foreign company

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tara

tara (Querist)
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06 November 2009 URGENT
whether an indian resident director is required on the board of foreign company in india

Rajnish

Rajnish (Expert)
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09 November 2009 AT present MD of Indian company must be resident. There is no requirement that director should be Indian resident.The Ministry of Corporate Affairs, which is working on a new company law, is likely to relax the existing requirement where the managing director of an MNC subsidiary must be an India resident. The new law is likely to propose that at least one director on the Board should be a resident.

However, foreign companies and MNC subsidiaries will have to follow the disclosure norms applicable to domestic companies. This is to ensure proper compliance of domestic regulations by such entities.