Add a Director
Starting From Rs.4399
All inclusive price
Directors play a key role in the functioning of a private limited company; they make day-to-day decisions for business operations, and they are the key person in whom the company's shareholders place their trust. In this article, we will look at how a company can legally add a new director to its board of directors in India.
Contact Us
ADDING A DIRECTOR
The first stage in appointing a director in a corporation is to obtain a permission letter from the other directors in DIR-2, as well as confirmation of identity and address. Aside from that, further documents should be obtained from the potential Directors, such as a disclosure of interest in MBP-1 DIR-8 statement.
PROCEDURE FOR ADDING A DIRECTOR
Obtain Consent of Proposed Director:
The first stage in appointing a director in a corporation is to obtain a permission letter from the other directors in DIR-2, as well as confirmation of identity and address. Aside from that, further documents should be obtained from the potential Directors, such as a disclosure of interest in MBP-1 DIR-8 statement
Digital Signature of Proposed Director :
If proposed Director does not have Digital Signature , he must obtain Digital Signature from Certifying Authority in India.
Obtain Director Identification Number (DIN):
If the prospective Director does not have a DIN number, he should inform the firm, and the company in which he is about to be appointed as a Director must approve a Board Resolution requesting him to be appointed as a Director. The company should then apply for the proposed person’s DIN number. Form DIR 3 requires the attachment of the Resolution. (This is a new condition for acquiring a DIN, as a new individual cannot just apply for a DIN if he is not going to be a director in any company.) DIN is only given to a Director once in his or her lifetime.
The Company should get the relevant KYC papers as well as educational qualification documents as required for the job. It is vital to know that there is no minimum academic requirement to occupy the post of Director in India.
Issue of Notice of General Meeting:
The Company should issue notice to all of the Company’s Shareholders for holding an Extra Ordinary General Meeting in accordance with the provisions of the Companies Act, 2013 and rules made thereunder, as well as the Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI).
Hold Extra Ordinary General Meeting of the Company :
Once the shareholders have been notified of the EGM, call the meeting and pass the necessary resolutions for the appointment of a director to the board of directors.
Issue Letter of Appointment
Now issue letter of appointment to the Director of the Company mentioning terms and conditions of appointment and salary to be payable to the Director.
File form DIR-12 to ROC
Once all of the aforementioned requirements have been completed, the company must file Form DIR-12 with the ROC within 30 days of the date of the director’s appointment. It is generally best to file Form DIR-12 the following day of the appointment to prevent late filing and additional fees.
Making Necessary entries in Register of Directors
Company should make necessary entries in the Register of Director and Key Managerial Personals
File Necessary Amendment Application to GST, Tax Authorities Other regulators
Wherever relevant, the Company must file an application for Changes in Directors Details in GSTN and Other Certificates.
WHY VAKEELJI
4 BUSINESS DAYS
At Vakeelji, we can deliver all your documentation requirements in just four working days. And if you’re not totally satisfied, we’ll take another couple of days to work on the modifications you need. All at the lowest price, both online and offline.
9.1 CUSTOMER SCORE
We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.
160 STRONG TEAM
Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we’ll try to ensure that your doubts are cleared before they even arise.
Documents required for Company Registration
- Passport Size photo of the appointee director
- Self Attested copy of PAN
- Self attested copy of identity proof (Aadhar/Passport/ Driving License)
- Self attested copy of address proof (not older than 2 months) (Bank statement/electricity bill/phone bill/gas bill/water bill)
- Incase the director is an NRI or foreign national following additional documents are required
- Passport is Mandatory
- Address proof (not older than 2 months) (Bank statement/electricity bill/phone bill/gas bill/water bill)
- These documents shall be notarized and apostilled from the same country, which has provided the documents.
Reasons to add director in India
To get new talent on board
As your business develops and evolves, you’ll need to hire more people to meet the increased demands and obstacles. It’s normal to wish to increase or decrease top-level management.
No dilution of ownership
Directors are primarily responsible for the day-to-day operations of a company. Adding or appointing an additional director helps the shareholders assign more operational responsibilities without losing any strategic control.
Inefficiency of existing directors
It could be that the existing directors cannot meet the requirements of the work or maybe even due to retirement, family problems, physical ailments or other personal reasons. In such cases, you need to add new directors.
To meet the statutory limit
Every type of company needs a certain number of directors. In case of sudden death or plans of retirement from existing directors, you will have to add another director to your company.
What is the Price I Need to Pay for addition of director?
Pay as you go grow pricing
All Inclusive Pricing - No Hidden Fee
Basic
2 Digital Signature - 2 Year Validity 1
2 Director Identification Numbers
Name Approval 2
Authorised Capital Fee 3
Incorporation Fee
Stamp Duty 4
PAN & TAN
LEDGERS Billing Software 5
Bank Account Opening
Commencement of Business
Basic
2 Digital Signature - 2 Year Validity 1
2 Director Identification Numbers
Name Approval 2
Authorised Capital Fee 3
Incorporation Fee
Stamp Duty 4
PAN & TAN
LEDGERS Billing Software 5
Bank Account Opening
Commencement of Business
Basic
2 Digital Signature - 2 Year Validity 1
2 Director Identification Numbers
Name Approval 2
Authorised Capital Fee 3
Incorporation Fee
Stamp Duty 4
PAN & TAN
LEDGERS Billing Software 5
Bank Account Opening
Commencement of Business
Frequently Asked Questions
A person cannot be appointed as a director if he doesn’t qualify under the AoA, if they are an undischarged bankrupt, or if they are restricted by a court order.
A private company can have a maximum of 15 directors.
A person cannot be appointed as a director if he doesn’t qualify under the AoA, if they are an undischarged bankrupt, or if they are restricted by a court order.
The minimum number of directors required is based on the type of company. For a one-person company it is 1, for a private company it is 2 and a public company needs to have at least 3 directors.
