- The Resident Director definition is given under section 149 (3) of Companies Act 2013.
- Resident Director is the Director of the company who reside in India for Minimum 182 days in Previous Financial year.
- As per the above section, every company have one resident Director in the Board of Directors.
- The company registered in between 1st April 2014 to 3oth September 2014 then he required to appoint Resident Director
- at the time of Company registration or
- within 6 Month of Company registration.
- Any company registered after 30th September 2014 is required to have a Resident Director in his Board of Directors at the time of company registration
HOW TO FORM INDIAN SUBSIDIARY OF FOREIGN COMPANY IN INDIA
- Incorporation of Company (Private or Public Limited Company) in India as Wholly Owned Subsidiary (100% Shares held by the Parent company) of Foreign Company (The parent company incorporated outside India) or
- Joint Venture (two or more company jointly hold the Company in agreed proportion) or
- Open Project or Liaison or Branch office in India.
REQUIREMENTS FOR INDIAN SUBSIDIARY COMPANY REGISTRATION
- The Company having one Resident Director & Indian Citizen in the Board of Directors of the Indian subsidiary of foreign company.
- The other directors of any nationality in Boards of Directors (BODs)
- The permitted & Legal Activities carried out by Indian subsidiary of a foreign company is as per Foreign Exchange Management Act (FEMA) & Reserve Bank of India (RBI) guidelines.
- All the documents of other Directors or Members are Certified/Checked by Indian Consulate and their respective country where they reside.
- Passport is Mandatory for all Directors and Members (if Individual) otherwise Memorandum of Association (MOA) & Articles of Association (AOA) of Parent Company.
- Declaration by all non-resident Directors/members for not having PAN Card and certified the authority of their origin country.
DOCUMENTS FOR INDIAN SUBSIDIARY COMPANY REGISTRATION
- Memorandum of Association (MOA) & Articles of Association (AOA) of the Parent Company.
- All the documents of the Directors, Members & Parents company Certified & Notarized by the Authority of the country of origin.
POWER OF RESIDENT DIRECTOR
- The Resident Director of the company has all the power which is exercised by the normal director of the company as per companies act 2013 & Company MOA & AOA but subject to the approval of the Board of Directors.
HOW EstellaConsultancy HELP YOU
- Estellaconsultancy provides a facility of Resident Director for foreign Subsidiaries
- The person appointed as Resident Director is non-executive director, means he has not actively participated in the following activities are;-
- Key Decision making;
- Business Affair;
- Don’t have a banking signing power;
- Day to day working;
- Not having signing Authority of the behalf of other Directors;
- The Resident director is provided here for only fulfil the Statutory Duties/provisions of Company act 2013 & Mutually decided Terms & Conditions like:-
- Annual Return;
- Board Report;
- Board Meeting (if Permitted);
- Statutory Registers etc.
- A legal contract will be signed between Resident Director & Other Directors/members to Decide its duties in the company.
- Company may ask the Resident Director to resign from the board of Directors anytime.
- Estellaconsultancy.com is provided with all services related to
- Company Registration;
- Annual Compliance;
- Appointment of Resident Director or Nominee Director or Executive Directors;
- Change in Shareholding;
- Increased Authorised Capital;
- Maintain Books of Accounts & etc.