What are the compliance requirements after a company is registered?

After registering a company in India, it is essential to meet specific compliance requirements to remain operational and avoid penalties. Below are the key compliance obligations: Appointment of a Statutory Auditor: A statutory auditor must be appointed within 30 days of incorporation to audit the company's accounts. Filing of Annual Returns: Submit Form MGT-7 annually to the Ministry of Corporate Affairs (MCA) to disclose shareholder and company information. Filing Financial Statement: File Form AOC-4 annually to report the company's financial statements. Conducting Board Meetings: Hold at least four board meetings annually, ensuring compliance with company governance norms. Income Tax Filing: File ITR-6 annually, irrespective of whether the company has income or is non-operational. Maintenance of Books of Accounts: Keep accurate and updated records of all financial transactions as per legal requirements. GST Filing (if applicable): File GST returns (monthly, quarterly, or annually) depending on the company's turnover.

Can a foreign national or NRI be a director in an Indian company?

Yes, foreign nationals and NRIs can be directors of an Indian company if: 1. The company has at least one resident director who has lived in India for at least 182 days in the previous calendar year. 2. They obtain a Director Identification Number (DIN) and a Digital Signature Certificate (DSC). 3. They provide required documents, including a passport, proof of address, and a consent declaration. Note: Ensuring compliance with these requirements is crucial to avoid legal issues. Platforms like IncorpX can help with the documentation and registration process.

How can I conduct a company name search online?

To conduct a company name search: 1. Visit the MCA Name Availability Tool on the MCA website. 2. Enter your proposed company name in the search bar. 3. The system will display names that are identical or similar to your query. 4. Ensure compliance with Companies Act, 2013 naming guidelines: Avoid using restricted or offensive words. Ensure the name reflects the company's objectives. You can use the IncorpX Company Name Search Tool for quick and accurate results. Enter your proposed company name to check for identical or similar names. Ensure your name complies with the Companies Act, 2013, avoiding restricted words and aligning with your company's objectives. Pro Tip: Check the trademark database to ensure the name is not trademarked by another entity.

What is the difference between authorized capital and paid-up capital?

Authorized Capital: The maximum amount of share capital a company is permitted to issue as per its Memorandum of Association (MOA). Paid-Up Capital: The actual amount received by the company from shareholders for the shares issued. Example: If a company's authorized capital is ₹10,00,000, it cannot issue shares exceeding this value. If the paid-up capital is ₹5,00,000, this means shareholders have contributed ₹5,00,000 for the shares issued so far.

How much does it cost to register a company in India?

The cost depends on the type of company. Key expenses include: Government Fees: Name Reservation: ₹1,000 SPICe+ Form Filing: ₹2,000 (for authorized capital up to ₹10 lakh). Professional Fees: ₹5,000-₹20,000 charged by chartered accountants or company secretaries. Additional Costs: Digital Signature Certificate (DSC): ₹500-₹2,000 per director PAN and TAN: Included in SPICe+ filing. Note: Costs are subject to change based on specific requirements and additional compliance needs.

How do I open a current bank account for my company?

To open a current bank account, submit the Certificate of Incorporation, PAN, Memorandum and Articles of Association, Board Resolution authorizing account opening, and KYC documents of directors to the chosen bank.

Does a private limited company have perpetual existence?

Yes, a private limited company has perpetual existence, meaning it continues to exist regardless of changes in ownership or the death of its members.

What are articles of association and memorandum of association?

The Memorandum of Association (MOA) defines a company's objectives, scope, and relationship with external parties. The Articles of Association (AOA) outline the rules and regulations for the company's internal management and governance.

What are the penalties for non-compliance with annual filings?

Penalties for non-compliance with annual filings include: A late filing fee of ₹100 per day, per form. Disqualification of directors for up to 5 years. Fines ranging from ₹50,000 to ₹5,00,000 for the company and responsible officers. In severe cases, the company may be struck off the MCA register. Additionally, non-compliance can result in operational restrictions, making it difficult to secure funding, form partnerships, or work with government agencies. It's very important for companies to adhere to these requirements to avoid both financial penalties and long-term legal consequences.

