Form DIR-12 is filed with the ROC to record directorship changes, including new appointments. It must be filed within 30 days of appointment.

Local Resident Director in India

Q: Does this requirement apply to foreign subsidiary companies?

Yes, the requirement applies to all companies registered in India, including wholly-owned subsidiaries of foreign companies.

Q: What is DIR-3 KYC and why is it important?

DIR-3 KYC is an annual filing every director must complete. Failure results in DIN deactivation, disqualifying the director from acting in that capacity.

Q: What are the penalties for not having a resident director?

The company and every officer in default may be liable to penalties. Prolonged non-compliance can trigger regulatory action by the ROC.

Meet the Mandatory Resident Director Requirement Under the Companies Act, 2013

Under Section 149(3) of the Companies Act, 2013, every company incorporated in India must have at least one director who has stayed in India for a total period of not less than 182 days in the previous calendar year. This requirement applies to all companies, including foreign-owned subsidiaries, and non-compliance can attract penalties and regulatory action.

Our local resident director service is commonly used alongside public limited company and one person company registrations. Foreign companies entering India often combine this with our outsourcing services to establish a compliant local presence quickly.

Our Local Resident Director Services

Resident Director Appointment

Appointing a qualified and compliant resident director who fulfils the 182-day requirement under the Companies Act.

DIN & KYC Compliance

Ensuring the appointed director's DIN is active and annual DIR-3 KYC filings are completed on time.

Board Resolution Drafting

Preparing board resolutions and consent letters required for director appointment and changes.

ROC Filing for Appointment

Filing Form DIR-12 with the Registrar of Companies to officially record the director appointment.

Ongoing Compliance Monitoring

Tracking annual KYC filings, disqualification checks, and statutory obligations of the resident director.

Director Change Support

Assisting with resignation, replacement, and re-appointment procedures when required.

Our Approach

Reviewing the company's existing directorship structure for compliance gaps
Identifying and appointing a suitable Indian resident director
Drafting consent letter, board resolution, and DIR-2 declaration
Filing Form DIR-12 with the ROC within the statutory deadline
Maintaining ongoing KYC compliance and monitoring disqualification status
Coordinating director changes, as and when required

Benefits of Appointing a Local Resident Director

Ensures statutory compliance with Section 149(3) of the Companies Act
Avoids penalties, adjudication, and disqualification of the company
Enables foreign-owned companies to operate legally in India
Provides a compliant local point of contact for regulatory purposes
Reduces risk of ROC striking off the company for non-compliance

Why Choose Us?

Thorough understanding of directorship compliance under Indian company law
Quick appointment process with minimal disruption to business operations
Proactive monitoring of KYC and disqualification requirements
Experienced in handling both Indian and foreign-owned company structures
Reliable and responsive support throughout the engagement

Frequently Asked Questions

What is the residency requirement for a director under Indian law?

Under Section 149(3) of the Companies Act, 2013, at least one director must have stayed in India for a total of not less than 182 days during the immediately preceding calendar year.

Does this requirement apply to foreign subsidiary companies?

Yes, the resident director requirement applies to all companies registered in India, including wholly-owned subsidiaries and joint ventures of foreign companies.

What is Form DIR-12?

Form DIR-12 is filed with the Registrar of Companies to record changes in directorship, including the appointment of a new director. It must be filed within 30 days of the appointment.

What is DIR-3 KYC and why is it important?

DIR-3 KYC is an annual filing that every director holding a DIN must complete. Failure to file results in the DIN being deactivated, which can disqualify the director from acting as such.

What are the penalties for not having a resident director?

The company and every officer in default may be liable to a penalty under the Companies Act. Prolonged non-compliance can also result in the company being flagged for regulatory action by the ROC.