Appointment of Director
Director of a company is a person elected by the shareholders for managing the affairs of the company as per the Memorandum of Association and Articles of Association of the company. Since a company is an artificial judicial person created by law, it can only act through the agency of natural persons. Thus, only living persons can be Directors of a company and the management of a company is entrusted to the Board of Directors. Appointment of Directors can be required for a company from time to time based on the requirements of the shareholders of the business.
To appoint a director, the person proposing to become a Director must obtain a digital signature certificate (DSC) and director identification number (DIN). DIN can be obtained for any person who is above the age of 18. The nationality or residency status of the DIN applicant does not matters. Hence, Indian Nationals, Non-Resident Indians and Foreign Nationals can obtain DIN and be appointed as Director of a company in India.
Reasons to Add a Director
There are some reasons to add in board of directors.
- Hire new talent on the board.
- Assign operational responsibility without dilution ownership.
- Inability to work by existing directors.
- of directors fall under statuary limit.
These are the documents required to add a director in your company like;
- Passport Size Photograph of the appointed director.
- Self-attested PAN card of the appointed director.
- Require Proof of Residence like Aadhar Card, Voter Id Card, Driving License of the appointed director.
- Require Digital Signature Certificate (DSC) of the new director.
- Signed Affidavit.
- Letterhead for Board Resolution.
Process to add a new director in a Company
- The first thing which need to be done is filing for a Digital Signature Certificate for the director if he or she don’t have it.
- The new appointed director needs to file for DIN (Director Information Number), in case if they don’t have it. Because this DIN is mandatory for adding or appointing a director.
- Fill and complete the form with your all required information.
- Provide the required documents.
- The documents of the appointed director need to be verified and this whole process will take at least 20 days and more than that days.
- Filing the documents with the Ministry of Corporate Affairs.
In the Limited Liability Partnership the partners are in-charge of the carrying on the matter of the LLP. To add a Partner to a LLP, the individual proposing to wind up a Partner must acquire a computerized signature authentication (DSC) and executive distinguishing proof number (DIN). Noise can be acquired for any individual who is over the age of 18. The nationality or residency status of the DIN candidate does not matters. Subsequently, Indian Nationals, Non-Resident Indians and Foreign Nationals can get DIN and be delegated as Partner of a LLP in India.
TaxFusion is the leading business services platform in Bihar, offering a variety of services like LLP registration, trademark filing, GST registration, income tax filing and more. TaxFusion can help you appoint a director in your company. The average time taken to file for appointment of Partner is about 10 - 15 working days, subject to government processing time and client document submission. Get a free consultation for appointment of Partner by scheduling an appointment with an TaxFusion Advisor.
Duties and Rights of a LLP Partner
- General Duties
Partners of a LLP are bound to carry on the business of the LLP to common advantage, to be just and faithful to each other, and to render true accounts and full information of all things affecting the firm to any partner.
- Duty to Indemnify
Every Partner of a LP is required to indemnify the LLP for any losses caused to it by a fraud in the conduct of the business of the firm.
- Implied Authority
The authority of a Partner to bind the LLP, in case of an transaction carried on, in the usual way business is carried on by the LLP, binds the LLP.
- Rights of Partner
All Partners have right to take part in the conduct of the business of the LLP and access to inspect and copy the book of accounts of the LLP.
- Properties of LLP
All property, rights and interest in assets (tangible or intangible) acquired or developed with the money of the LLP are deemed to belong to the LLP.
Documents required for Addition or Removal of Partner
- Photograph-Passport size photograph of the partner to be appointed
- PAN Card-Self-attested PAN card of the partner to be appointed
- Proof of Residence- Aadhar Card/ Voter ID/ Passport/ Driving License partner to be appointed
- Digital Signature Certificate-DSC of the continuing partner and partner to be removed
- LLP Agreement-LLP Agreement executed while registration and the modifications thereto