Appoint a Director

What is a Director Identification Number??

Director Identification Number (DIN) is an 8-digit Unique Identification Number allotted to all existing and new directors. It is a mandatory requirement and without DIN no person can become a director. Obtaining DIN has been made mandatory as earlier people would incorporate companies such as chit fund and raise money from people and cheat people. Now Ministry keeps DIN database to map all the people who hold director position in any company. The DIN directory contains all information regarding the directors, such as their name, PAN number and also their present address. Any change in the address or other information needs to be updated immediately. .

Is there any eligibility criteria for adding a new Director??

Yes, there is and it is as follows 1. The proposed individual must be a major. 2. He or she must qualify as per the laws mentioned under the Companies Act, 2013. 3. The Members of the Board must consent to the appointment of the proposed individual. 4. It must be noted that the Companies Act does not mention any educational qualification in order to be eligible to become a Director. .

Should I apply for another DIN, if I already have one??

No, a DIN or Director Identification Number is permanently allotted and can hence, be used for a lifetime. Therefore, once it is allotted, the same number may be used for multiple appointments and resignations.

Can a Company appoint another Corporate Body as its working Director??

As per the Companies Act, 2013, only individuals can serve as Directors of Public and Private Limited companies. Therefore, a corporate body cannot be appointed as a Director of any company in India. Therefore, if any LLP or Private Limited Company wants to serve as a Director, they must send a representative and then appoint that person as a Director.

Can a Company add a Foreigner or NRI as a Director??

Yes, an NRI or Foreign National may be added as a Director in a Private Limited Company. In order to do so, they must have a valid Passport and a DIN. In case they do not have a DIN, they must apply for the same via the Company they wish to become a Director of. However, as per the Companies Act, 2013, at least one Director on the Board must be an Indian Resident and the rest may be foreigners or NRIs.