Why the Change of Directors Required?
Introduce New Talent/s on Board
With the growth of business, associations and strategies are developed, which requires input from each departments for effective planning. Also in the case of addition of a new department of new product range, an expertise requires to lead the team. In such cases, a company can hire someone in a managerial position being director of the company, which benefits the company with output on focused efforts.
Show MoreAssigning Operational Responsibility without Dilution of Ownership
Directors plays key roles in a company, they are the managerial personal that control and manages operations of the company. By appointing an additional Director, the shareholders can assign the operational responsibility to the same, keeping strategic control in hand. A director does not requires to subscribe share capital, hence the ownership and voting rights of shareholders does not dilute with the new director on board.
Show MoreInability of Existing Director/s
If an existing director may not be able to contribute on his parts of assigned roles due to retirement or any other reason, he/she may exit from his role at company. Smooth operation of the company has to be ensured in any circumstances like retirement/ resignation or even in the event of unexpected death of a director. In certain cases also the company may have to appoint new director/s and the same should be notified to MCA.
Show MoreNumber of Directors falls under Statutory Limit
Minimum number of directors is 1, 2 and 3 respectively for One Person Company, Private Limited Company and Public Company as per Companies Act. Companies should maintain at least the minimum number of directors at any time during the company’s existence, if the number of directors falls below the prescribed minimum level by any circumstances; the company has to appoint new director/s to meet the criteria within 6 months of the event.
Show MoreAdd or Remove Director Online
Documents Required for Add or Remove Director
- PAN Card Self attested PAN card of the Director to be removed/appointed
- Photograph Passport size photograph of the Director to be removed/appointed
- Proof of Address Aadhaar Card/Passport/Voter ID/Driving License of the Director to be appointed/removed
- Digital Signature Certificate DSC of the continuing Director and the Director to be removed
- Certificate of Incorporation Certificate of Incorporation of the company
- MoA and AoA MoA and AoA of the company
Register Online
Add or Remove Director in 3 Easy Steps
- Fill up the registration form
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Consultation on Add/Remove Director
Provide details & upload documents required for Add/Remove Director
Drafting of necessary documents
- Preparation and filing of application online
Sharing of updated MCA master data with modified details
Director added/removed
All it takes 6 – 8 working days*
*Subjected to Government Processing Time
Process of Add/Remove Director
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Day 1- 2
Consultation on Add/Remove Director
Collection of Information
Collection of Required Documents (Scanned Copies)
Review of Documents and Information provided
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Day 3 – 4
Drafting of necessary documents
Sending documents to get signed from directors
Application for DSC (for newly joining Director)
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Day 5 – 8
Preparation and Filing of Online Application
Sharing of Master Data from MCA with updated information
*Subjected to government processing time.
Enquiry
FAQ
What should I know before changing directors in Private Limited Company?
While carrying change in the board of directors, the company must obtain consent from its Board and members, as required by passing a resolution. Further, the care must be taken that the number of directors does not fall below the statutory limit after removal or resignation.
Can a director himself resign from a company?
Yes, a director can voluntarily resign. The notice of resignation must be served to company stating reason of resignation. Also, the resigning director needs to file a form for intimation to MCA about his resignation from company.
What should a company do if the number of directors falls below the prescribed level?
If the total number of directors is less than the number prescribed, the company shall appoint a director(s) in the company to fulfill the requirement within 6 months from removal/resignation/death of the concerned director.
What are the pre-requisites to add a director in company?
An individual to be added as a director must be major and qualified under the Companies Act, 2013. For the appointment, the consent of the members is also required.
Do I need to apply for another DIN, if I have already procured one?
No, you are not required to obtain another DIN. It is permanently allotted and can be used for a person’s subsequent appointment in any company/LLP.
Whether director needs to subscribe shares for his appointment?
There is no requirement to subscribe the shares by the director. However, if the Articles (AoA) of the company prescribe for any such subscription, it must be fulfilled as a condition for his appointment.
Can a Body Corporate be appointed as director in the company?
Only an individual can act as a director in the company. Hence, if any LLP or Company is willing to be added as a director in the company, only its representative may act as the director.