Understanding Nominee Director Services in India
According to the requirements of Sub Section (3) of Section 149 of the Companies Act, 2013, each Indian Company shall have at least one Local Resident Director staying in India for a total duration of not less than one hundred and eighty-two (182) days during the financial year. It is essential to appoint a trusted person to act as the resident Director of your India company. Our nominee director services are assured to be of high-quality service and are one of the finest in the sector in India.
This clause of the Companies Act, 2013 primarily affects solely held subsidiary corporations with only International Directors.
What Are the Power and Duties of Nominee / Resident Director?
Resident/ Nominee Director shall have all the power and duties which are defined by the other directors of the India Company but subject to the approval of the board. He/she shall abide by all the provision for Directors defines under the Companies Act, 2013.
What Are the Penal Provisions?
If a Company breaches this provision of the Companies Act, 2013, the Company and any of the Company’s default officers shall be punished with a fine, not less than 50 thousand Indian Rupees but which may increase to 5 Lakh Indian Rupees.
How Nominee Director Services in India can help:
- They will appoint a team member as the Local Resident Director for the India company.
- Nominee director appointee will not be the signatory for corporate bank account and not play an active role in the business.
- A nominee director is merely the Resident Director of the Company to fulfil the local statutory requirement (Law of Land requirement).
- The Company will be solely responsible for the daily business activities.
- The Company will sign a legal contract outlining the terms and conditions and limitations of the Resident Director’s appointment.
- The Company can ask the Nominee Director to resign at any point in time.
- The Nominee Director will sign the important corporate papers which are obligatory to be approved by the Director to comply with the law of the land. For example, Annual Returns, Financial Statements and other critical docs as may be required by law.
- The Company must have a vigorous system to comply with the law of the land. You may ask the Nominee Director Services in India for the annual compliance and maintenance of statutory records and register services.
- The charges for Resident Director Services will be based upon the level of risk in the business the same shall be provided upon request.
- Businesses may also avail the service of Shareholder as well as Annual Compliance Services.
Why You Need Nominee Director Services in India?
- Every Indian Company Mandatory is required to have at least one Resident Director as per the Indian Companies Act, 2013.
- Resident Director understands Indian business operations.
- Professionals Directors can be appointed on board with Fixed Remunerations.
- Saving on India visit expenses.
- Faster processes for legal registrations and filings.
- Grow your Indian business without fear of non-compliance.
In summation, a nominee director is someone who is renting his or her name to you. In other words, this person’s name is used for the incorporation documents, not yours.
Contact us today if you need nominee director services for your India company.