Hiring a CFO in India is a legal requirement for some companies and a judgement call for the rest. Listed companies, and other public companies with paid-up share capital of ₹10 crore or more, must have a whole-time Chief Financial Officer under Section 203 of the Companies Act, 2013. A private company usually hires one when fundraising, audits or investor reporting outgrow its finance head.
This guide covers the deadlines that start when a CFO seat falls vacant, how to choose between a full-time, interim and fractional CFO, what candidates should prove, and how to run the search without alarming your finance team. If you are ready to hire a CFO through a private search, Hire22's executive hiring page explains how it works.
Does your company have to appoint a CFO?
Section 203(1) of the Companies Act says companies in a prescribed class "shall have" whole-time key managerial personnel, and the CFO is one of them. Rule 8 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 sets that class: every listed company, and every other public company with paid-up share capital of ₹10 crore or more. Both texts are reproduced on CA2013's annotated Section 203 page.
Three obligations follow. The appointment needs a board resolution that sets out the terms and conditions, including remuneration.
If the CFO leaves, the board must fill the vacancy at a board meeting within six months. Listed companies get less time: Regulation 26A(2) of SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations requires the vacancy to be filled within three months, or six months where a regulator's or government approval is needed for the appointment.
| Company type | Whole-time CFO required? | Time to fill a CFO vacancy |
| Listed company | Yes (Section 203 read with Rule 8) | 3 months under LODR Regulation 26A(2); 6 months if a regulatory or government approval is needed |
| Unlisted public company, paid-up capital ₹10 crore or more | Yes | 6 months under Section 203(4) |
| Unlisted public company below ₹10 crore | No | — |
| Private limited company | No | — |
The clock runs from the date the seat falls vacant, not from the date you start looking. Say your listed company's CFO resigns and serves a three-month notice. If the search begins on their last day, you have 90 days to find, interview and appoint someone who is probably serving a notice period of their own.
So start the search the week the resignation arrives. The LODR also bars filling the post through an interim appointment unless it follows the full procedure for a fresh appointment. While the post is open, at least one full-time key managerial person must run the company's day-to-day affairs.
Full-time, interim or fractional: which CFO do you need?
If your company is in the Rule 8 class, you need a whole-time CFO. A fractional CFO on a monthly retainer doesn't meet Section 203, which asks for whole-time key managerial personnel. At least 9 of the 19 sites Google India showed for "hire a cfo" on 9 November 2026 sell or explain fractional CFO services, and none of the ones we read mentioned that limit.
For a private company, the choice depends on what finance has to deliver in the next 18 months:
- A fractional CFO fits a company that needs monthly MIS, a cash-flow model and a board pack, while its head of accounts already handles GST, TDS and the statutory audit.
- An interim CFO fits a gap with an end date, such as a permanent CFO who has resigned or a transaction that needs a finance lead for a few months. Our guide to interim executive hiring covers how to scope that mandate.
- A full-time CFO fits a company preparing for a priced round with investor due diligence, an IPO, a large debt facility or a second business line with its own P&L.
Our view: if a term sheet is likely within a year, hire the full-time CFO before it arrives. Diligence moves faster when the person answering data-room questions also built the numbers.
What should a CFO candidate prove before the offer?
A CA qualification and Big Four years show training. For a CFO seat, ask separately for evidence in four areas, and give each as much interview time as the technical accounting.
Audit and reporting
Ask them to walk through the last statutory audit they owned: what the auditors raised, and what changed in the books afterwards. For a listed role, ask how they handled a late adjustment close to a results date.
Raising capital
Ask which equity rounds or loans they closed, what the investor or lender asked for in diligence, and what they would do differently. A CFO who reported on money someone else raised is a different hire from one who sat across the table.
Cash and controls
Working capital, collections, approval limits, payment controls. Ask what leakage they found in their last role and how they found it.
