{"id":5277,"date":"2020-03-24T16:01:22","date_gmt":"2020-03-24T10:31:22","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=5277"},"modified":"2022-09-10T14:14:53","modified_gmt":"2022-09-10T08:44:53","slug":"company-incorporation-by-non-resident-director","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/company-incorporation-by-non-resident-director\/","title":{"rendered":"Company Incorporation by Non-Resident Director"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In the eyes of law, company is an artificial person who has a separate legal entity from its members. It is the responsibility of the directors of the company to manage and control the affairs of the company. As per the <strong>Companies Act, 2013<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/acts-rules\/ebooks.html\"><strong>[1]<\/strong><\/a><\/sup>, there is no restriction on Company Incorporation by a Non-Resident Director provided that amongst all one of the directors must be an Indian. The foreign director can be an executive or non-executive director.<\/p>\n\n\n\n<p>In this topic, we will discuss Foreign\nDirectors under the Companies Act 2013 and Company Incorporation by Foreign\nDirector<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/company-incorporation-by-non-resident-director\/#Non-Resident_Director_under_the_Companies_Act_2013_%E2%80%93_An_Overview\" >Non-Resident Director under the Companies Act, 2013 &#8211; An\nOverview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/company-incorporation-by-non-resident-director\/#Requisites_for_appointment_as_a_Non-Resident_Director\" >Requisites for appointment as a Non-Resident Director<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/company-incorporation-by-non-resident-director\/#Important_points_to_be_kept_in_mind_in_the_case_of_Company_Incorporation_by_Non-Resident_Director\" >Important points to be kept in mind in the case\nof Company Incorporation by Non-Resident Director<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/company-incorporation-by-non-resident-director\/#The_procedure_of_Company_Incorporation_by_Non-Resident\" >The\nprocedure of Company Incorporation by Non-Resident<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/company-incorporation-by-non-resident-director\/#What_documents_are_required_for_DIN_Application_in_case_of_Non_-Resident_Director\" >What documents are required for DIN Application in case of Non\n-Resident Director?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/company-incorporation-by-non-resident-director\/#Takeaway\" >Takeaway<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Non-Resident_Director_under_the_Companies_Act_2013_%E2%80%93_An_Overview\"><\/span><strong>Non-Resident Director under the Companies Act, 2013 &#8211; An\nOverview<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Director is termed as a Director appointed to\nthe Board of a company. The Directors are the agents and trustee of the company\nwho acts on behalf of the company. The directors of the company look after the\nmanagement activities of the company as well as protect the long-term interests\nof the shareholders of the company.<\/p>\n\n\n\n<p>As per the Companies Act, 2013, it does not bar non-residents from becoming directors in the Indian Company. A foreigner Director can be appointed as <strong>Whole-time Director, Independent Director, Additional Director, Alternative and Nominee Director.<\/strong><\/p>\n\n\n\n<p>The appointment of Directors, including the Non-Resident directors, are governed under <strong><em>section 152 of the Companies Act 2013<\/em><\/strong>. The Non-Resident Director needs to fulfil the following conditions and possesses the requisite documents to appointed as a director in the company.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/proprietorship-firm-vs-private-limited-company\/\">Proprietorship Firm vs. Private Limited Company: Key Differences<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Requisites_for_appointment_as_a_Non-Resident_Director\"><\/span><strong>Requisites for appointment as a Non-Resident Director<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Before the\nappointment, a Non -Resident Director is required to fulfil the following\nrequirements-<\/em><\/strong><\/p>\n\n\n\n<ul><li>To obtain a Digital Signature Certificate.<\/li><li>To apply for Director Identification Number.<\/li><li>For Non-Residents Indians also, a PAN card is\nrequired.<\/li><li>Declaration by the applicant that he is not\ndisqualified from becoming a Director.<\/li><li>A consent in DIR-2 must be provided by the\nNon-Resident to hold the office as a director.<\/li><li>Submission of the documents to the Registrar of\nthe Company within 30 days from the date of appointment of Non-Resident\nDirector.<\/li><\/ul>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> All the documents are required to be notarized by the Public Notary and also apostilled by the authority of the Respective Country where the Non-Resident resides.<\/div>\n\n\n\n<p>Additionally, the documents can also be certified by the Managing Director, CEO or <a href=\"https:\/\/corpbiz.io\/learning\/the-role-of-the-company-secretary\/\"><strong>Company Secretary<\/strong><\/a> of the Indian Company, where the Non-Resident is already a Director.<\/p>\n\n\n\n<p>In the case of Indian Origin Card of a\nNon-Resident applicant or having Overseas Citizen of India Card, the documents\ncan only be attested by the Gazetted Officer in India.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Important_points_to_be_kept_in_mind_in_the_case_of_Company_Incorporation_by_Non-Resident_Director\"><\/span><strong>Important points to be kept in mind in the case\nof Company Incorporation by Non-Resident Director<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>A Non-Resident Director in an Indian Company can hold a Foreign Currency Account with the bank operating outside India.