Get Online Addition of Director Service to Company
Director is the person who is part of Board, who collectively runs the Company. Almost all the important decisions are taken by the Board of Directors. A Director can be Executive or Non-Executive or Independent etc. The person who wants Addition of Director to a company must obtain approval of the shareholders of the company. According to Companies Act, 1956, the Articles of Association of a company are the source of authority from where the Board of Directors draws the right to add new directors to the Board or remove existing ones.
Benefits of Addition Director
Introducing new leader and talent: – By adding a new Director in the company one opens the door for new knowledge, fresh eyes and the skills they bring with them.
Mandatory number of Directors: – The Companies Act has stated the minimum number of Directors in various types of companies. Like for private company the number of Directors shall not reduce below 2 and for public company the limit is 3. If that happens, then the company has to appoint a new director(s) within 6 months.
Making sure that the work is unaffected: – At certain point of time the existing Directors are not able to serve the company due to retirement or other personal reasons. It may be resignation of a Director or his/her death but the company needs to make sure that its work doesn’t suffer, because of that.
Sharing operational responsibility not ownership: – The New Director does not need subscribing to the share capital, rather he/she is responsible for the day to day operations in the company. The shareholders can keep their voting rights and strategic control to themselves, the ownership does not saturate with the entry of new director in the company
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How we help with Appointment of directors
Advisory: – The procedure for adding a Director of a company or Organization would depend on the existing Board of Directors. Our Experts team will advise and help you on the procedure that require.
Board Resolutions: – Once you obtain an understanding of the procedures involved in appointing a Director to your Company, our Experts will draft the necessary Resolutions for the procedure.
Filing the Documents: – After Board Resolutions & meeting Completion Passed, our Professional Experts team will file the necessary documents with the Govt. Ministry of Corporate Affairs to register & addition of new Director.
Advantages of Partnership Firms
1. Ease of Formation: One key advantage of Partnership Firms lies in their simplicity of establishment. Unlike more complex business structures, such as corporations, partnerships can be formed with relative ease, often requiring only a clear agreement among the partners.
2. Flexibility: Partnership structures offer a high degree of flexibility, making them adaptable to various business needs and circumstances. Partnerships can take different forms, such as general partnerships or limited partnerships, allowing individuals to tailor the structure to suit their specific goals and preferences.
3. Shared Responsibilities and Resources: By combining the skills, capital, and resources of multiple individuals, partnership firms benefit from a shared burden of responsibilities.
4. Tax Advantages: Partnership Firms often enjoy favorable tax treatment. Unlike corporations, partnerships are not subject to income tax themselves. Instead, profits and losses flow through to the individual partners, who report this income on their personal tax returns.
5. Direct Profits: In a partnership, profits generated by the business are distributed directly among the partners according to the terms outlined in the partnership agreement.
Types of Director in a Company
Managing Director: – A Managing Director (MD) is the top senior Level person in a company that are responsible & overall Management and performance of the Company/organization. The role of a Managing Director (MD) depends on the type and size of the organization.
Executive Director: – An Executive Director (ED) is a senior-level Person who is responsible for overall operation management of company & organization or a corporate entity. The Executive Director is member of Board of Directors and responsible for organization strategies & implementation and planning the goal of organization.
Additional Director: – An Additional Director is a Senior level person that appointed by the Board of Directors of a company or organization to serve as a Director for a limited period until the next Annual General Meeting (AGM). An Additional Director is made to fill a casual vacancy or to bring in expertise or skill that is required by the Board of Directors.
Ordinary Director: – An ordinary director is professional role & Senior level person of the company and organization that serve member of the company board director and attend all meeting of a company. Ordinary director is responsible for providing guide and decision making on behalf of organization financial, risk management, Policy development etc. This position neither full time or Managing Director.
Alternate Director: – An alternate director, also known as a substitute director or deputy director of the company & organization that appointed by the board of director this work on behalf of director when the director is unavailable or absence it’s called temporary position.
Procedure for Adding a Director
3 WORKING DAYS: – The newly-appointed & selected director Should apply for a Director Identification Number by filing E-Form DIN-1 with the Ministry of Corporate Affairs, Government of India.
4 WORKING DAYS: – A resolution needs to be passed by the board, approving the appointment of a director. Once this is done, we will file Form DIR-12 with the Registrar of Companies.
Why Choose KSP SOLUTIONS & ASSESSMENT PRIVATE LIMITED for Addition of Director Service in India
KSP SOLUTIONS & ASSESSMENT PRIVATE LIMITED is a reputable and reliable legal Business service provider in India that can assist in Appointment of Director online in India. There are several reasons why you may choose KSP SOLUTIONS & ASSESSMENT PRIVATE LIMITED for this service:
1. Expertise: KSP SOLUTIONS & ASSESSMENT PRIVATE LIMITED has a team of experienced Chartered Accountant (CA) & legal experts who are well-versed in company law and can provide accurate and reliable advice on the appointment of directors.
2. Convenience: KSP SOLUTIONS & ASSESSMENT PRIVATE LIMITED offers online services, which makes the appointment process convenient and accessible from anywhere in India. You can complete the entire process from the comfort.
3. Cost-effective: KSP SOLUTIONS & ASSESSMENT PRIVATE LIMITED offers Cost effective services at competitive prices, making it an affordable option for companies of all sizes.
4. Compliance: KSP SOLUTIONS & ASSESSMENT PRIVATE LIMITED ensures that all legal formalities and compliance requirements are met, so you can be confident that your appointment of a director is fully compliant with all applicable laws and regulations.
What Are The Requirements for Addition Of Director ?
Identification proof (PAN card)
PAN card: mandatory for an Indian applicant
Digital signature certificate of the proposed director
Photograph Passport size
Passport: mandatory for a foreign applicant
Proof of Residence(Electricity Bill, Rental Agreement)
Let's Clear All the Doubts !
A Director can be Executive or Non-Executive or Independent etc. He/She is the person who is part of Board, who collectively runs the Company. Almost all the important decisions are taken by the Board of Directors.
The person nominated to become a Director must obtain a DSC and a DIN. He/ She must fulfill the clauses mentioned in Articles of Association and register his/her consent in written form to the company.
Private Limited Company requires 2 Directors for its formation while Public Limited Company needs 3 Directors.
DIN is the acronym for Director Identification Number issued to any person who has applied to the Ministry of Corporate Affairs and is a pre-requisite to be appointed as a Director of any private or public limited company.