Requirement of having a Resident Director:
- Section 149(3) of the Companies Act, 2013 provides that every Company shall have at least one director who has stayed in India for a total period of at least 182 days during the financial year.
- In the case of a newly incorporated company, the requirement of Resident Director shall apply proportionately at the end of the financial year in which it is incorporated.
If you are Incorporating a new company or having an existing company that has all the Directors who are not Residents of India, you need to hire one Indian Resident Director.
Duties and Responsibilities of Resident Director in India
- Resident Director will act as any other Director of the Company.
- He will be fully responsible as any other Director of the Company,
- Resident Director may not be involved in the operational control of the Company.
- Resident Director is usually appointed to fulfill the statutory requirements.
- Resident Director may participate in Board Meetings of the Company, wherever required.
- The Resident Director like any other Director is required to attend at least one Board Meeting in a year.
We shall be happy to provide the services of the Resident Director from our team. In case of any clarifications or for deeper discussion, feel free to revert us at services@knmindia.com
Disclaimer: Information in this note is intended to provide only a general update on the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication.
