Resident Director

As per the provisions of Sub Section (3) of Section 149 of the Companies Act, 2013, Every Company shall have at least one Director who stays in India for a total period of not less than one hundred and eighty-two (182) days during the financial year.

Some Companies call it a Nominee Director.

K2Y Director Services
  • We will appoint one of our professionals as the Resident Director for your Company.
  • The Director will act as a non-executive on the Board of the Company.
  • The Company can ask the Director not to play the role of bank account signatory or any role in the business.
  • The Director is merely the Resident Director of the Company to fulfill the local statutory requirement (Law of Land requirement).
  • The Company can ask our Nominee Director to step down.
  • The Nominee Director will sign the vital corporate documents, which are obligatory to be signed by the Director to comply with the law of the land.
  • The Company must have a robust system to comply with the law of the land.

This provision is particularly important with the registration of a Private Limited Company, Wholly Owned Subsidiary, or a Public Limited Company in India.

Board Meetings

India Company Law permits to conduct Board Meetings via audio-video visual means/ through video conferencing. A Director is required to attend at least one Board Meeting in a year to avoid disqualification.

The Resident Director on the Board assists the Company to meet the quorum of the Board Meetings if the Non-Resident directors are not available.

Duties of Resident Director
  • Resident Director shall have all the power and duties defined for other Directors of the Company subject to the approval of the Board. He shall abide by all the provisions for Directors defined under the Companies Act, 2013.
  • Sometimes, the Non-Resident chooses to appoint an employee to the Board of the Company, but generally, they establish an Independent Professional Director to avoid any type of conflicts or personal interest at any point of time.
  • Resident Director is familiar with India Law and help to provide the right direction and to suggest compliance in a better way, to add value.
  • Resident Director can represent the Company before the local authorities wherever and whenever required the presence of the Director.
  • Resident Director make it convenient for the Company to obtain commercial registrations.
Penal Provisions

If a Company contravenes this provision of the Companies Act, 2013. In that case, the Company and every Officer of the Company who is in default shall be punishable with a fine which shall not be less than Fifty Thousand Indian Rupees. Still, it may extend to Five Lakh Indian Rupees.

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K2Y Services

Our consultancy team at K2Y assists businesses in dealing with the most challenging aspects of projects. We assist with nominee Director appointments, facilitate nominee shareholders, consulting & filings thereon. We also provide ad hoc Professional local director support, with expertise in local laws, regulations, and requirements. In addition to Resident Director services, we offer Indian company formation, registered office and resident shareholder services, and related post-incorporation services, including incorporations and shelf documentation and value-added post-incorporation work (VAPI), including foreign exchange management or foreign direct investment and set-up current bank account, etc.

K2Y enables multinational businesses to confidently and quickly establish a presence in India via our international incorporations, corporate secretarial services, book-keeping and taxation services, and HR and payroll services.

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