{"id":11492,"count":1,"description":"Introduction\u00a0<\/b>\r\n\r\nUnder Section 149(3) of the Companies Act, 2013, every company must have at least one director who has stayed in India for a total period of not less than 182 days during the financial year.<\/b> This is commonly referred to as the <\/span>resident director requirement<\/b>. The purpose is to ensure that an Indian company has at least one director who maintains a sufficient presence in India and can support the company's statutory and governance responsibilities. The requirement applies irrespective of whether the company also has NRI or foreign directors. <\/span>Companies Act, 2013 \u2013 India Code<\/span><\/a>\r\n\r\nThe resident director requirement is based on <\/span>physical stay in India<\/b>, rather than Indian citizenship. Therefore, an Indian citizen living abroad may not automatically satisfy the requirement, while a foreign national who stays in India for the prescribed period may potentially qualify, subject to the applicable law. Companies should monitor the director's stay during each financial year to ensure continued compliance. The law also provides specific treatment for companies incorporated during the relevant financial year, where the requirement applies proportionately as prescribed. <\/span>Ministry of Corporate Affairs<\/span><\/a>\r\n\r\nFor example, an Indian private limited company may have two foreign directors and one Indian director. If the Indian director satisfies the 182-day requirement, the company can generally maintain the required resident-director structure. If none of the directors satisfies the requirement, the company should take corrective action to avoid non-compliance. <\/span>Filing Point<\/b> can assist companies with Director Appointment, including identifying suitable director structures, DIN, DSC, Board resolutions, DIR-12 and ongoing MCA compliance.<\/span>\r\n\r\nParagraph 1 \u2013 What Does \u201cResident Director\u201d Mean?<\/b>\r\n\r\nA resident director is a director who has stayed in India for the required period specified under the Companies Act. The requirement is <\/span>not based simply on nationality, citizenship or permanent address<\/b>.<\/span>\r\n\r\nKey Points<\/b>\r\n