Working Director Salary

I and my wife are the two directors of our company. We work full time in our company

[Pursuant to sub-section (2) of section 7 and sub-section (1) of section 8 of the Companies Act, 2013 (18 of 2013) and rule 18 of the Companies (Incorporation) Rules, 2014].

I want to know, can we get salary from our company.

If yes, what is the max salary per month we get.

 

Replies (2)
Quick Summary
This discussion clarifies whether working directors of a private limited company can receive a salary. It confirms that both directors can indeed draw a salary from the company. For private limited companies, there isn't a statutory maximum limit on the remuneration directors can receive, provided it's in line with the company's Articles of Association and any shareholder resolutions.

As Prescribed In Resolution Passed or In an Appointment letter ,If Both are having some field of experience/expertise or professional acumen then it will be out of scope of RPT u/s 188, Appointment/ Increase in remuneration ( subject to AOA) will also be confirmed later by shateholder's by ordinary resolution

For private limited company, there is no limit for remuneration as Section 197 of the Act only applies to public companies. Both directors can take as much salary as required.

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