List of Documents Required for a foreign director
Here are some of the necessary documents required for a foreign director for incorporation of the company
- Digital Signature Certificate to be obtained by providing proof of address and proof of Identity (passport).
The foreign national must have a DSC that is a digital signature useful in filing online forms. Applying for DSC will ask for three major documents that are as follows:-
- Photograph
- Address proof like driving license, bank statement or utility bill that must not be older than 2 months
- Passport
The copies of the above documents must be notarized by a Public Notary and be apostilled by the competent authority in their country of residence.
- Director Identification Number (DIN) to be obtained prior to such appointment as a Director;
DIN is the most important compliance that must be followed to be a director in a company as it’s the identification number of the directors existing in a company. So, before desiring to become a director in an Indian company, a foreign national must obtain a DIN. For obtaining DIN, some documents required are as follows:-
- Passport Size photograph
- Proof of Identity (Passport)
- Proof of Address
- Copy of Citizenship
- Authority Letter from the existing director of the company in which appointment if proposed to be done.
- Filing of form DIR-12 with the Registrar within 30 days of his appointment in the Board meeting of the Company.
On the MCA Portal, you will find the form DIR-12 which you need to file along with the following documents:-
- DIR-2: Consent to act as Director of the Company
- DIR-8 (Intimation by Director about his interest in other entities and Disqualification under section 164 of the Companies Act, 2013).
- Letter of Appointment from the company.
- Resolution passed by the Company for his/her appointment.
Along with the above mentioned documents, photograph, address proof, proof of residence, verification by applicant for applying for allotment of DIN in Form DIR-4 and the specimen signature are also required by a foreign director for incorporation of company.
Where the foreign national is applying for DIN for becoming a foreign director in an Indian Company, details of a valid passport is necessary to file in Form DIR-3 and along with it, a certified copy of the same must be attached with the DIN application.
Where the foreign director is having multiple valid Indian visa or Person of Indian Origin card or Overseas Citizen of India card, then the attestation could also be done by a Public Notary/Gazette Officer in India or a practicing-chartered accountant/company secretary/cost accountant.
Foreign National as a Director under FEMA
As per Foreign Exchange Management Act 1999, foreign nationals are eligible for sitting fees, remuneration, commission, travel expense same like the facilities availed by other directors of the company. However, FEMA Act restricts foreign nationals to acquire a property situated in India.
Moreover, foreign nationals are allowed to hold and maintain a foreign currency account with a bank outside India and receive or remit the whole salary payable to them for their service.
FEMA mandates a foreign national to have a valid employment visa, to become a foreign director in an Indian company.
Beneficial Read
- The foreign director can be appointed as an “Independent Director” if he/she possesses the necessary skills in the field related to the legal world.
- A foreign national must not be sentenced for more than 6 months in any offense
- The age prescribed for being a foreign national is between 21 -70 years
- Foreign nationals must not be insolvent or convicted of any offense in the past
- Foreigner must have a valid employment visa
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