This write-up invites your attention to the applicability of new provisions of Companies Act, 2013 to be complied by all companies w.e.f. 01.04.2014.
2013 Act provides a new requirement for a company to have at least 1 of the directors who is resident in India i.e. a person who has stayed in India for at least 182 days or more in the previous calendar year. [S 149(3)]
For the purpose of determining “resident” status of the director, relevant year is “Calendar year” i.e, period from 1st January to 31st December every year.
For the purpose of this compliance, a director can be a foreign director, but has to be resident in India as aforesaid.
This requirement is to be complied within 1 year from the commencement of 2013 Act or notification of rules by CG in this regard, in respect of existing companies.
For new companies incorporated from 1st April, 2014, this requirement has to be complied from the date of commencement of this Act.
We hope you find this useful. You may send your comments to [email protected]
Best regards,
Neeraj Bhagat & Co.
Chartered Accountants (An independent member of INAA Group)
www.neerajbhagat.com
New Delhi | Gurgaon