Can NRI become a board member in a pvt ltd company

In my view.......Companies Act is silent about the residential status of the Director...No where it is mentioned that NRI is ineligible for being appointed as Director. Hence a NRI can become a director. Regarding tax exemptions We never came across of specific exemtions for  firms that managed by NRIs.

Better to post your query with an expert.

Dear Mr. Anwar

There is no restriction on appointment of NRI as director of the Indian company.However in case of appointment of NRI as MD you must comply some procedural requirements under Companies Act, 1956.

Dear Ajay,

Appreciate your expert comment. This sounds genuine when you refer that DCA.

Thanks much.\

Dear Mr. Anwar

You can see the details regarding incorporation matter and director in the circular no. 1/95 dated 16-2-1995 issued by DCA.

Regards

dear mishra sir

                               can u pls tell me did the first auditor need to inform the roc for his appointment as a statutory auditor of private limited company?

Hello Anwar,

Section 286 of the Companies Act provides that notice of every meeting of the Board of Directors  of a Company must be given in writing to every director for the time being in India, and at the usual address in India to every other director. However,telephonic invitation/oral can not amount to the notice within the meaning of Section 286.( R.Khemka Vs Deccan Enterprises  (P) Ltd. 1998.

In view of the above section it is clear that if an NRI appointed as board member it is difficult to call board meeting and other board proceedings, since he is residing abroad.Though there is no express prohibition to appoint an NRI as Board member practically there are difficulties to appoint an NRI as Board member by complying with Section 286 of The Companies Act.

However, The Institute of Company Secretaries of India (ICSI) has, through its Secretarial Standard-1(SS-1),Suggested service of notice by e-mail or any other electronic mode also. However, where a director has specified a particular mode the notice should be given by that mode only.

With Best Regards,

Kiran Kumar V

Auditor appointed in the newly Incorporated Company need not to give the Intimation to ROC.

ONE OF MY CLIENT IS A AMERICAN CITIZEN BUT LIVING IN INDIA FROM LAST 3 YEARS .  HE IS PRESENTLY DIRECTOR OF A PRIVATE LIMITED COMPANY OF WHICH I AM THE CA.  HE NOW WANTS TO BE MD OF THE SAID PRIVATE LIMITED COMPANY.  CAN YOU TELL ME: IF THERE ARE ANY RESTRICTIONS OR NORMAL PROVISIONS APPLY.

There should be no restrictions on NR becoming MD of the Company.

explain the procedure for NRI to be a director and major shareholder in indian pvt. lmt. company?

Incase if there are only two directors in the private limited company, is it possible to appoint any one of them as a director of a company being NRI ??? in such cases how can we fulfill the requirement of quorm for meeting ??

Yes, appointment can be made.

It is advisable to maintain proper record of Borad meetings held through video conferencing.

With Regards