What happens if my proposed company name is already taken?

If your proposed company name is already taken, you must choose a different name that is unique and complies with the MCA's naming guidelines. You can use the MCA Name Availability Tool to check the availability of a name.

What are the corporate tax rates for companies in India?

Domestic companies are taxed at 30%, or 25% if turnover is up to ₹400 crore, with a concessional rate of 22% (25.17% effective) for companies not claiming exemptions and 15% (17.16% effective) for new manufacturing companies. Foreign companies are taxed at 40%, with surcharge and cess applicable.

How do I verify if a company is registered in India?

Visit the Ministry of Corporate Affairs (MCA) website, use the 'View Company/LLP Master Data' tool, and enter the company's name or Corporate Identification Number (CIN) to check its registration status.

Is GST registration mandatory during company registration?

GST registration is not mandatory during company registration. However, it is required if the company's turnover exceeds ₹40 lakh for goods or ₹20 lakh for services. It is also mandatory for companies involved in inter-state supply or e-commerce activities.

What is the minimum and maximum number of shareholders allowed for company registration?

A private limited company requires a minimum of 2 shareholders and allows a maximum of 200 shareholders. A public limited company requires a minimum of 7 shareholders, with no limit on the maximum number of shareholders.

Can I register a company using a virtual office address?

Yes, you can register a company using a virtual office address, provided it is a legally valid address and you have the necessary documentation, such as a rental agreement and utility bills, to verify its authenticity.

How can ownership of a private limited company be transferred?

Ownership is transferred by drafting a Share Transfer Agreement, filling Form SH-4, paying stamp duty, updating the Register of Members, and notifying the MCA if necessary.

What are the consequences of not complying with post-registration obligations?

Non-compliance can lead to financial penalties of ₹100 per day per form, disqualification of directors for up to 5 years, legal action, suspension or revocation of the company's registration, and operational restrictions such as difficulty in securing funding or working with government agencies.

What are the differences between a business name and a trade name?

Business name is the official name registered with the MCA for legal purposes, while a trade name is the brand name used for marketing products or services. Multiple trade names can be used under one business name, but trademark laws apply for protection.

How many days does it take to register a company?

Company registration in India usually takes about 7-10 working days if all documents are in order. Delays can happen if there are issues such as name being rejected or mistakes in the documents. Using the SPICe+ form can help speed up the process since it combines multiple services like PAN, TAN, and GST registration. However, the time it takes can vary based on the type of company and any extra steps needed.

Who governs and controls private limited companies in India?

Private limited companies in India are governed by the Companies Act, 2013, regulated by the Ministry of Corporate Affairs (MCA), with day-to-day operations managed by the Board of Directors. Shareholders have the power to appoint or remove directors through voting.

What are the penalties for not complying with post-registration obligations?

Non-compliance can result in financial penalties (₹100 per day), director disqualification for up to 5 years, legal action, and damage to reputation, making it difficult to secure funding or partnerships.

What documents are required for company registration in India?

Required documents include PAN cards for directors and shareholders, passport for foreign nationals, Aadhaar or Voter ID for identity proof, bank statements/ utility bills for address proof, MOA and AOA, and proof of office address and rent agreement.

What are the steps to appoint a statutory auditor?

The Board must pass a resolution to appoint the auditor within 30 days, file Form ADT-1 with the MCA within 15 days, and ensure the auditor meets the eligibility criteria under the Companies Act, 2013.

How can I check if my company is registered?

Visit the MCA website, search using the company's name or CIN, and view the company's registration status, including incorporation date and authorized capital.

What happens if my proposed company name is rejected?

If rejected, review the feedback provided by MCA, submit a new name using the RUN service, and ensure it adheres to naming guidelines under the Companies Act, 2013.

Does a private limited company have perpetual existence?

Yes, a private limited company has perpetual existence, meaning it continues even if directors or shareholders change, ensuring stability and continuity.

What are the tax implications associated with company registration?

