1. Legal Eligibility of Foreign Nationals
- Yes, a foreign national can be appointed as a director of a Section 8 company in India.
- The Companies Act, 2013, does not prohibit foreign nationals from holding directorships.
- They can serve in both executive and non-executive roles, including on the board of non-profit entities.
- Their appointment must comply with applicable laws and documentation standards.
- The same rules apply whether the company is private or public.
2. Director Identification Number (DIN) Requirement
- A foreign national must obtain a Director Identification Number (DIN) before appointment.
- This requires submission of identity and address proof, duly apostilled or notarized.
- DIN is applied through the SPICe+ form during incorporation or separately via DIR-3.
- Proper identification documents, such as a passport and utility bills, are required.
- DIN ensures legal traceability and recognition by the Ministry of Corporate Affairs.
3. Digital Signature Certificate (DSC)
- A valid Digital Signature Certificate (DSC) is mandatory for electronic filings.
- Foreign nationals must obtain a DSC from a licensed Certifying Authority in India.
- DSC is used to sign incorporation forms, returns, and other statutory filings.
- The process for foreign nationals includes additional verification steps.
- DSC must be renewed periodically as per regulatory norms.
4. Residency Requirement and Board Composition
- At least one director of the company must be an Indian resident, even if other directors are foreign nationals.
- An Indian resident is someone who has stayed in India for 182 days or more during the previous financial year.
- A foreign national cannot fulfill this requirement unless they meet the residency criteria.
- The presence of a resident director ensures regulatory accessibility and local governance.
- The foreign national can be appointed alongside the resident director.
5. Compliance and Documentation
- All foreign director documents must be properly authenticated (notarized/apostilled).
- The company must declare the appointment through statutory filings with the Registrar of Companies.
- Foreign directors are subject to the same compliance obligations as Indian directors.
- The duties and liabilities under the Companies Act legally bind them.
- Regular filings, board meeting attendance, and disclosures are expected as part of compliance.
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