NRIs, foreign residents and foreign nationals are all permitted to be directors in India companies. This is of utmost importance with globalization and the rise of rewarding opportunities in India. Here are some some of the fundamental necessities for an NRI to be a director of an Indian company.
Can a NRI be a Director of an Indian Company ?
The Companies Act of 2013 permits NRIs, foreign residents and foreign nationals to become directors of companies in India. NRIs and foreign nationals must obtain a Director Identification Number (DIN) and Digital Signature Certificate (DSC) in order to become a director of an Indian company.
A private limited company needs a minimum of two directors. A public limited company needs at least three directors. There has to be no less than one Indian citizen director living in India in the company set up by NRIs or foreign nationals.
Office Address of company for NRI Directors
The company must have an office address in India before getting incorporated. The NRIs and foreign nationals must guarantee that the company has an office in India. Proof of office address in the form of the sale deed or rental agreement, must be submitted along with the incorporation application.
If the company’s office is a leased or rented property, an NOC (No Objection Certificate) from the owner of the rented or leased property must be submitted in order for it to be used as an office space.
The documents required by NRI Directors for incorporating a company in India are as follows:
- Proof of identity
- NRI PAN card
- NRI Aadhaar card, driving license, voter ID, if any
- Current address proof such as a copy of the driving license, bank statement or any utility bill in the country of residence (not older than two months)
The current address proof has to be notarised by public notary in the country of residence and apostilled by the Indian Embassy in the foreign country.
Process of Company Registration In India for NRI Directors
The procedure for registration in an Indian company for NRIs and foreign nationals follows many of the same steps as the incorporation of a company by Indian directors and shareholders. This is the process:
- Suggested NRI and foreign national directors need to obtain DSC
- Suggested NRI and foreign national directors need to obtain DIN
- Registration on the MCA (Ministry of Corporate Affairs) portal and filing of Form SPICe+
- Upload all the company related documents, including e-MoA and e-AoA
- The Registrar will issue the Incorporation Certificate after verification of the application and the documents.
To ask any questions related to the rights of NRIs, PIOs, and OCIs, you can download SBNRI App from the Google Play Store or App Store. You can also use the SBNRI app for investment in stock market/ mutual funds, NRI account opening, tax filing, etc. To ask any questions, click on the button below. Also, visit our blog and YouTube channel for more details.
FAQs
The Companies Act of 2013 permits NRIs, foreign residents and foreign nationals to become directors of companies in India.
The office must have an address before getting incorporated.
An NOC (No Objection Certificate) from the owner of the rented or leased property must be submitted in order for it to be used as an office space.
A private limited company needs a minimum of two directors. A public limited company needs at least three directors. There has to be no less than one Indian citizen director living in India in the company set up by NRIs or foreign nationals.
