The foreign individual or non-resident Indians residing out of India can become an executive or a non-executive/independent director of Indian companies whether public listed or unlisted or private. As per section 2(34) of the Companies Act 2013, the “director” means a director appointed to the Board of a company.
Can a company have foreign director?
Foreign nationals are allowed to become Directors of an Indian Private Limited Company. The Board of Directors of the Indian Private Limited Company must have one Director who is both an Indian Citizen and Indian Resident. However, there is no requirement for the Indian Director to be a shareholder in the Company.
How many foreign directors can a company have?
The Board of a company can comprise Indian residents and foreign nationals. However, an Indian company must have at least one director who is an Indian citizen. The Board cannot contain only foreign directors. A foreign national can be appointed as an executive or an independent director in an Indian company.
How do you appoint a foreign director?
Appointment of directors under Companies Act, 2013
The individual including a foreign national appointed as a Director shall not act as a Director unless he offers his written consent to act as director in Form DIR-2. This consent must be filed with the Registrar within 30 days of his appointment.
Is PAN mandatory for foreign directors?
This signifies that every person, whether resident or non-resident in India, who is a director in an Indian Company that has financial transaction of Rs. 250,000/- or more in a financial year will have to compulsory obtain Indian PAN card.
Can salary be paid to foreign director?
Any payment of remuneration to Foreign Directors is subject to Income Tax. If the foreign national is employed in India, the required TDS has to be reduced from the remuneration payable to him in accordance with Section 192 of the Income Tax Act.
Can foreigners be subscriber yes or no?
Ans: Yes a foreign Company can become a Parent company of the Indian Subsidiary holding 100% shares. Indian Laws allow you to retain 100% ownership by subscribing shares of Indian company.
Can a director be an NRI?
An NRI or foreign director may be an executive or non-executive director. 1. As per 266A of the Companies Act, every individual, who wants to be appointed as director of a company should apply for a Director Identification Number (DIN) to the Registrar of Companies (ROC) in the prescribed DIN Form [DIN-I form].
Can a foreigner become a partner?
Yes, an NRI can become a partner in Indian partnership firm and he further can contribute to the capital of the firm subject to certain conditions. For any NRI to become a partner in a partnership firm there is no restriction, however, the law restricts the foreign investment by NRI by way of capital to the firm.
What is the difference between Indian company and foreign company?
In India, a foreign company is mandated to follow special or modified provisions as compared to a domestic company. … A ‘foreign company’ is defined as an entity which is incorporated outside India, but has a place of business in India or conducts any business activity in India in any other manner.
Can a foreign director give loan to Indian company?
Yes. A director can give loan to the company. There are no restrictions.
Can a foreigner start a company in India?
A foreign / offshore legal entity or person can act as a founder of the Indian company which will be owned 100% by the foreign citizens or companies. There is no legal requirement for one shareholder or director to be Indian citizen.
How many managing directors can a company have?
Section 203 of the Companies Act 2013 depicts you cannot have two managing directors in a particular company. The Companies Act 2013 says that you cannot have two Managing Directors in a particular company. So, even after Private Limited Company Registration, a private company cannot appoint two MDs at the same time.
Can a person become director with PAN?
Any individual who is a director or intends to become a director of a company should apply for DIN. All the directors of a company must obtain a DIN. It is mandatory for e-filing of forms and documents and PAN cannot be used as an alternative to DIN.
Can a foreign company obtain PAN in India?
Foreigners PAN Application Procedure
Foreign nationals and foreign entities who wish to obtain PAN in India can make an application in Form 49AA. Application for PAN can be made online. However, a copy of the signed PAN application must be signed and sent to the NSDL office in India.