Ministry of corporate affairs has vide circular no. 36/2020 dt. 20.10.2020 waived off the requirement under section 149 of the Companies act, 2013 for FY 2020-21 wherein atleast one director is required to stay in India for atleast 182 days in a year.
The above requirement is mentioned under section 149(3) of the Companies Act, 2013 which is as under:
“Every company shall have at least one director who stays in India for a total period of not less than one hundred and eighty-two days during the financial year:
Provided that in case of a newly incorporated company the requirement under this sub-section shall apply proportionately at the end of the financial year in which it is incorporated.”
Further the above relaxation is in continuation of relaxation provided by circular 11/2020 of the Companies Act, 2013 wherein same relaxation was provided for FY 2019-20.
Thus, now even if one director of a company doesn’t stay in India for 182 days or more same won’t be considered as a non compliance.
Full circular is as under:
To download the circular CLICK HERE.
