Resident Director Services for Foreign Subsidiary in India
Appointing Resident Indian Director in Company
What is a Resident Director & Why is it Needed?
All you need to know about Resident Director Services in India!
"Our experience in managing the needs of international business and acting in the capacity of resident director for Foreign Subsidiaries of overseas entities is second to none."
"Our experience in managing the needs of international business and acting in the capacity of resident director for Foreign Subsidiaries of overseas entities is second to none."
Establishing an Indian subsidiary requires appointing a resident director, a regulatory necessity. We offer comprehensive support for seamless operations in India. Our services include regulatory compliance, company incorporation, strategic guidance, and ongoing support. Partner with us for expert assistance in navigating the complexities of the Indian business landscape.
Establishing an Indian subsidiary requires appointing a resident director, a regulatory necessity. We offer comprehensive support for seamless operations in India. Our services include regulatory compliance, company incorporation, strategic guidance, and ongoing support. Partner with us for expert assistance in navigating the complexities of the Indian business landscape.
- Incorporation of Indian Entity, including managing the setup of Indian Tax Office.
- Oversee Banking requirements in the initial setup
- Provide appropriate indemnities to protect the resident director and ensure non-resident directors have complete control over the Indian operations
- Arrange for your Indian operations to have a substituted year-end in line with head office operations
- Implement financial control and systems to manage the accounting affairs of the Indian operations in line with the reporting requirements of your head office operations
- Provide our expertise to manage the day-to-day accounting needs of the Indian operations
- Manage the ongoing financial reporting and tax compliance needs of the Indian operations to ensure the company’s affairs are accurate and lodged on time to the necessary regulatory bodies
- Provide consultative advice and support for the successful growth of the Indian operations
Under what conditions can an India company appoint a nominee director by the Companies Act?
There are certain conditions that must be met before the nominee director can be appointed. These are:
> The Appointment must comply with the conditions of any applicable legal contract the company is a part of, as well as applicable corporate laws in India.
> Parties who can appoint a director can be natural persons who possess the legal authority to do so, or a State or Central government in India.
> The nominee must represent the company or institutions' best interests at all times.
> The appointment must comply with the clauses of the business' Articles of Association, otherwise, the Articles of Association will need to first be amended to include provisions for the appointment of such a director.
Legal duties of the India nominee director
What will the Resident Director or Shareholder require before agreeing to act?
What will the Resident Director or Shareholder require before agreeing to act?
We will only provide Resident Director Services on the following conditions:
We will only provide Resident Director Services on the following conditions:
Advantages of using Resident Director Service in India
Risks of appointing a Resident Director in India
- As with all undertakings, there are some risks involved in the appointing of nominee directors. The risk is namely that the individual, as one of the company's directors, has the legal power to participate in the decision-making process and even veto certain decisions of the company, according to the Companies Act.
- However, as nominee directors are also bound by law under Section 166 of the 2013 Companies Act to always act in the company' best interests instead of his or her own self-interest, you will not have to worry about him or her making decisions that threaten your company.
- In addition, before the appointment, TAXAJ's legal team will lay out strict terms in the Nominee Director Agreement we will draft, that will prohibit the nominated person from interfering significantly in the day-to-day running of your business. The nominee director will mostly take a passive role and act on your instructions, and he or she will not have access to your corporate bank account. This will ensure that you are able to maintain full control over your company at all times.
Risks undertaken by a Resident Director India under the 2013 Companies Act
Other Foreign Company Services:
For any overseas company looking to establish an Indian subsidiary, we can provide a number of additional business registration and support services as required.
For any overseas company looking to establish an Indian subsidiary, we can provide a number of additional business registration and support services as required.
These services include the following (however additional services can be arranged on as needed basis):
- Establishment of a new Private/Public Limited Company
- Registration for GST (Goods and Services Tax)
- Opening of a business bank account
- Provision of a Registered Office Address in India
- Provision of a business address facility in India
- Related corporate secretarial services
For further information about our services including pricing please contact us.
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.
Penal Provisions
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 TAXAJ can help?
How TAXAJ can help?
- We will appoint one of our team members as the Resident Director for your company.
- Resident Director appointee will neither be a corporate bank account signatory nor play a active role in our your business.
- Resident 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 Resident Director to resign at any point of time.
- Resident Director will sign all the key corporate documents which are obligatory to be signed by the director to comply with the law of land.
- 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.
For example: Annual return, Financial Statements and other key docs as may be required by law.