Updated on 16 March 2022
Yes, a foreign national or foreign citizen or Non-Resident Indians residing abroad can be appointed as a Director on the Board of Indian companies whether public listed or unlisted or private. He may be appointed as Whole Time Director (Executive director) or Non – Whole Time Director (Non – Executive Director).
|Digital Signature Certificate (DSC) and Director Identification Number (DIN)
To become a Director, an individual is required to obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN).
For applying DIN and DSC, Passport Number is mandatory for Non-residents. Foreign nationals shall select the nationality as declared in the passport. The above documents are required to be certified by the Indian Embassy or apostilled by notary in the home country of the applicant.
Permanent Account Number (PAN) from the Indian Income Tax department is not compulsory required from Non-Residents.
Section 149(3) of Companies Act 2013 provides that every Company shall have at least one Director who has stayed in India for a total period of not less than 182 days during the financial year.
Even a Non- Resident can act as Resident Director of the Company provided he has stayed in India for more than 182 days in the financial year.
Companies Act 2013 does not prohibit holding of Board meetings abroad.
Also, according to Section 173(2), there is a provision for conducting Board meetings through video –conference, thereby making it simple for Non-Residents.
For more info on BM through Video Conference, please click https://bsamrishindia.com/board-meeting-through-video-conferencing-or-other-audio-visual-means/
You may also like to read: