MCA circular on applicability of requirement of “Resident Director'

MCA circular on applicability of requirement of “Resident Director”

Section 149(3) requires every company to have one “Resident Director” who has stayed in India for not less than 182 in the previous calendar year. 

MCA vide its circular No. 25/2014, dated 26th June 2014, has clarified that ‘residency requirement’ would be reckoned from the date of commencement of the Act i.e. 1^st April 2014. The first previous calendar year for compliance of this provision would be calendar year 2014. The period to be taking into account for compliance of this section will be remaining period of calendar year 2014 (i.e. 1^st April to 31^st December 2014)-

Companies incorporated between 1^st April to 30^th Sep 2014 should have resident director at the time of incorporation or within 6 month of their incorporation.  Companies incorporated after 30^th Sep. 2014 need to have the resident director form the date of incorporation itself.

http://mca.gov.in/Ministry/pdf/General_Circular_25_2014.pdf

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