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Resident director requirement for Indian companies

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Section 149(3) of the Companies Act requires every company to have at least one director who has stayed in India for a total of 182 days or more in the financial year. Foreign founders setting up an Indian subsidiary or startup must plan for this.

How residency is counted

  • The test is physical stay in India for 182 days or more during the financial year (April to March), not citizenship.
  • For a newly incorporated company, the requirement is applied proportionately to the period of the first financial year.
  • An Indian citizen living abroad may not meet the test; a foreign national living in India can.

Options for foreign founders

  • Appoint a trusted India-based co-founder or senior employee as a director.
  • Appoint a professional resident director, with clear contractual limits on their role and liability.
  • Relocate a founder to India for the required period.

If the company falls short, it is a default under Section 149, and it should appoint a resident director promptly.

Frequently asked questions

The member of an OPC must be an Indian citizen; the residency requirement for OPC members is 120 days.

This guide is general information, not legal advice. Government fees and procedures change; confirm current figures before you file.

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