An Indian company can have foreign directors on its board. … A foreigner or a non-resident Indian can become an executive or a non-executive/independent director of Indian companies whether public or private. Following are the relevant laws applicable to a foreign national as a director in an Indian company.
Can a company have foreign director?
Foreign nationals are allowed to become Directors of an Indian Private Limited Company. The Board of Directors of the Indian Private Limited Company must have one Director who is both an Indian Citizen and Indian Resident. However, there is no requirement for the Indian Director to be a shareholder in the Company.
Can salary be paid to foreign director?
Any payment of remuneration to Foreign Directors is subject to Income Tax. If the foreign national is employed in India, the required TDS has to be reduced from the remuneration payable to him in accordance with Section 192 of the Income Tax Act.
How many foreign directors can a company have?
The Board of a company can comprise Indian residents and foreign nationals. However, an Indian company must have at least one director who is an Indian citizen. The Board cannot contain only foreign directors. A foreign national can be appointed as an executive or an independent director in an Indian company.
How do you appoint a foreign national director?
A foreign national, wants to become a full-time or managing director, should be a resident of India who has been living in India constantly not less than twelve months, immediately before the date of his appointment. He should not be less than 21 years of age or not more than 70 years of age.
Can a foreigner be a CEO?
(See Corrections & Amplifications item below.) When McDonald’s and Coca-Cola named new chief executives earlier this month, few investors or employees seemed to notice or care that the new leaders of the two American business icons weren’t Americans.
Can foreigners be subscriber yes or no?
Ans: Yes a foreign Company can become a Parent company of the Indian Subsidiary holding 100% shares. Indian Laws allow you to retain 100% ownership by subscribing shares of Indian company.
Can a director be an NRI?
There is no restriction on the private limited companies from appointing non-resident Indians as their directors. The requirements or procedural formalities that need to be completed by such NRI who wants to become a director are the same, like the requirements that are to be fulfilled by an Indian resident.
Are directors paid salary?
Whether it is Managing director or whole time directors. A company having only one managing director, whole-time director or manager shall not pay more than 5% of its net profits. A company has more than one such directors, remuneration shall be payable not more than 11% of the net profit.
Can an MD be a NRI?
No, a NRI cannnot be a managing director of a resident company as managing director is a person with day to day work in the company. If a company have its operations outside India and he is looking into day to day work of that perticular company outside india then yes.
Can a foreigner become a partner?
Yes, an NRI can become a partner in Indian partnership firm and he further can contribute to the capital of the firm subject to certain conditions. For any NRI to become a partner in a partnership firm there is no restriction, however, the law restricts the foreign investment by NRI by way of capital to the firm.
What is the difference between Indian company and foreign company?
Difference between foreign companies and Indian companies : Foreign companies are operated from the following countries and the Indian companies are operated from the India. … The foreign companies are more independent and the Indian companies.
What does foreign company mean?
“foreign company” means any company or body corporate incorporated outside India which,— (a) has a place of business in India whether by itself or through an agent, physically or through electronic mode; and. (b) conducts any business activity in India in any other manner.
Can a foreign director give loan to Indian company?
Yes. A director can give loan to the company. There are no restrictions.
Is PAN card mandatory for foreign directors?
This signifies that every person, whether resident or non-resident in India, who is a director in an Indian Company that has financial transaction of Rs. 250,000/- or more in a financial year will have to compulsory obtain Indian PAN card.
How many managing directors can a company have?
Section 203 of the Companies Act 2013 depicts you cannot have two managing directors in a particular company. The Companies Act 2013 says that you cannot have two Managing Directors in a particular company. So, even after Private Limited Company Registration, a private company cannot appoint two MDs at the same time.