Appointment of Non Resident Director-procedure

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Balkrishna sharma

Tax and Audit Professional

35 Points Joined November 2009

Facts:

ABC PVT LTD is a company incorporated under the Companies Act,1956. Mr.X and Mr.Y are the two directors of the company. They are both residents. Mr X and Mr.Y have incorporated a company in US under the name of ABC LLC.

The directors of ABC Pvt Ltd. want to appoint Mr.Z, a foreign national, citizen of US as a director in the company.

Query : -

1. What is the procedure of appointing Mr.Z as a director in the Indian Company. The documentations and procedure which will be required.

2. Mr Z wants to indtroduce some capital say 1000US$. How can the company take it?

3. Will it be better if The indian Company ABC Pvt Ltd becomes the holding company of ABC LLC and the money can be routed through ABC LLC?

Regards

Balkrishna Sharma

Replies (4)

raspreet kaur

job

55 Points Joined January 2009

1. for appointing a foreign national as a director, you simply have to pass a BR for appointment & then such appointment needs to be confirmed in GM by way of ordinary resolution. The documents to be filed are F-32 with ROC.

2. For alloting shares to foreign nationals you will have to comply with the RBI guidelines.

FIle FIRC with the RBI through the AD within 30 days of receipt of money.

Allot the shares within 6 monthe from the date of inward remittance of funds.

File Form FC-GPR within 30 days of allotment.

3. for making ABC LLC as subsidiary you'll have to comply with FEMA regulations for ODI