The board
Have the final candidates present an anonymised problem from your own numbers to two board members or investors, and pay for their time. It is the closest thing to a work sample for this role. It also shows whether they can disagree with a founder in front of investors, which a CFO has to do every quarter.
Take references from a former CEO and, where you can, an audit committee chair they reported to.
Where do CFO candidates come from?
The CFOs worth hiring are usually running a finance function today and aren't applying for jobs. They move through referrals from CA and investor networks, executive search firms and direct approaches.
Search firms in India commonly charge one to two months of the hire's annual CTC (about 8.33%–16.67%), and retained CFO mandates can cost more, with part paid upfront. Our breakdown of executive search fees in India shows how those fees are structured.
A CFO search needs more discretion than most. Your finance team sees payroll, cash and board papers, so a visible replacement search reaches them fast, and a lender or investor may read a public posting as a sign of trouble. Keep the brief to the CEO, the board and whoever approves the offer. For a starting brief, Hire22's CFO hiring page lists the role's usual scope.
What should the CFO offer and appointment include?
Section 203(2) requires the board resolution to contain the terms and conditions of the appointment, including remuneration, so agree them with the candidate before the board meeting. Put these in writing: fixed and variable pay, ESOPs and their vesting schedule, notice period on both sides, any notice period buyout you will fund, and directors and officers (D&O) liability insurance.
Then plan the handover. The outgoing CFO, the statutory auditor and the company secretary should each meet the new CFO in the first fortnight, before the next quarterly close.
How Hire22 runs a CFO search
Hire22 sends your CFO role to matched finance leaders as a private JobCoNCT. Hunter AI searches the Hire22 candidate database and the web, including passive candidates. CoNCT AI reaches them by SMS, WhatsApp, email and AI voice calls and confirms interest.
JoinX AI ranks the interested candidates on 200+ parameters, including CTC fit, notice period and intent to join, and employers typically get an interview-ready shortlist within 22 hours of posting.
On a Senior Investment Professional search, the funnel ran 288 found → 50+ screened → 5 interview-ready → 1 hired by the client (see case studies). The Starter Package is ₹60,000 + GST for 15 job postings over 6 months, with no success fee (pricing).
Hire22 doesn't interview or hire: your board runs the assessment. It is not designed for fractional or part-time CFO engagements, where a CFO services firm is the better fit.
Replacing a CFO, or adding one before a raise? Send your CFO role as a private JobCoNCT and start the search before the vacancy clock runs.
Hiring more than one leader this year? CXO hiring in India covers the wider confidential search, and how to hire a CTO in India is the technology-side companion to this guide.
Can a private limited company run without a CFO?
Yes. Section 203's whole-time CFO rule doesn't cover private companies, so a finance controller or a fractional CFO is enough legally. Rule 8A does require a whole-time company secretary once a private company's paid-up capital reaches ₹10 crore.
Does a CFO in India have to be a chartered accountant?
Not under the Companies Act. Section 2(19) defines a CFO simply as the person appointed to that position, with no qualification attached. In practice most boards and investors prefer a CA, so say in the brief whether you will consider other qualifications.
What is the penalty for not appointing a CFO?
Section 203(5) sets a penalty on the company and a separate one on each director and key managerial person in default, plus a daily amount while the default continues. Confirm the current figures with your company secretary, because the section has been amended.
Should the CFO report to the CEO or the board?
Usually to the CEO or managing director, with direct access to the audit committee where one exists. Write both reporting lines into the brief, because senior finance candidates ask about them in the first conversation.
How long does a CFO search take?
The chosen candidate's notice period usually takes longer than the search. On Hire22, employers typically get an interview-ready shortlist within 22 hours of posting, but interviews, the board presentation, references, the board meeting and the notice period still follow, so plan in months.
How do you keep a CFO replacement search confidential?
Keep the role off public job boards and limit the brief to the CEO and the board. On Hire22, employers can choose to hide their company name, so candidates see an alias, and each candidate's name, phone, email and resume stay hidden until they accept the JobCoNCT.
