Companies in India are primarily regulated by the (Indian) Companies Act, 2013. While every Indian company is required to have a board of directors consisting of individuals as directors, the requirement of appointment of other officers varies with the type of entity (public or private) and factors such as its paid-up share capital.
Directors
A private limited company must have at least 2 directors and a public limited company must have at least 3 directors. While foreign nationals can be appointed to the board of a company in India, the law mandates the presence of at least 1 resident director, i.e., a director who has stayed in India for at least 182 days in the previous calendar year.
Key managerial personnel (KMP)
Certain officers including the managing director, manager, etc. are recognized as key managerial personnel (KMP). Every listed company and every other public company having a paid-up share capital of INR 100 million (approx. 1.13 million Euros) or more is required to have the following whole-time KMP: (i) managing director, or chief executive officer or manager and in their absence, a whole-time director; (ii) company secretary; and (iii) chief financial officer. Additionally, every private company that has a paid-up share capital of INR 100 million (approx. 1.13 million Euros) or more is required have a whole-time company secretary.
Auditors
Every Indian company is required to appoint an individual or a firm as an auditor. Similarly, listed companies, unlisted public companies and private companies meeting certain criteria relating to paid-up share capital, turnover, etc. are required to appoint an internal auditor.