Resident and Nominee Director Services for Foreign Subsidiary Company
March 31, 2020
Are you looking for Resident Director in India
As per the provisions of sub section (3) of section 149 of companies Act, 2013, Every company shall have at least one director who has stayed in India for a total period of not less than one hundred and eighty-two (182) days in the previous calendar year.
This Provision applies to all the companies w.e.f. 26th June, 2014.
Wholly owned subsidiary Companies with only Foreign Directors are mainly impacted by this provision of companies Act, 2013.
Power and duties of nominee/resident director:-
Resident/ Nominee Director shall have all the power and duties which are define for other Director of the company but subject to the approval of Board. He shall abide by all the provision for directors defines under Companies Act, 2013.
If a company contravenes this provision of companies act, 2013 then the company and every officer of company who is in default shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees.
How Startup Solicitors LLP India can help-
- We will appoint one of our team members as the Resident Director for your company.
- Nominee director appointee will neither be a corporate bank account signatory nor play a active role in our your business.
- Nominee director merely the resident director of the company in order to fulfill the local statutory requirement (law of land requirement).
- You will be solely responsible for daily business activities.
- You will sign a legal contract outlining the terms and conditions and limitations of the resident director’s appointment.
- You can ask our nominee director to resign at any point of time.
- Nominee director will sign all the key corporate documents which are obligatory to be signed by the director to comply with the law of land.
For example: Annual return, Financial Statements and other key docs as may be required by law.
- You must have a vigorous system to comply with the law of land. You may ask for our annual compliance and maintenance of statutory records & registers services.
- Our fees for resident director services will depend upon the level of risk in the business the same shall be provided upon request.
- Our client may also avail the service of shareholder as well as Annual Compliance Services.
Amendement in provisions of Resident Director
As per provision of Companies Amendment Act, 2017 Resident Director who stays in India for a total period of not less than one hundred and eighty-two days during the financial year.
But this amendment is still due to come into force.