Tax implications include corporate tax (22% for regular companies, 15% for new manufacturing companies), GST registration for businesses exceeding ₹20 lakh turnover, and taxes on dividends, which are taxable in shareholders' hands.

What are the benefits of registering a private limited company?

Benefits include limited liability, separate legal entity, ease in fundraising, tax advantages, and a more professional image with clients and partners. It is ideal for startups and SMEs.

Expert MCA Filing Assistance

Director Appointment Filing in India

Appoint New Director in Your Company with Expert Support - Starting @ ₹2,999 Only

100% Online Process. DIR-12 Filing. 30-Day Deadline Compliance.

Form DIR-12 Filing with MCA
Board Resolution Drafting
DIN Application for New Director
DIR-2 Consent Letter Preparation
Digital Signature Assistance
Updated Master Data Extract

Expert Consultation in Minutes

What Sets Us Apart

Expert CA/CS Team

5,000+ Director Filings

Quick 3-5 Day Processing

Companies Incorporated

Successfully incorporated across India

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Rated excellent by our customers

Years of Experience

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Siddhu Manoj Founder & CEO of Two-LYP Computations Pvt. Ltd.

“Incorporating my Startup with IncorpX was an incredibly smooth and hassle-free experience. The team was highly professional, guiding us every step of the way with clear communication and prompt support. The registration process was fast, and every detail was handled with precision and accuracy. Highly recommend IncorpX for anyone starting a business.”

Abhishek Lohani Director at Lohani Learnings

“Company is good and service is also smooth. I used their compliance service and the response was timely with no delay and price are also convenient. They are always available to cater your need.”

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“I am very satisfied with the team of IncorpX for providing the top notch services. Team of IncorpX was giving the update on daily basis was one of the best thing which I experience in Corporate. keep doing it. Thank you!”

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“Don't think twice.Got my company incorporates here. Tbh very impressed by the quality of service provided by this team. Very organized and friendly team. Had a smooth and peaceful experience. Timely regular updates were provided by the team. Overall a great experience.”

Anoop Krishnan Founder of EIGHTH DAY FORGE

“It's rare to find a service provider who makes the process feel personal - IncorpX absolutely did. From day one, they patiently explained every detail without any jargon, making it easy to understand and stress-free. There was zero chasing, no delays-just efficient, smooth execution all the way through. I felt supported, heard, and confident at every step of registering my company EIGHTH DAY FORGE (OPC) Private Limited. Thanks to Mr. Sriram and his wonderful team.”

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“IncorpX made the entire registration process for our company, EKnal Technologies, smooth and stress-free. Their team was professional, efficient, and incredibly supportive from start to finish. Highly recommend them to any founder looking for a reliable partner in their business journey! Special shoutout to Sriram and Aswin-your support, clarity, and responsiveness made the whole process incredibly smooth.”

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WHY CHOOSE US?

Expert Legal Team

Experienced legal experts in company formation and corporate law.

Fast Turnaround

Kickstart your venture with efficient company setup, generally processed within a week.

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Personal manager by your side, every step of the way and beyond.

Complete Documentation

We handle all paperwork and ensure full legal compliance.

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HERE'S HOW IT WORKS

1. Fill the Form

Simply fill the above form to get started.

2. Call to discuss

Our startup expert will connect with you & complete legalities.

3. Appoint Director in Your Company

Get professional assistance with director appointment including all MCA filings.

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Director Appointment Filing Package

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Form DIR-12 Filing
Board Resolution Drafting
DIN Application (If Required)
DIR-2 Consent Letter
Declaration Forms Preparation
DSC Assistance for Signing
MCA Portal Filing & Submission
Government Fee Payment Assistance
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Filing Confirmation & Updated Master Data

*Government fees are additional and vary based on company structure

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IncorpX Prime

An all-inclusive solution for startups and expanding enterprises seeking a streamlined, compliant incorporation process.

Key Benefits

Personalised support from dedicated incorporation specialists.
Application prepared and filed within 2 days.
24/7 customer assistance.

