any special provision for NRI to became Director of company

This query is : Resolved 

04 December 2009

Our client has made a Company in 2007. There are only two directors in the Company both are Indian but for last 5 years having taken the green card at Malashia and residing there. At the time of incorporation of the Company , they have disclosed their status as resident and not NRI.
After that, they have purchased the Agriculture Land in India and payment have come through NRI A/c in foreign currency and except this, there are no activity in the Company.
Now we have to do the Audit and prepare the ROC record of the Company, pls inform us that
1. whether there is any requirement to obtain the permission from the RBI to transfer and invest the amount into India.
2. Whether NRI can become the director of the Company without any permission or there is any requirement to obtain the permission to Incorporate the Company in india or not.
Waiting for the reply

raj kumar makkad (Expert)
04 December 2009

1. Yes. RBI permission in the given matter is must.

2. The directors have become NRI after the formation of the company so permission is not required but due information is must.

n.k.sarin (Expert)
04 December 2009

Mr. Arun, NRI can become the director of the company.To incorporate the company in India you must obtain the permission from the ministry of company affairs and clearance from foreign ministry.

A V Vishal (Expert)
05 December 2009

I disagree with Mr Sarin, there is no bar on a NRI from being a director of an Indian company and neither permission from ministry of Corporate Affairs or Foreign Ministry is required by the NRI to take-up the post of directorship.

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