A Simplified Guide To Becoming A Director In A Company In India

Directors are the collective leaders of the company. They make the majority of decisions, guide strategy, and ensure the business complies with the applicable laws. Under Section 149 of the Act, every company needs a board of directors. Private companies need at least two, public companies at least three, and One-Person Companies (OPCs) need just one director. No board can have more than 15 directors unless shareholders vote to increase it via a special resolution.

Who Can Be a Director?

• Age Requirements: At least 21 years old. No strict upper limit, but for top roles like managing directors, it’s usually up to 70 (with exceptions via shareholder vote).
• DIN (Director Identification Number): Every person intending to be appointed as a director shall have a DIN, which is a unique ID mandated under the Companies Act, 2013.
• Residency: At least one director of the Company must live in India for 182 days a year.
• Consent: A consent to act as a director in writing and a declaration of no disqualification shall be required.

Who Cannot Be a Director?

Section 164 of the Companies Act, 2013 lists the following disqualifications for a person from being appointed as a director:

• Declared mentally unfit by a court.
• Undischarged bankrupt or in ongoing insolvency talks.
• Convicted of a crime with jail time over six months (barred for five years after sentence; permanent if over seven years).
• Banned by a court or tribunal.
• Owed money to the company for over six months.
• Involved in shady related-party deals in the last five years.
• Failed to file company returns for three consecutive years or repay debts for a year.

Appointment Process: 

Documentation Requirements :