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USA to India · Directors

The India-resident director requirement for US groups

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375 · Updated

In brief

Every Indian company needs at least one director present in India for 182 days or more in the financial year, out of a minimum of two. US groups usually post a manager to India, appoint a senior Indian hire, or use a professional resident director with a limited mandate.

What is specific to US companies

Few US executives spend 182 days a year in India, so US parents usually appoint an Indian employee or a professional resident director. A US citizen who does relocate and meets the test becomes Indian resident but stays taxable in the US on worldwide income, so the move needs planning in both countries.

Our services

How SU and Company helps

We run the incorporation end to end from New Delhi and tell the parent exactly what to sign and legalise.

  • Country-specific document checklist and review before legalisation
  • Name application, digital signatures and DINs
  • SPICe+ filing with PAN, TAN and registrations
  • Bank account coordination and capital receipt
  • Share allotment, demat shares and FC-GPR
  • INC-20A and first-year compliance calendar

Questions

Is the resident director personally liable?

Directors can be liable for specified defaults under company, tax and other laws, so mandates, indemnities and insurance should be in place.

General information as at 5 November 2026, not advice for a particular case. Indian and US rules change often; confirm the current position before acting. US law points should be confirmed with a US adviser.

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