Guide to Obtaining DIN for Foreign Directors in India: Step-by-Step Process
Obtaining a Director Identification Number (DIN) for foreign directors who wish to serve on the boards of Indian companies involves a structured process to ensure compliance with Indian corporate laws. Here’s a comprehensive guide:
Process of Obtaining DIN for Foreign Directors in India
1. Understanding Director Identification Number (DIN)
A Director Identification Number (DIN) is a unique identification number issued by the Ministry of Corporate Affairs (MCA) to individuals who intend to become directors of Indian companies. Foreign nationals are also required to obtain DIN if they wish to serve as directors in Indian companies.
2. Eligibility Criteria
Foreign nationals seeking DIN must meet the eligibility criteria specified under the Companies Act, 2013. The criteria typically include:
– Having a valid passport from their country of citizenship.
– Not being disqualified to act as a director under any provisions of the Companies Act, 2013 and relevant rules
3. Documents Required
To apply for DIN, foreign directors need to submit the following documents:
– Passport: A copy of the valid passport showing the details of the foreign director.
– Address Proof: Documents verifying the residential address, such as utility bills, bank statements, or any government-issued address proofs. These documents may need to be notarized in the foreign director’s country of residence and apostilled or authenticated as per Hague Convention requirements.
– Photograph: Recent passport-sized photograph of the foreign director.
– Consent: Declaration of consent to act as a director in an Indian company corporation.
– Digital Signature Certificate (DSC): A DSC is required for digitally signing the DIN application form and other related documents.
4. Procedure
The process for obtaining DIN for foreign directors involves the following steps:
Step 1: Obtain Digital Signature Certificate (DSC)
Before applying for DIN, foreign directors must obtain a Digital Signature Certificate (DSC) from a government-approved certifying agency. The DSC is essential for digitally signing the DIN application form.
Step 2: Application for DIN
– Foreign directors can apply for DIN online through the MCA portal (www.mca.gov.in).
– Fill out the DIN application form providing details such as name, nationality, passport number, address, educational qualifications, etc.
– Attach scanned copies of the required documents (passport, address proof, photograph, etc.) along with the application form.
-The form needs to be digitally signed using the DSC of the applicant and a practicing professional (CA/CS/CMA) in India.
-Pay the prescribed application fee.
Step 3: Verification and Processing
– Once the application is submitted online, it undergoes verification by the MCA.
– The processing time varies, but typically, the DIN is issued within a few days if all documents are in order and there are no discrepancies.
Step 4: Receipt of DIN
– Upon approval, the DIN is issued electronically and communicated to the foreign director via email.
– The DIN is valid for a lifetime and can be used for all future directorship positions in Indian companies.
5. Post-Issuance Obligations
– Once issued, the DIN must be communicated to the company where the individual will serve as a director within one month.
-The company is then required to intimate the Registrar of Companies (RoC) about the DIN of its directors through Form DIR-12.
Foreign directors must comply with ongoing obligations under the Companies Act, including filing of annual returns, attending board meetings, and other regulatory requirements.
– Ensure timely updation and disclosure of any changes in personal details or directorship positions.
Important Considerations:
– Accuracy: Ensure all information provided in the application is accurate and matches the documents submitted.
-Timeliness: The entire process should be completed within the stipulated time to avoid penalties or rejection.
-Professional Assistance: Take professional assistance to simplify the process and ensure compliance.
Conclusion:
In conclusion, obtaining a Director Identification Number (DIN) for foreign directors aiming to join Indian company boards requires meticulous adherence to the outlined process. This guide equips foreign directors with the necessary steps to navigate their roles effectively within the Indian corporate framework.
Contributed By – Mona Rawat
King Stubb & Kasiva,
Advocates & Attorneys
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