What are the ongoing obligations of a local resident director?

A local resident director must file DIR-3 KYC annually to maintain active DIN status, attend board meetings (or provide apologies for absence), and sign any documents that require director signatures under the Companies Act. They must also ensure they spend 182 days in India in each calendar year to maintain the residency qualification.

Local Resident Director Service in India | Savlana Init

India Entry · Resident Director

Local Resident Director Service — India Compliant. Director on Board.

Provide a qualified local resident director for your Indian company to meet the Companies Act 182-day residency requirement — with nominee director agreement, DIR-12 filing, and annual DIR-3 KYC management.

Section 149(3) of the Companies Act 2013 requires every company incorporated in India to have at least one director who has been physically present in India for a total period of not less than 182 days in the previous calendar year. For foreign companies establishing an Indian subsidiary or for overseas promoters setting up an Indian company, this requirement can be a significant barrier — particularly in the early stages when no resident Indian employee or promoter is available to serve as a director.

A local resident director service provides a qualified, resident Indian professional who is appointed to the company's board purely to satisfy this statutory requirement. The appointment is backed by a nominee director agreement that clearly defines the scope of the director's role — limited to fulfilling the legal residency requirement — and protects them from liability arising from the company's business operations. Operational control and all business decisions remain entirely with the actual promoters or parent company management.

We provide qualified resident director professionals with active DINs who can be appointed via Form DIR-12 within days of engagement. We manage the nominee director's annual DIR-3 KYC, coordinate their attendance at or apologies for board meetings, and ensure they are removed cleanly via DIR-12 when the company appoints a permanent resident director. This is a fully managed service — not just a name on the board.

Our Resident Director Services

Nominee Director Appointment

Appointment of a qualified local resident director via board resolution and Form DIR-12 filing with the MCA — completed within 2–3 working days.

Nominee Director Agreement

Drafting and execution of a comprehensive nominee director agreement protecting the resident director from operational liability and defining their limited role.

Annual DIR-3 KYC Management

Annual DIR-3 KYC filing for the resident director to maintain active DIN status and avoid DIN deactivation during the engagement period.

Board Meeting Coordination

Coordinating the resident director's attendance at or formal apologies for board meetings to maintain proper board records and quorum compliance.

Document Execution Support

Where required, the resident director executes statutory documents, resolutions, and forms that require a director's signature under the Companies Act.

Resignation & Director Change Filing

Clean exit via board resolution and DIR-12 when the company appoints a permanent resident director — fully managed with MCA filing.

Registered Office Address (Optional)

Optional registered office address service for companies that also need a physical registered office address in India for their MCA filings.

Ongoing Corporate Compliance

Ongoing MCA annual compliance — MGT-7, AOC-4 — to ensure the company's ROC record remains clean throughout the nominee director engagement.

Our Process

Engagement & Agreement

We execute a nominee director agreement with the company, clearly defining the scope, liability protection, fees, and exit terms of the engagement.

Board Resolution & DIR-12 Filing

A board resolution is passed appointing the resident director and Form DIR-12 is filed with the MCA within 30 days of appointment.

Statutory Register Update

The Register of Directors is updated with the new director's details, DIN, DSC, and date of appointment in the prescribed format.

Annual KYC & Meeting Management

DIR-3 KYC is filed annually; board meeting attendance or apologies are coordinated to maintain clean board records.

Exit When No Longer Needed

When the company appoints a permanent resident director, the nominee director resigns via board resolution and DIR-12 is filed for a clean exit.

Why It Matters

✓Meets Companies Act Section 149(3) residency requirement immediately

✓Nominee director agreement protects the director's liability

✓Appointment completed within 2–3 working days of engagement

✓Full operational control remains with your promoters or parent

✓Annual DIR-3 KYC filed — no DIN deactivation during engagement

✓Board meeting attendance coordinated and documented properly

✓Clean exit filing when permanent resident director is appointed

✓Optional registered office address available alongside director service

Frequently Asked Questions

Section 149(3) of the Companies Act 2013 mandates that every company incorporated in India must have at least one director who has stayed in India for a total period of not less than 182 days in the previous calendar year. Foreign companies incorporating an Indian subsidiary often lack a locally resident person to fulfil this requirement, making a nominee resident director service necessary.

A nominee or local resident director is an individual appointed to the board purely to satisfy the resident director requirement of the Companies Act. They are protected by a nominee director agreement that limits their liability and ensures they have no operational authority over the company. The real control and management remains with the actual promoters or foreign parent.

To appoint a local resident director, the company needs to pass a board resolution authorising the appointment, file Form DIR-12 with the MCA, and execute a nominee director agreement protecting the resident director from liability. The resident director must provide their DIN and DSC.

A nominee director bears the same statutory duties and potential liabilities as any other director under the Companies Act. However, a well-drafted nominee director agreement, combined with limitation of the director's role to the minimum required by law, significantly limits practical exposure. The nominee director should not sign cheques, execute major contracts, or take any operational decisions.

Yes. The local resident director can be removed at any time by passing a board resolution and filing Form DIR-12 with the MCA. Once the company appoints a permanent director who is resident in India for 182 days, the nominee director's role is no longer required. The exit is straightforward and involves standard board documentation and ROC filing.

A local resident director must file DIR-3 KYC annually to maintain active DIN status, attend board meetings (or provide apologies for absence), and sign documents that require director signatures under the Companies Act. They must also ensure they spend 182 days in India in each calendar year to maintain the residency qualification.

Need a local resident director for your Indian company?

We provide a qualified resident director, execute the nominee agreement, file DIR-12, and manage annual KYC — so your company meets its Companies Act residency obligation from day one.