Generate Free Form DIR2 Consent !
Create and download free DIR2 Form - Consent to act as a Director for new company registration in India.
Innovation and fresh ideas are constantly welcome in the thriving corporate environment of India. More people desire to create their own firms, and there is generally a greater sense of entrepreneurship. If you're one of them, then the first step towards realizing your business dream in India involves company registration. This process comes with its set of requirements and intricacies, one of which is securing the DIR (Director Identification Number) consent to act as a director while doing company registration in India. The importance of DIR approval for new business registration in India and how it facilitates your entrepreneurial journey will be covered in detail in this article.
Understanding the DIR Consent
Let's clarify what DIR consent entails before getting into the details. A Director Identification Number (DIR) is a special identification number given to people who want to serve as directors of corporations in India by the Ministry of Corporate Affairs. To legally occupy the director's chair, an individual must obtain a DIR. This is where DIR consent comes into play. When submitting SPICe INC-32 on the MCA Portal for company registration in India, it is a requirement for all prospective companies to include Form DIR-2. Individuals aspiring to serve as directors in the forthcoming company must furnish the DIR-2 form.
The Significance of DIR Consent
When it comes to company registration, DIR consent is an essential document. It is essentially an individual's declaration of intent to act as a director in the proposed company. Without obtaining DIR consent, one cannot occupy the director's position, and the company registration process cannot proceed. A person validates their understanding of the responsibilities, liabilities, and duties that come with becoming a director by giving their approval. Additionally, it keeps the company structure transparent and aids in the prevention of fraudulent actions.
The Process of Obtaining DIR Consent
Company registration in India is a complex process, and the presence of directors is indispensable. To obtain DIR consent, individuals must file an application with the Ministry of Corporate Affairs. Name, residence, date of birth and a statement of director qualification are among the personal information provided and are usually remembered for applications. Once the application is processed and the necessary background checks are completed, the Ministry issues the DIR consent.
The Role of DIR Consent in Company Registration
When it comes to registering a new company in India, the presence of directors is paramount. If they didn't concur, the company's operations would cease. The proposed chiefs' endorsement by the DIR exhibits that they are able to complete the obligations of their posts. it cultivates trust among partners and expected financial backers by showing the affiliation's obligation to the administration.
In the labyrinthine process of company registration in India, obtaining DIR consent is a pivotal step that cannot be overlooked. So, if you're planning to start a new company in India, make sure to prioritize obtaining DIR consent for your chosen directors.
[Pursuant to Section 152(5) and rule 8 of Companies (Appointment and Qualification of Director) Rules, 2014]
To Company name and address
Subject: Consent to act as a Director
I, xxxxx, hereby give my consent to act as Director of xxxxx, pursuant to subsection (5) of section 152 of the Companies Act, 2013 and certify that I am not disqualified to become a Director under the Companies Act, 2013.
I declare that I have not been convicted of any offence in connection with promotion, formation or management of any company or LLP and have not been found guilty of any fraud or misfeasance or of any breach of duty to any company under this Act or any previous company law in the last five years. I further declare that if appointed my total Directorship in all the companies shall not exceed the prescribed number of companies in which a person can be appointed as a Director.
The Director's DIN (Director Identification Number) or PAN (Permanent Account Number) is a unique identifier required for official transactions and tax purposes..
The Full Name of the director includes their first name, middle name (if any), and last name, as mentioned in official documents.
This refers to the director's father's name, which is typically required for identification and record-keeping purposes.
The Address should include the director's current residential or office address, which is essential for communication and official correspondence.
Nationality indicates the director's citizenship or country of origin, which may have legal implications for their role in the company.
This information details how many other companies the director is currently associated with, which can indicate their level of commitment and capacity for additional responsibilities.
The director's Email address & Mobile number is crucial for electronic communication and notifications related to the company's affairs.
If the director is a professional (e.g., a Chartered Accountant, Lawyer, or Company Secretary), this section should include details of their professional memberships, such as registration numbers and governing bodies.
Yes, a Company is required by law to have at least one Resident Director. According to Section 149(3) of the Companies Act 2013, every company must have a director who has resided in India for a minimum of 182 days in the Financial Year.
Yes, documents must be notarized by a Notary in the respective country, and the Notary's certificate should then be authenticated by a Diplomatic or Consular Officer authorized under Section 3 of the Diplomatic and Consular Officers Act, 1948. Afterward, the documents should be attested by a Public Notary and authenticated by the Indian Embassy in the country of residence.