All You Need To Know About Charity Company Formation With Foreign Directors.

All you need to know about charity company formation.

An investor can be a person or a corporate entity. In any case, a Director must be a person. Foreign nationals are permitted to become Directors of an Indian Company according to the law. The Board of Directors of the Indian Company must have one Director who is both an Indian Citizen and Indian Resident. There are no limitations as far as citizenship or residency. In this manner, NRI or foreign nationals can be directors in an Indian charity Company. Yet, no less than one of the directors in the board of directors must be a resident of India. Likewise NRI or foreign director might be an executive or non-official executive for the charitable company in India.

India as one of the fastest developing economies on the world attracts a lot of Foreign Direct Investment (FDI) and Private Equity capital. With the world's second biggest population and a large talent pool of talented IT experts, India continues to be an attractive destination for investment among Foreign Companies and Foreign Nationals. In this article, we give a thorough manual about whether we can form a charity company with foreign directors. The registration procedure for charity company formation with foreign directors is given below,

ü  The Company must have no less than 2 shareholders &  Directors are essential.

ü  The Directors and the Shareholders can be the same individual.

ü  Personality Proof: Copy of the Permanent Account Number (PAN).

ü  Proof of Address: Copy of a legitimate Passport/Driving License/Aaadhaar Card/Telephone or Electricity Bill, not more seasoned than 2 month.

ü  A recent passport size photograph of the Directors/Promoter.

ü  Incase if the workplace premises are taken on lease then A Rent Agreement or Leave and License Agreement is obligatory.

ü  The Utility Bill of the registered office.

ü  The Consent to act as the Director in the Form DIR-2

ü  The details of Directors’ Directorship in any other Companies/LLPs, if any.

ü  Obtaining Digital Signature Certificate (DSC) and Directors Identification Number (DIN) for each of the directors and promoters of the company.

ü  Name Approval - an application should be filed in Form INC-1 to the Registrar of Company (Central Registration Centre – CRC of Ministry of Corporate Affairs).

ü  Draft the Memorandum of Association and Articles of Association of the proposed organisation in Form INC – 13.

ü  Record an application in form INC 12 alongside the endorsed expenses to register for a permit.

ü  Structures like Form No. INC – 7, Form No. INC – 22, Form No. DIR – 12 alongside the proper records are to be documented with ROC.

The Companies Act, 2013 (the Act) does not expressly characterise an outside resident/foreigner. An Indian national, and resident, might be treated like a foreign resident if he or she has not been remaining in India for a year constantly quickly going before the date of his or her arrangement as an executive. (Schedule V). In any case, the time of 182 days of stay in India is important to call a person resident or non-resident. On the off chance that a man has remained in India for 182 days then he will become an Indian citizen from the preceding year. A foreign citizen remaining in India for a year may appreciate all rights under the Act however similar rights are not accessible to a Non-resident Indian (NRI) citizen.

In this way a NRI or foreign national can be designated as an executive/subject to rules given in the important acts. These days it is normally observed that foreign citizens run Indian entities from abroad through Indian directors. So it is an undertaking of the Ministry of Corporate Affairs that such directors fulfil the rules so as to ensure transparency in business. 

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