<\/li><li>He\/she must attend at least one Board meeting either by personally present in the meeting or through video conferencing.<\/li><li>There must be at least 1 Indian director (Resident Director).<\/li><li>A Non-Resident is liable for tax deduction under the Income-tax Act.<\/li><li>A Non-Resident is eligible for the remuneration, sitting fees and travel expenses from the company.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_procedure_of_Company_Incorporation_by_Non-Resident\"><\/span><strong>The\nprocedure of Company Incorporation by Non-Resident<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the Companies Act, 2013 For <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>Company registration<\/strong><\/a> by Non-Resident Director, Below-mentioned procedure is required to be followed-<\/p>\n\n\n\n<p><strong>Incorporation by a Non-Resident Director <\/strong>&#8211; As per the Companies Act,2013 there is no bar in the Company Incorporation by a Non-Resident Directors provided, one of the directors shall be an Indian Director. The Non-Indian Director can be appointed as both an Executive and Non-executive director.<\/p>\n\n\n\n<p>At the\ntime of Company Incorporation, every applicant, including the Non-resident,\nshall be allotted with the DIN. DIN Application shall be made in electronic\nform DIR-3 to the Central Government.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_documents_are_required_for_DIN_Application_in_case_of_Non_-Resident_Director\"><\/span><strong>What documents are required for DIN Application in case of Non\n-Resident Director?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Below- mentioned documents are required for application of DIN for Non Indian Director-<\/em><\/strong><\/p>\n\n\n\n<ul><li>Nationality Identification as an\nIdentification Proof.<\/li><li>Passport details(In case of Non-Resident)<\/li><li>Bank Statement\/Utility Bill\/Telephone Bill as\nan Address Proof.<\/li><li>&nbsp;Photograph (Passport size).<\/li><\/ul>\n\n\n\n<p>DIN\nshall be filed and signed by the applicant (Including Non-Resident) using\nhis\/her Digital Signature Certificate. DIN shall be valid until the lifetime of\nan applicant<\/p>\n\n\n\n<ul><li>The DIN, along with the Declaration, shall be\nfurnished by the applicant that he is not disqualified from becoming a\ndirector.<\/li><li>DIR-2 (A Consent in writing by the proposed\ndirector) to act as a director(including Non-Resident director). The same shall\nbe filed to the ROC within 30 days from the date of his appointment.<\/li><\/ul>\n\n\n\n<p><strong>Appointment of Non-Resident Director within the specified limit as per the Companies Act, 2013 &#8211; <\/strong>It shall be appointed within the limit specified under the Act. However, if the company wishes to exceed the number of appointments, it can do so by passing a Special Resolution.<\/p>\n\n\n\n<div class=\"shadow1\"> Further, DIR-12 is to be filed by the Company Secretary or the Chartered Accountant of the company to inform about the appointment of the directors, i.e. even at the time of company incorporation by Non-Resident, it is required to file DIR-12 and intimate the ROC about the appointment of Directors.<\/div>\n\n\n\n<p>At the\ntime of Company Incorporation following documents are required to be attached\nin DIR-12<\/p>\n\n\n\n<ul><li><strong>Declaration of the First Director (Including Foreign Director)<\/strong><\/li><li><strong>Consent to act as a Director.<\/strong><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Takeaway\"><\/span>Takeaway<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>At the time of Company Incorporation by the <a href=\"https:\/\/corpbiz.io\/learning\/company-incorporation-by-non-resident-director\/\"><strong>Non-Resident Director<\/strong><\/a>, he has to follow all the compliances to be followed by the Indian Resident Director. The Act does not restrict the appointment of the Non-Resident Director. However, it does not provide a similar immunity compare to the Indian Resident Director.<\/p>\n\n\n\n<p>For any query related to the appointment or related services, contact <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a>, our team of professionals will assist you by providing proper guidance and in the execution of compliances.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/director-identification-number\/\">How to Obtain Director Identification Number?\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the eyes of law, company is an artificial person who has a separate legal entity from its members. It is the responsibility of the directors of the company to manage and control the affairs of the company. As per the Companies Act, 2013[1], there is no restriction on Company Incorporation by a Non-Resident Director [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":5283,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[419],"acf":{"service_id":"1"},"authorName":"Priyanka Bajpayee","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/03\/IMG-20220303-WA0005.jpg","authorDescription":"A Company Secretary together with PG in international Business, she has gained significant experience as legal content writer. She has keen interest in doing research and writing on legal and financial subject matters. She also holds work experience in legal compliances.","postViews":11092,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5277"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=5277"}],"version-history":[{"count":18,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5277\/revisions"}],"predecessor-version":[{"id":48586,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5277\/revisions\/48586"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/5283"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=5277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=5277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=5277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}