- Appointment of an NRI Director in an Indian Company- Documents required and Step wise process of appointing an NRI Director
- India is continuously proving to be the favourite spot for investment for Foreigners and NRIs, that is the reason that India has seen a steady in flow of global companies coming to India, set up their business and expand their operations in India. The Indian Subsidiaries Both the new as well as existing Indian subsidiaries of foreign companies tend to depute trusted foreign personnel/non-resident Indians (NRIs) employed with them as their representatives in India in the form of directors or other key managerial personnel. In this article we have discussed about an Appointment of an NRI Director in an Indian Company. Find out the documents required and step wise process to appoint an NRI Director.
- In India Company Registration becomes a bit easy when it is Incorporated with an NRI Director.
- Documents required for the appointment of an NRI Director
- ü Photographs
NRI director
- ü Passport
of the NRI director
- ü Notarized
copy of address proof (latest Telephone, Electricity Bill, Bank Statement) of
NRI director
- ü Pan
Card, if any
- ü Aadhaar
Card, if any
- ü Consent
to act as director in form DIR-2
- ü Copy
of resolution passed by the shareholders
- ü Notice
for shareholders meeting
- Note: For the Appointment of an NRI as a director in an Indian Company or for company incorporation in India with an NRI director, all the documents need to be self-attested. Also, the documents need to be either apostille or notarized
- The Process of appointment of NRI Director in Indian Company
- Consent of the Director in Form DIR 2
- ü The
first step towards appointing an NRI Director in a company is to take consent
of the proposed NRI Director.
- ü The
Consent of the proposed director to act as a Director in Indian company shall
be filed in Form DIR 2 with all the necessary Documents.
- Apply DSC and DIN of proposed Director
- ü The
next step would be to apply for Digital Signature Certificate (DSC) and DIN of
the proposed Director of the Company. As far as DSC is concerned if he does not
have the DSC, He shall obtain the DSC from the certifying authorities of India.
- ü While
the Director Identification Number is concerned, if the NRI Director does not
have the DIN, the first thing he needs to do is to inform the company about the
same.
- ü Then
the company shall pass a resolution regarding the same and apply for the DIN of
the proposed Director in form DIR 3.
- ü The
company shall file DIR 3 KYC with all the necessary KYC documents.
- ü The
DIN so allotted shall be once only for the lifetime of the Director.
- Call for a Board Meeting and EGM
- ü The
appointment of the director shall be made in a general meeting of the company.
- ü In
this regard, the company shall issue notice to all the shareholders of the
company informing them about holding an Extra Ordinary General Meeting of the
company.
- ü Once
the notice to call for EGM is issued to all the shareholder, the next step
shall be to hold the meeting on the decided date and time and pass all the
necessary resolution for the Director’s Appointment of Director in the Company.
- Issue letter of Appointment of an NRI Director
- ü After
passing the resolution, the next step would be to issue letter of appointment
to the NRI Director of the company.
- ü The
Appointment letter must mention terms and conditions of the appointment of the
NRI Director including the salary to be payable to him.
- File Form DIR-12 to ROC
- ü Once all the necessary steps are completed, the company should file Form DIR 12 to Registrar of Companies within 30 days from the date of appointment of the Director along with all the necessary documents.
- Conclusion
- When an NRI is involved in Incorporation of an Indian company he can act as Resident Director of the Company provided, he has stayed in India for more than 182 days in the previous calendar year.
