Stay test182 days
At least one director in India this long in the financial year.
WhoOne director
Chartered Accountants in India, working with clients across Europe
Chartered Accountants in India, working with clients across Europe
Indian company law requires every company to have at least one director who stays in India for 182 days or more in the financial year. For a European-owned subsidiary, that person matters: they sign, they attend board meetings and they carry legal duties. Tell us what you need.
We help you identify a suitable resident director, set out their role and fees in writing, and complete the appointment filings.
A new resident director is appointed before the outgoing one resigns, so the company is never left without one.
Directors need a director identification number and a digital signature to sign company filings.
Since 31 March 2026, director KYC is filed once every three financial years, plus whenever contact details change.
We prepare board meetings, minutes and registrar filings so the resident director signs off on accurate papers.
We explain the role and responsibilities to any director before appointment.
Section 149(3) of the Companies Act, 2013 says every company must have at least one director who has stayed in India for 182 days or more during the financial year. For a newly formed company, the period is counted in proportion to the part of the year it has existed.
A European parent can appoint its own people as directors, but at least one has to meet the stay test.
The resident director doesn’t have to be an Indian citizen or own shares. What matters is the days spent in India, and that they understand their duties.
At least one director in India this long in the financial year.
Director identification number, issued once.
A digital signature certificate for filings.
Once every three financial years, by 30 June, and on any change of details.
A clear appointment letter sets out the director’s role, authority and fees from the start.
Directors can face penalties when the company misses registrar filings.
Directors of companies that fail to file for three years can be disqualified.
In some cases, directors of private companies can be pursued for the company’s unpaid tax.
Responsibilities, authority, time and fees, in writing.
Identity checks and the director’s written consent to act.
Applied for where the person doesn’t already have them.
The appointment is recorded and reported within the time limit.
Board papers, filings and reminders for the director.
The resident director sits alongside your company, FDI and tax compliance.
We support parent companies in every EU country, Switzerland and Norway, entirely online.
Tell us about your Indian company and what the role involves. We’ll set out the options, responsibilities and fees.
General guidance based on the Companies Act, 2013 and the rules under it as they stand. It is not legal advice for your situation; please contact us before acting on it.