Important Notes

We strive to register your preferred business name whenever feasible.
Alternative name suggestions are provided if the preferred name is not approved.

Package includes first-year compliance services: auditor appointment, annual filings, and related obligations.

Overview Key Features Director Types Documents Required Process Penalties FAQs

DIRECTOR APPOINTMENT FILING - AN OVERVIEW

Director Appointment Filing is a mandatory compliance under the Companies Act, 2013 that must be completed whenever a new director is appointed to a company. Every Private Limited Company, One Person Company, or Public Limited Company in India must intimate the Registrar of Companies (ROC) about any change in its board of directors by filing Form DIR-12 within 30 days of the appointment.

The appointment of a director requires a proper Board Meeting where existing directors pass a resolution to appoint the new director. The incoming director must provide their consent in Form DIR-2 and must have a valid Director Identification Number (DIN). If the person doesn't already have a DIN, it can be applied for along with the appointment.

Timely filing is crucial as delayed filings attract penalties of ₹100 per day, which can accumulate to significant amounts. The maximum penalty can go up to 10 times the normal filing fee. Directors appointed without proper filing are not recognized by MCA and cannot sign statutory documents on behalf of the company.

At IncorpX, we handle the complete director appointment process - from obtaining DIN and drafting board resolutions to filing Form DIR-12 and ensuring MCA compliance. Our expert team of CAs and CSs ensures error-free filing and quick processing so your new director can start functioning without delays.

What is a Company Director?

A Company Director is an individual appointed by the shareholders to manage and oversee the affairs of the company. Directors are responsible for making strategic decisions, ensuring legal compliance, and acting in the best interests of the company and its stakeholders. They form the Board of Directors, which is the governing body of the company.

Under the Companies Act, 2013, directors have fiduciary duties and are accountable for the company's operations. They must act with due diligence, avoid conflicts of interest, and ensure that the company complies with all statutory requirements. Directors can be held personally liable for certain defaults of the company.

Key Responsibilities of a Director:

Strategic Decision Making: Approving business strategies, budgets, and major transactions.
Compliance Oversight: Ensuring the company adheres to all legal and regulatory requirements.
Financial Stewardship: Overseeing financial health, approving accounts, and ensuring proper audits.
Stakeholder Protection: Acting in the best interests of shareholders, employees, and creditors.

Important to Know

Every company must have at least two directors for a Private Limited Company, one director for OPC, and three directors for a Public Limited Company. At least one director must be an Indian resident who has stayed in India for at least 182 days in the previous calendar year.

Key Features of Director Appointment Filing:

Understanding the essential aspects of director appointment helps ensure smooth compliance. Here are the key features of the director appointment process in India:

1. 30-Day Filing Deadline

Form DIR-12 must be filed with MCA within 30 days of the board resolution appointing the director. Timely filing avoids penalties.

2. DIN Mandatory

Every director must have a unique Director Identification Number (DIN). New DIN can be applied along with the appointment form.

3. DIR-2 Consent Required

The new director must give written consent in Form DIR-2 agreeing to act as director and confirming eligibility.

4. Board Resolution Needed

A formal board meeting must be held to pass a resolution appointing the new director. Minutes must be recorded properly.

5. DSC for Signing

Forms are digitally signed using the Digital Signature Certificate (DSC) of an existing director and the company secretary.

6. MCA Master Data Update

Upon approval, MCA updates the company's master data to reflect the new director. This can be verified on the MCA portal.

Types of Directors in a Company:

Companies can appoint different categories of directors based on their roles and responsibilities. Understanding these types helps in proper compliance:

Executive Director

Also called Whole-Time Director. Employed full-time with the company, involved in day-to-day operations and draws a salary.

Non-Executive Director

Not involved in daily operations. Provides guidance, attends board meetings, and contributes to strategic decisions.

Independent Director

Required for listed and certain private companies. Must not have any material relationship with the company. Provides unbiased oversight.

Managing Director

A director with substantial management powers. Can be appointed by board or shareholders. Responsible for overall company management.

