Remuneration of a foreign director

[naresh kumar]

Dear Members,

Can a foreign director get remuneration from a private limited company as a director even he is not holding work VISA in India ?

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--Thanks & Regards--

NARESH KUMAR

ACS, LL.B., PGDIPR

MOBILE- 9910683177

 

 

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[Madhwesh K]

Dear Naresh,

 

A director who is foreign national can be paid remuneration by way of commission irrespective of employment visa. For payment of salary (i.e., fixed remuneration), such person should normally hold valid employment visa.

 

In cases where the place of work of such director (as per company's policy) is outside India, then without such visa also, fixed remuneration can be paid. For better corporate governance, such terms of employment can be approved by directors & shareholders and a valid employment agreement covering detailed terms shall be entered into.

Sitting fee, since paid on the basis of visit for meetings, shall not be a problem.

 

Since the company is a private company (presumed "stand-alone"), restriction on appointment / payment of remuneration would not apply under company law. However, implications of TDS on the company and tax filings on the part of such directors should be kept in mind.

Member's views solicited

 

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Thanks and Regards,

Madhwesh K

Practicing Company Secretary

9980672126

#180, 31st Cross,

Jayanagar 4th T Block,

Bangalore - 11