Appointment of Foreign Director
What is Appointment of Foreign Director?
A Company being an artificial person, is managed and controlled by its officers called the directors of the company. According to the inclusive definition under the Companies Act, 2013, a Director means a Director appointed to the Board of a company. 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).
Does Appointments of Foreign Director Requires RBI Approval?
No, RBI has clarified that under the Foreign Exchange management Act,1999, appointment of foreign national as a director in an Indian company does not required RBI approval.
Is Din mandatory for foreign directors?
Yes, Every director whether foreign or Indian should have DIN.
What are the minimum formalities to become a director in Indian Company?
To become director in Indian company the directors should have
•
Director Identification Number
•
Digital Signature Certificate
Documents Required for Appointment of Foreign Director
Process Involved
Step 1
Arrange Documents
Step 2
Apply for DIN
Step 3
Arrange Documents for Appointment
Step 4
Prepare board Resolution
Step 5
Documents Received
Step 6
Appoint while uploading DIR-12 form
