Resident Director is a mandatory requirement to setup a company in India.
The relevant section is Section 149 (1) of the Companies Act, 2013, which states:
“Every company shall have a whole-time director or a manager who has been residing in India for a total period of not less than 182 days in the immediately preceding calendar year.”
Therefore, it is mandatory for foreign companies to appoint a Resident Director who has been residing in India for a minimum of 182 days in the preceding calendar year. This requirement is to ensure that the company has a local representative who is familiar with the laws and regulations of the country and can assist the company with its operations in India.
Do you offer resident Director Services in India?
- We offer Resident Director Service to clients along with Periodic and Annual Compliance services. These compliances help in maintaining the company in good standing.
- He will not be authorized to sign any document or bank transactions on behalf of the company
- An undated resignation letter will be signed and handed over to you so that you can remove him anytime
- In case of any non-compliance you will indemnify the director and he will resign on his own
- You need to appoint 2 directors in addition to our resident director.
- The company will be required to procure Directors’ and Officers’ Liability insurance.
Steps to appoint our Indian resident director:
- Initial Due Diligence – Incase of new company we need the documents like Passport and address proof of foreign directors
- Preparation of agreement – We will prepare and share the agreement for your review
- Documents and other details – After the agreement is signed we will share all the documents with you for company setup and bank account opening.
Fees for resident director services:
The fees starts from USD 200/month
Frequently asked questions
A Resident Director in India must be an individual who is a resident of India and has been residing in the country for a minimum of 182 days in the preceding calendar year.
One Resident Director is mandatory for every foreign company operating in India.
If a foreign company does not appoint a Resident Director in India, it may face penalties and legal consequences. The company may also face difficulties in conducting its business operations in the country.
Yes, a Resident Director can be removed from their position by following the procedures outlined in the Companies Act, 2013 of India. The procedure may involve a vote of no confidence by the shareholders or a decision made by the Board of Directors.