Appointment of Directors2023-09-28T22:10:08+05:30

Appointment of Directors in Company

An individual person can be appointed as a Director in the Board of the Company to manage the day-to-day affairs and carry out business transactions after following the due process of law.

20000+ Happy Clients | 100+ Professionals | 300+ Partners

Free Consultation

Get response within 15 minutes

    >

    Easy payment options available No spam. No Sharing. 100% Confidentiality

    Businesses Incorporated

    10000+ Businesses Incorporated

    Guaranteed Filing
    Within 24-Hours
    5/5 Google Rating

    5/5 Google Rating
    100% Satisfaction Guaranteed

    100% Guaranteed Satisfaction Policy

    How it Works

    Appointment-of-Directors in-Company-process-step1

    Enquiry

    Reach us out for assistance

    Appointment-of-Directors in-Company-process-step2

    Free Consultation

    Get professional support in minutes for free

    Appointment-of-Directors in-Company-process-step3

    Documentation

    Our team completes your task after detailed discussion

    Appointment-of-Directors in-Company-process-step4

    Work Done

    You job is completed with hassle free business support.

    Appointment of Directors in Company

    Shareholders/owners appoint directors in a company to manage its affairs since the company, being an artificial entity, requires natural persons to conduct business activities and handle day-to-day affairs. The Board of Directors plays a crucial role in ensuring the success and profitability of the business.

    The company appoints the initial directors, known as First Directors, during its incorporation through the Articles of Association (AOA). Subsequently, additional directors can be appointed by the company based on shareholder requirements. The AOA of the company contains provisions governing the addition or removal of directors.

    Who shall be appointed as a Director of Company?

    • There are no specific qualifications required for appointment of a person as director of company under the law.
    • However, only a natural person can be appointed in a company and any body-corporate, association, firm or any other artificial person cannot be appointed as director.
    • A person should be above 18 years of age and shall have a valid Director Identification Number (DIN)
    • Further, the person should not be Disqualified from being appointed as Director

    Who cannot be appointed as a Director of Company?

    The act specifies certain disqualifications that would prevent a person from being appointed as a director of a company. A person will not be eligible for directorship if they meet any of the following conditions:

    • He is of unsound mind
    • He is an undischarged insolvent
    • He is adjudged insolvent/applied to be an insolvent
    • He is convicted by a court for an offence and imprisoned for at least 6 months and post imprisonment for 5 years has not elapsed.
    • If he/she has been convicted of any offence and sentenced for a period of seven years or more, he shall not be eligible to be appointed as a director in any company.
    • The court and tribunal have declared him disqualified for appointment as director.
    • Not paid any calls on shares of the company held by him.
    • Convicted of any offence dealing with related party transaction and 5 years have not elapsed
    • He does not have Director Identification Number (DIN) or holds a Deactivated DIN

    Advantages of Appointment of Directors in Company

    • Hiring of new talent or experts

      The company can effortlessly appoint new talent, experts, or professionals as directors to enhance the efficiency and development of its operations.

    • Gain superior control

      The majority group of shareholders generally exercise control and power through the Board of Directors. Since a director is responsible for the day-to-day affairs of a company, the group stakeholders always prefer to be appointed as directors on the Board.

    • Succession Planning of the Company

      Succession planning is a practice followed by a company to pass on directorship roles to aspiring individuals within the organization. This process ensures the smooth continuation of the company’s business after the retirement or departure of current directors.

    Minimum Requirements of Appointment of Directors in Company

    • Digital Signature Certificate (DSC) of the Applicant

    • Director Identification Number (DIN) of Applicant

    • Consent by the applicant to act as Director of the Company

    • Approval by the Board of Director or Shareholders of Company on Applicant’s Appointment.

    What Is Included In Our Appointment of Directors in Company package?

    • Consultation on process of Appointment of Director

    • Verification of Documents and Information provided

    • Preparation and Filing of Form DIR-12 for Appointment of Director

    • Government Challan and Acknowledgement number

    Procedure for Appointment of Directors in Company

    • Collection of required Information and Documents

      In the first step, we will collect the necessary information and documents as per the checklist. Subsequently, we will verify and confirm the provided documents and information.

    • Application for Digital Signature Certificate (DSC)

      Once we receive the required documents, we will proceed to apply for the Digital Signature Certificate (DSC) on behalf of the applicant/proposed director to enable them to digitally sign the forms. If the applicant already possesses a DSC, this step can be skipped.

    • Application for Director Identification Number (DIN)

      Once the DSC is generated, we will proceed to apply for obtaining the Director Identification Number (DIN) for the applicant/proposed director. After obtaining the DIN for the director, we will proceed with the appointment process. If the applicant already has a DIN, this step can be skipped.

    • Filing of Form DIR-12 for Appointment of Director

      In the next step, we will prepare and submit Form DIR-12 to the concerned Registrar of Companies (ROC), along with the required attachments, documents, and payment of the necessary fees.

    • Approval for Appointment by ROC

      After processing the form, the Registrar of Companies (ROC) will send an intimation of approval via e-mail.

