Document is required to add a director in a private LTD company
Document is required to add a director in a private LTD company: In the dynamic world of business, a company’s success often hinges on its leadership. If you’re looking to add a director to your private limited company, it’s essential to understand the necessary documentation and the procedural requirements involved. This article outlines the key documents required for adding a director to a private limited company in India, along with a brief overview of the process.
Who Can Be a Director?
A director is a person appointed to the board of a company, responsible for its governance and strategic direction. According to the Companies Act, 2013, a director must meet the following criteria:
- Must be a natural person (not a corporate entity).
- Must be at least 18 years old.
- Must not be disqualified from being appointed as a director under the Act.
Key Documents Required to Add a Director
When adding a director to a private limited company, several documents are necessary for compliance with the legal framework. Here’s a list of the primary documents required:
- Form DIR-2 (Consent to Act as Director):
- This is a formal document wherein the propose director consents to be appointed as a director of the company. The form must be duly signed by the new director.
- Form DIR-3 (Application for DIN):
- If the proposed director does not already have a Director Identification Number (DIN), they must apply for one by submitting Form DIR-3. This form includes personal details, including name, address, and date of birth.
- Identity Proof:
- A government-issue photo ID, such as a passport, Aadhaar card, or voter ID, is require as proof of identity of the proposed director.
- Address Proof:
- A document showing the residential address of the propose director, which can include utility bills, bank statements, or any government-issued document.
- Resolution of the Board:
- A board resolution must be pass to approve the appointment of the new director. This resolution should be document in the minutes of the board meeting.
- Form MGT-14 (Filing of Resolution with Registrar):
- After the board resolution is pass, Form MGT-14 needs to be file with the Registrar of Companies (ROC) to inform them about the appointment of the new director.
- KYC Documents:
- If the propose director is an existing director but changing their designation, a declaration regarding their KYC (Know Your Customer) must also be provide.
The Process of Adding a Director
- Obtain Consent: The first step is to obtain the consent of the propose director by having them sign Form DIR-2.
- Apply for DIN: If the director does not have a DIN, they must complete Form DIR-3 and submit it along with the necessary identity and address proof.
- Board Meeting: Conduct a board meeting to pass a resolution for the appointment of the new director.
- File with ROC: Submit Form MGT-14 to the ROC within 30 days of passing the resolution, along with the necessary attachments.
- Update the Company Records: Ensure that the company’s statutory registers are update to reflect the new director’s details.
- Issue a Letter of Appointment: Once all formalities are complete, issue a letter of appointment to the new director outlining their roles and responsibilities.
FAQs:
What is the first document require to add a director?
The first document required is Form DIR-2, which is the consent of the propose director to act in that capacity.
2. Is a Director Identification Number (DIN) mandatory?
Yes, every director must have a Director Identification Number (DIN). If they don’t have one, they need to apply using Form DIR-3.
3. What identity proof is need for the propose director?
A government-issued photo ID, such as a passport, Aadhaar card, or voter ID, is require as identity proof.
4. Do I need to hold a board meeting to appoint a new director?
Yes, a board meeting must be conduct to pass a resolution for the appointment of the new director.
5. What document reflects the board’s decision to appoint a director?
The board’s decision is document in the minutes of the board meeting, along with a resolution for the appointment.
7. Can an existing director be appoint again under a new designation?
Yes, an existing director can change their designation, but a declaration regarding their KYC must be provide.
8. What address proof is need for the new director?
A document showing the residential address of the propose director, such as a utility bill or bank statement, is need as address proof.
9. Is a letter of appointment require for the new director?
Yes, once the formalities are complete, a letter of appointment outlining roles and responsibilities should be issue to the new director.
10. Can I consult someone for assistance with the process?
Yes, it is advisable to consult a company secretary or legal expert to ensure compliance with all legal requirements and accurate documentation
To visit https://www.gst.gov.in/
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