protect the company against director liabilities.

Rights of the Resident Director

While the role is limited, the resident director has a few rights to ensure compliance:

Access to documents and compliance information.
Must be informed of any missed compliance deadlines.
Must be notified within 24 hours of receiving any government notices or litigation.
Holds an undated resignation acceptance letter from the company for smooth exit.

Charges for Resident Director Services in India

Services start at USD 300/month.
Final charges depend on responsibilities and scope of engagement.

This cost-effective solution eliminates the need to appoint employees as directors, while giving you a trusted professional.

Why Choose Business Setup Private Limited?

Qualified Chartered Accountants with over 10 years’ experience.
Already directors in multiple multinational subsidiaries in India.
100% compliance assurance—avoid penalties and regulatory risks.
4-hour response time for queries.
No operational interference, only compliance support.

Frequently Asked Questions (FAQ)

Q1. Is a resident director mandatory for all Indian companies?
Yes. Every company in India must have at least one resident director as per Section 149(3) of the Companies Act, 2013.

Q2. Can the resident director control my bank account?
No. Our resident directors are non-executive and cannot operate your bank accounts or sign contracts.

Q3. How can I remove a resident director if required?
We provide an undated signed resignation letter, which can be used anytime to remove the director.

Q4. What is the minimum contract duration?
There is no lock-in. The agreement can be terminated with 15 days’ notice by either side.

Q5. What are the charges?
The service starts from USD 300/month, depending on responsibilities.

Final Thoughts

Appointing a professional resident director in India ensures your company remains 100% compliant without compromising control. With Business Setup Private Limited, you get the confidence of working with experienced Chartered Accountants who understand Indian corporate, tax, and compliance laws.