Nominee Director

Appointed by banks, financial institutions, or investors to represent their interests on the company's board.

Additional Director

Appointed by the board between two AGMs. Holds office until the next AGM where shareholders confirm the appointment.

Documents Required for Director Appointment:

To ensure smooth and rejection-free filing, the following documents and information are required for director appointment:

Category	Document/Information	Purpose
Identity Proof	PAN Card (Mandatory), Aadhaar Card	For DIN application and identity verification with MCA
Address Proof	Recent Utility Bill or Bank Statement (not older than 2 months)	Verifies residential address of the new director
Photograph	Passport-size photograph (recent)	Required for DIN application and company records
Consent Letter	DIR-2 Consent to act as Director	Director's formal consent and declaration of eligibility
Board Resolution	Certified copy of Board Resolution for appointment	Authorization for the appointment by existing board
Digital Signature	DSC of existing director and CS (if applicable)	For digitally signing the DIR-12 form
DIN	Existing DIN or DIN application details	Unique identification number required for all directors
For Foreign Directors	Passport copy, Address proof from home country (notarized/apostilled)	Identity and address verification for non-residents

Eligibility Criteria to Become a Director:

Not everyone can become a director. The Companies Act, 2013 prescribes certain eligibility criteria and disqualifications:

Must be an individual (companies/LLPs cannot be directors)

Must be at least 18 years of age

Must have a valid DIN issued by MCA

Must not be an undischarged insolvent

Must not have been convicted of an offense with imprisonment of 6+ months

Must not be disqualified by a court order

Must not have DIN deactivated for non-filing of KYC

Must not be a director in more than 20 companies (10 for public companies)

Step-by-Step Director Appointment Process:

Our streamlined process ensures smooth and timely director appointment filing. Here's how we handle your director appointment:

Step 1: Initial Assessment

Share the details of the proposed director. We verify their eligibility, check DIN status, and confirm the documentation requirements based on whether they are Indian resident or foreign national.

Step 2: DIN Application (If Required)

If the new director doesn't have a DIN, we apply for it using Form DIR-3. The DIN can also be obtained simultaneously with the appointment filing.

Step 3: Document Collection

We collect identity proof, address proof, photograph, and other required documents from the new director. We prepare the DIR-2 consent form for their signature.

Step 4: Board Resolution Drafting

We draft the board resolution for appointing the new director. The existing directors pass this resolution in a properly convened board meeting.

Step 5: Form DIR-12 Preparation

We prepare Form DIR-12 with accurate details including DIN, appointment date, designation, and terms. The form is reviewed for completeness.

Step 6: DSC Signing & Filing

The form is digitally signed using the DSC of an existing director (and CS if applicable) and filed on the MCA21 portal with applicable government fees.

Step 7: Approval & Confirmation

Upon approval, you receive the filing receipt and the company's master data is updated to reflect the new director. The new director can now sign documents on behalf of the company.

Get your director appointed with proper MCA compliance!

Penalties for Late Director Appointment Filing:

Timely filing of Form DIR-12 is crucial to avoid penalties and legal consequences. Here's what you risk with delayed filings:

Delay Period	Additional Fee	Consequence
Within 30 days	Nil	Normal government fee of ₹300-₹600 (based on authorized capital)
31-60 days	₹100 per day	Additional fee accumulates daily on top of normal fee
61-90 days	₹100 per day	Substantial additional fees; director appointment delayed
Beyond 90 days	₹100 per day (capped at 10x normal fee)	Maximum penalty; possible ROC scrutiny

Important Warning

Directors appointed without proper MCA filing are not recognized as valid directors. They cannot sign statutory documents, and any documents signed by them may be challenged. Timely filing protects both the company and the director from legal complications.

Why Choose IncorpX for Director Appointment?

Expert Team: Qualified CS/CA professionals with extensive MCA filing experience.

Quick Turnaround: Most filings completed within 3-5 working days.

Transparent Pricing: Clear fees with no hidden charges.

Complete Documentation: We draft all resolutions and forms for you.

Dedicated Support: Personal manager to guide you through the process.

