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Can a foreign national be a director of a Section 8 company?

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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