Online Link to Act/Rule/Legislation
Initial Setup or Ongoing Maintenance
Ongoing compliance requirement
Filing and Maintenance Requirements
Every company would be required to have at least one director who has stayed in India for not less than 182 days in the previous calendar year.
This requirement needs to be complied with immediately, i.e., from 1st April 2014.
All Indian subsidiaries of foreign companies established as a company would need to have a director on board by April 1, 2014, who has stayed in India for 182 days or more between Jan and Dec, 2013. However, we await some clarifications from the Government of India on any grace period applicable to bring such a director on board.
The company and every officer of the company who is in default shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees.
Application Guidelines / Responsible Persons / Comments
Section 149(3) of the Companies Act, 2013 (Act) requires every company
to have at least one director who has stayed in India for a total period oi no1
less than 182 days in the previous calendar year. Government has received
requests from stakeholders for clarification with regard to applicability of these
provisions in the current calendar./financia1 year.
2. The matter has been examined. It is clarified that the ,residencv
requirement' would be reckoned from the date of commencement of section 14i
of the Act i.e. 1$ April, 2014, Tlne frrst ,previous calendar year, for compliance
with these provisions would, therefore, be Calendar year 2014. The period to be taken into account for compliance with these provisions will be the
remaining period of calendar year 2014 li.e. lst April to 31"1 December).
Therefore, on a proportionate basis, the number of davs for which the
director(s) would need to be resident in India. during Calendar year.2014, shall
exceed 136 days.
3. Regarding newly incorporated companies it is cladfied that companies
incorporated between 1.4.2014 to 3O.9.2O14 should have a resident director either at the incorporation stage itself or within six months of their
incorporation. Companies incorporated aJter 30.9.2014 need to have the
resident director from the date of incorporation itself.