Procedure For Appointment Of Director Sharing Land Borders With India

PROCEDURE FOR APPOINTMENT OF DIRECTOR SHARING LAND BORDERS WITH INDIA

Ministry of Corporate affairs has introduced Security clearance procedure compulsory for any national to become Director whose country is sharing land border with India. First the person needs to get the security clearance from the Ministry of Home Affairs then only he is eligible to become Director in the Company.

Notification from Ministry of Corporate affairs:

*Ministry of Corporate Affairs (MCA) vide Gazette Id no. CG-DL-E-01062022-236214 & F.No.1/22/2013-CL-V dated 01^st June, 2022 has issued “the Companies (Appointment and Qualification of Directors) Amendment Rules, 2022” further to amend the Companies (Appointment and Qualification of Directors) Rules, 2014, in exercise of the powers conferred under second proviso to Section 149(1), 149 (4), 149 (6) (f), Section 150 (3), Section 150 (4),   Section 151, Section 152 (5), Section 153, Section 154, Section 157, Section 160, Section 168 (1) and section 170 read with section 469 of the Companies Act, 2013.

 Applicability:

From the date of their publication in the Official Gazette i.e. 01.06.2022.

 Key Highlights:

1. From the date of applicability of this circular, any national from a country that shares a land border with our Country, India, must seek security clearance from the Ministry of Home Affairs, Government of India if they want to get appointed as Director in any Indian Company.
2. This requirement is in line with the Press Note 3 (2020 series) issues by Ministry of Commerce & Industry, Department for Promotion of Industry and Internal Trade, FDI Policy Section regarding “Review of Foreign Direct Investment (FDI) policy for curbing opportunistic takeovers/acquisitions of Indian companies due to the current COVID-19 pandemic”. 
3. Countries which share land borders with India are:

• China
• Bangladesh
• Pakistan
• Bhutan
• Nepal
• Myanmar

4. No application number shall be generated in case of the person applying for Director Identification Number is a national of a country which shares land border with India, unless necessary security clearance from the Ministry of Home Affairs, Government of India has been attached along with application for Director Identification Number.”
5. The directors are required to sign a declaration and verification as stated in the circular issues by the MCA ensuring that stated approvals are duly in place.

We need to register over https://esahajmcaservices.nic.in/esecmca/ for the Directors to be appointed who are sharing land borders with India.

First the Directors to be appointed needs to take security clearance from Ministry of Home Affairs, Government of India then only they are eligible to become Director of the Indian Company.

The Director to be appointed needs to register on Esahaj MCA services with their personal email id and mobile no. and they will receive OTP on their registered Email ID and accordingly 1^st Step to register over the Esahaj portal will get complete.

Information required to be filed for submission of application over Esahaj Portal:

1. FIRST NAME
2. MIDDLE NAME
3. LAST NAME
4. DATE OF BIRTH
5. GENDER
6. NATIONALITY
7. PASSPORT NUMBER
8. PASSPORT
9. OCCUPATION
10. EDUCATION QUALIFICATION
11. PRESENT AND PERMANENT ADDRESS
12. PROOF OF PRESENT AND PERMANENT ADDRESS
13. PASSPORT SIZE PHOTOGRAPH

PROCEDURE FOR APPOINTMENT OF FOREIGN DIRECTORS*

Step 1.⁠ ⁠Obtaining DSC

Following details are required for obtaining DSC/DIN:

1. Proof of Identity- Copy of Passport and Driving Licence
2. Proof of Address- Utility bill
3. Education Qualification
4. Father’s Name
5. Photo passport size in colour
6. Mobile Number
7. Email id

*Apostillization and notarisation for passport, driving license and utility bill shall be done based on their address and it should be done in the same country as per the address mentioned in driving license, Passport and utility bill

In order to obtain DSC, we will require to fix the time with the Directors to be appointed for approx. 15-30 minutes. The OTPs will be generated on your email id and must be shared twice.

After the verification and submission of application through OTP, the applicant will receive the link for the video verification of the applicant.

(The video verification is to be done through Windows Laptop/Android)

             Click on Record button 

• Read the script clearly at the time of the video along with code mentioned on the   screen
• Show the Original passport copy along with utility bill in the video
• Click on Submit button
• Further the DSC shall be approved in case the DSC is not approved due to video,

             the same may be required to be done again. 

• Once approved by the Certifying Authority, the DSC will be downloaded from our end.

Step 2.⁠ ⁠Applying DIN

• On completion of DSC, we will proceed with filing of DIN by Filing Form-DIR-3 

Step 3.⁠ ⁠Appointment as Director

• Appointment of Director by filing Form-DIR-12 and passing of resolution for the same

Please feel free to connect in case of any query.