    Documents Required for Appointment of Directors in Company

    • Proof of Identity — Income Tax PAN for (Mandatory for Indian Citizen) and Passport (Mandatory for Foreign Citizen)

    • Proof of permanent and present address (Any One): Passport / Driving License / Election card / Aadhaar card / Ration card / Electricity bill / Telephone bill.

    • In case of Indian Applicant, the documents should not be older than 2 months from the date of filing of the form and in case of foreign applicant, address proof should not be older than 1 year from the date of filing of the Form.

    • Passport sized Photograph of the Applicant

    • Any other Document as may be required

    FAQ

    How much time is needed for appointment of director in a company?2021-10-10T18:29:08+05:30

    On average, it takes 4-5 working days for appointment of director by filling form DIR-12. However, this is also dependent on approval of government authority.

    Is physical presence of director required during the process of appointment of director?2021-10-10T18:28:41+05:30

    No, the process is a completely online process. All the required documents are filed electronically, so you would not need to be physically present at all. You would just need to send us scanned copies of all the required documents & forms.

    What is Director Identification Number (DIN)?2021-10-10T18:27:28+05:30

    DIN is a unique Identification Number allotted to an individual who is appointed as a director of a company, upon making an application in form DIR-3 pursuant to section 153 & 154 of the Companies Act, 2013.

    Is DIN mandatory for a person to be appointed as director?2021-10-10T18:22:12+05:30

    Yes, an individual should hold a valid DIN before being appointed as a director in any company.

    Who appoints the director in a company?2021-10-10T18:21:38+05:30

    The shareholder of the company can appoint the director in a company as per the requirement under the meeting duly held. The board of directors can also appoint additional directors (by the articles of association) and they shall hold office only upto the date of next annual general meeting or the last date on which the annual general meeting should have been held (whichever is earlier). Such director can be regularised in the AGM with the consent of shareholders.

    I am already a director in a company, can I become director in another company also?2021-10-10T18:20:39+05:30

    Yes, any individual holding a valid DIN can become a director in a maximum of 20 companies at a time.

    Can a shareholder become Director of a Company?2021-10-10T18:18:30+05:30

    Yes, a shareholder can become a director of a company.

    Whether shareholders approval is required for appointing director in a company?2021-10-10T18:18:02+05:30

    Yes, shareholders approval under the general meeting is required for appointing director in a company.

    Can a person holding NRI status also become director of a company?2021-10-10T18:17:27+05:30

    Yes, any individual whether resident in India or not can become a director of a company in India with the required documents.

    Can a non-Indian citizen / foreign person become a director of a company in India?2021-10-10T18:16:53+05:30

    Yes, any non-Indian citizen or foreign person can also become a director of a company in India with the required documents.

    Who appoints an Additional Director?2021-10-10T18:13:47+05:30

    The board of directors can appoint additional directors (by the articles of association) and they shall hold office only upto the date of next annual general meeting or the last date on which the annual general meeting should have been held (whichever is earlier). Such director can be regularised in the AGM with the consent of shareholders.

    Free Consultation

    Get response within 15 minutes

      Easy payment options available No spam. No Sharing. 100% Confidentiality

      Why Registration Arena

      Affordable-pricing

      Affordable pricing

      Registration Arena offers various packages at different prices with flexible payment options made to best suit your budget.

      Professional-team

      Professional team

      With a combined experience of 10+ years, our CA, CS and Legal experts ensure your work is done conveniently with utmost accuracy and timeliness.

      Best-in-class-customer-service

      Best in class customer service

      We are always keen on speaking to our customers and resolving their queries. Have any doubt? Contact us without any hesitance through email, phone WhatsApp, or contact form

      250000+ startups love us !

      quote-icon
      post-thumbnail-image

      "...Masters in Company Registration and Compliance"

      Masters in company registration and compliance. Highly professional & polite team. Top marks for communication, systems and processes they follow. Their working style is like a "Fire & Forget Missile". Submit the requisites to them and sit back & relax. If they say "it will be done", then "consider it already done". Getting a Support Fulcrum like Registration Arena is a Truly Amazing Experience. We highly recommend them!
      Smita Shetty
      Founder , Guru Shah Associates
      quote-icon
      post-thumbnail-image

      "...100 percent professional"

      They supported us at every stage of setting up our company in India. They went above and beyond what would be considered necessary with helping us with warehousing and drug licensing applications. 100% professional service and I will definitely be using them for the further expansion of our business in India and beyond. I can't recommend them highly enough.
      Jonathan Bryne
      Managing Director , Lipsia Pharma Pvt. Ltd.
      quote-icon
      post-thumbnail-image

      "...Truly the professionals"

      One word that comes to my mind when I speak about these guys that is Professionalism. They are truly the professionals when it comes to any kind of business registrations. Extremely professional, ethical and knowledgeable service provider. I'm extremely satisfied and content with their working style. They take care of every single thing relevant to client. Close your eyes and go with Registration Arena.
      Rakesh Yadav
      Founder , NUVIQO AGRI BIOTECH PVT LTD
      Go to Top