Nominee Director
Local Representation. Global Confidence.
For foreign companies expanding into India, meeting local compliance requirements is essential. One key mandate under the Companies Act, 2013 (Section 149(3)) is to appoint at least one resident director who has stayed in India for a minimum of 182 days during the financial year.
At Maxiple Service, we provide Nominee Director Services to help international clients seamlessly meet this statutory requirement—while offering strategic support for early-stage operations such as banking, licensing, and regulatory interaction.
Scope of our Nominee Director advisory services
Incorporate with nominee directors and transfer directorship
Act as a resident director in compliance with Indian law
Attend board meetings and sign resolutions and statutory documents
Assist in opening Indian bank accounts for the company
Support in obtaining licenses, permits, and registrations
Liaise with regulatory authorities on behalf of the company
Ensure a local governance presence to support business continuity and credibility
FrequentlyAsked Questions(FAQs)
Who is a nominee director under the Companies Act, 2013?
A nominee director is appointed by a shareholder, financial institution, or government entity to represent their interests on a company’s board. As per Section 149(7), they also hold fiduciary duties to act in the best interest of the company.
Is a nominee director considered an independent director?
- No. A nominee director is not an independent director, as per Section 149(6).
What is the purpose of a nominee director?
To represent the interests of the appointing party and safeguard them during board-level decision-making.
What are the conditions for appointing a nominee director?
- Must be appointed under applicable law or agreement
- Can be nominated by a financial institution, investor, or regulatory body
- Should represent the interests of the nominating entity
What activities fall under nominee directorship services?
- Signing of company documents and ROC forms
- Participating in board meetings
- Supporting local compliance, regulatory filings, and document execution
- Bank account opening and liaising with statutory authorities
Understanding D&O (Directors & Officers) Insurance
D&O insurance protects directors and officers from personal liability for actions taken in their official roles—including lawsuits, regulatory actions, or claims of mismanagement.
Who should obtain a D&O policy?
Any private or public company with a board of directors or executive committee.
Why is D&O insurance necessary?
Because directors and officers can be personally held liable for:
- Breach of fiduciary duty
- Regulatory violations
- Employment-related claims
- Investor/shareholder lawsuits
Can a board member be sued?
Yes—by shareholders, regulators, employees, competitors, or creditors.
Can a director or officer be personally liable?
Yes, under the Companies Act, directors may face personal liability for certain corporate decisions or failures to comply with statutory obligations.
Why choose Maxiple Service ?
- Confidential, compliant nominee director on boarding
- Seamless coordination for bank, legal, and statutory tasks
- Strong knowledge of Company Law, FEMA/RBI regulations, and tax advisory
- Ideal for foreign companies, startups, and global investors entering India