Can a Non residential Indian (NRI)become a director of a Private Limited Company?? And is there any restrictions set by the RBI on his share holding in the Pvt. Ltd.Company ??
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NRI Directorship??
Replies (3)
Yes, NRI can be a Director in Pvt Ltd. Co.
To the best of my knowledge there is no restriction on shareholding.
CA Rajesh Poddar
Hello: 9820989383 (Mumbai)
Yes, A NRI can be a Director of Pvt Ltd Company. The extent and manner of shareholding will depend upon the Industrial policy because in certain there is restriction on the foreign investment, and A NRI director can own only upto the level of maximum permissible investment.
CS Mukesh Arora
Nowhere in the Companies acts qualifications (eg. Mini./Max Age, min.education, citizenship) for directorship are given only disqualification are given under section 274.
So you can interpret that a NRI can be a director of the company.
And as far as share holding of NRI in pvt company is concerned it will be governed by FEMA Act and i didnt learnt fema yet but i can say there are some provisions reagrding such shareholding.
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