Practice Areas

The Legal Mandate Under Section 149(3) of the Companies Act, 2013, every company registered in India must have at least one director who has stayed in India for a period of not less than 182 days during the previous calendar year. For foreign promoters, international parent companies, or NRIs operating from abroad, this can be difficult to manage without an existing local presence. How Resident Director Services Work To bridge this gap, consulting firms, Chartered Accountants (CAs), and legal advisory agencies in India provide professional or "nominee" resident directors. Statutory Compliance: The appointed individual fulfills the RoC (Registrar of Companies) requirements so your business remains compliant. Limited Liability: These are typically non-executive appointments. The resident director does not have managerial, financial, or operational control over the company's daily business—they are strictly appointed for statutory governance. Board Meetings: Under India Company Law, the resident director assists in meeting quorum rules and ensures attendance at required board meetings. Risks & Safeguards While utilizing a resident director service keeps your operational details private, it is crucial to employ proper legal safeguards: Legal Agreements: You must have robust documentation and a Directors and Officers Liability Insurance (D&O) policy in place to cover liabilities. Restricted Access: Ensure your arrangement specifies that the resident director only has limited access to due diligence and bank statements for governance, and cannot make unilateral decisions without foreign beneficial owner approval.