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Appointment of Director in private limited company in India

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Appointment of Director in private limited company in India

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To appoint a director in a private limited company in India, you need to follow the process outlined in the Companies Act, 2013 and the rules specified by the Ministry of Corporate Affairs (MCA). Here are the steps involved in appointing a director:

 

1.       Obtain a Digital Signature Certificate (DSC): The first step is to obtain a DSC for the person who will be appointed as a director. A DSC is required to sign electronic documents and forms filed with the MCA. The director must apply for a DSC from certified agencies.

 

2.       Obtain a Director Identification Number (DIN): Every director of a company must have a unique DIN issued by the MCA. To obtain a DIN, the director must file an application in Form DIR-3 on the MCA's website and provide the necessary documents and information. The application can be made online.

 

3.       Hold a Board Meeting: Once the director has obtained the DIN, a board meeting needs to be convened. The board members should be given notice of the meeting as per the provisions of the Companies Act. During the meeting, the board will discuss and pass a resolution for the appointment of the director. The resolution should be duly signed by the existing directors and maintained as part of the company's records.

 

4.       File the Appointment with the Registrar of Companies (ROC): Within 30 days of the appointment, the company must file the necessary forms with the ROC. The specific forms required to be filed depend on whether the director being appointed is an additional director, alternate director, or a regular director. The most common form used is Form DIR-12. The form should be filled out accurately and submitted along with the required attachments and payment of fees.

 

5.       Update the Company's Registers: After the appointment is approved and filed with the ROC, the company must update its registers and records. The director's appointment should be recorded in the Register of Directors, Register of Members, and other relevant registers maintained by the company.

 

It's important to note that the specific requirements and procedures may vary based on the circumstances and updates in the law. Therefore, it is advisable to consult a professional, such as a company secretary, for accurate and up-to-date guidance in your specific situation.