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 ??
Rajesh Poddar
(Chartered Accountant)
(321 Points)
Replied 29 December 2008
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)
CS Mukesh Arora
(Service)
(85 Points)
Replied 29 December 2008
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
gourav
(student)
(113 Points)
Replied 29 December 2008
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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