Zero Rejection: Quality review ensures accurate, rejection-free filings.

FAQs on Director Appointment Filing

Director appointment is a common corporate event with specific compliance requirements. Here are answers to the most frequently asked questions about director appointment filing:

Form DIR-12 is filed with MCA to inform about changes in directors including appointment, resignation, or change in designation. It must be filed within 30 days of the board resolution appointing the director.

Director Identification Number (DIN) is a unique 8-digit number issued by MCA to individuals who are directors or intend to become directors. Yes, it is mandatory for every director to have a valid DIN before appointment.

Yes, a foreign national can be appointed as a director in an Indian company. However, at least one director must be an Indian resident who has stayed in India for at least 182 days in the previous calendar year.

A person can be a director in a maximum of 20 companies, of which not more than 10 can be public companies. This limit helps ensure directors can devote adequate time to each company.

The minimum age to become a director is 18 years. There is no maximum age limit for directors in a private limited company, though public companies may have specific provisions.

Form DIR-2 is the consent form where the incoming director formally agrees to act as a director and declares that they are not disqualified under any provisions of the Companies Act, 2013.

Generally, a board meeting is required to pass the resolution for director appointment. However, in certain cases, a resolution can be passed through circulation without a physical meeting.

Late filing of DIR-12 attracts additional fee of ₹100 per day of delay. The penalty accumulates until filing is completed. Maximum penalty can be up to 10 times the normal filing fee.

DSC of the new director is not required for filing DIR-12. The form is signed by an existing director and the company secretary (if any). However, the new director will need a DSC for future filings.

The complete director appointment process typically takes 3-5 working days from the date of receiving all documents. DIN application (if required) may add 1-2 additional days.

Yes, an existing employee can be appointed as a director. They can hold a dual role as both employee (drawing salary) and director (entitled to sitting fees/remuneration as per board approval).

The government fee for Form DIR-12 ranges from ₹300 to ₹600 depending on the authorized capital of the company. Companies with higher authorized capital pay higher fees.

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(5 out of 5)

I'd been planning to register my Private Limited Company for months but didn't know where to start - until I found IncorpX. The team guided me step by step, explained everything clearly, and completed the registration smoothly within the promised timeline. Their pricing was transparent with no hidden charges. Highly recommend IncorpX to anyone starting a business!

2025-10-07

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Director Appointment Filing in India

Appoint New Director in Your Company with Expert Support - Starting @ ₹2,999 Only

Expert Consultation in Minutes

HEAR WHAT OUR CUSTOMERS HAVE TO SAY

700+

1000+

250+

WHY CHOOSE US?

Expert Legal Team

Fast Turnaround

Dedicated Support

Complete Documentation

Business Growth Tools

24/7 Customer Service

Need to Appoint a New Director in Your Company?

HERE'S HOW IT WORKS

1. Fill the Form

2. Call to discuss

3. Appoint Director in Your Company

SIMPLE & TRANSPARENT PRICING

Director Appointment Filing Package

IncorpX Prime

Key Benefits

Important Notes

DIRECTOR APPOINTMENT FILING - AN OVERVIEW

What is a Company Director?

Important to Know

Key Features of Director Appointment Filing:

Types of Directors in a Company:

Executive Director

Non-Executive Director

Independent Director

Managing Director

Nominee Director

Additional Director

Documents Required for Director Appointment:

Eligibility Criteria to Become a Director:

Step-by-Step Director Appointment Process:

Step 1: Initial Assessment

Step 2: DIN Application (If Required)

Step 3: Document Collection

Step 4: Board Resolution Drafting

Step 5: Form DIR-12 Preparation

Step 6: DSC Signing & Filing

Step 7: Approval & Confirmation

Penalties for Late Director Appointment Filing:

Important Warning

Why Choose IncorpX for Director Appointment?

FAQs on Director Appointment Filing

Add Director in various States

Add Director in various Cities

IncorpX - Trusted by Indian Entrepreneurs

Expert Consultation in Minutes

Expert Consultation in Minutes