Guidelines for Application of DIN/ Directorship for Person from Countries Sharing Land Border with India

Guidelines for Application of DIN/ Directorship for Person from Countries Sharing Land Border with India

In this editorial, author shall discuss the latest update made by Ministry of Corporate Affairs (MCA) in respect to

• Application for DIN
• Application for Appointment of Director

For the person who belong to country sharing land border with India i.e. China, Pakistan, Bhutan, Myanmar, Nepal and Bangladesh

These amendments have been made by :

i. Amendment has been made in Rule 8 and 10 Companies (Appointment and Qualification of Directors) Rules, 2014.

ii. Amendment has been made in DIR-2 and DIR-3.

iii. Form 9 in Companies (Incorporation) Second Amendment Rules, 2022 has been substituted with new formats

A. Amendment I:

I. Application for DIN:

W.e.f. June 01, 2022 if any person want to get Director identification No. (DIN) in India and belong to any country like China, Pakistan, Bhutan, Myanmar, Nepal and Bangladesh then before to obtain DIN such person required to take PRIOR APPROVAL from Ministry of Home Affairs and such clearance/ approval required to attach in DIR-3.

1. How to Take approval from Ministry of Home Affairs:

A person have to submit application through below given link with MHA for Security Clearance and obtaining DIN. https://esahajmcaservices.nic.in/

2. Whether a person can take approval from MHA after obtaining DIN but before appointment as Director?

Security clearance approval from MHA is required to obtain before application for DIN with ROC/ RD. Therefor, without approval from MHA DIN cant be apply.

B. Amendment II:

II. Appointment of Director:

W.e.f. June 01, 2022 if any person wants to appoint as Director in any Company Incorporated in India belong to China, Pakistan, Bhutan, Myanmar, Afghanistan, Nepal and Bangladesh these countries then before appointment such person required to take PRIOR APPROVAL from Ministry of Home Affairs and such clearance/ approval required to attach with DIR-2.

3. How to Take approval from Ministry of Home Affairs:

A person have to submit application through below given link with MHA for Security Clearance for appointment as Director. https://esahajmcaservices.nic.in/

4. If Mr. Divesh is belong to country sharing land boarder with India. He is already director in two Indian Companies. Now, he want to get appointment in one more Company in India. Whether Such person required to take security clearance approval from MHA?

Even a person is already director in Indian Company. But if he is accepting any appointment in any other Indian company after this amendment. Then before appointment he needs to take approval from the MHA.

5. If A person belong to country sharing land border of India. He is already director in Indian Company. Whether after this amendment he required approval of MHA to continue as Director.

As per the amendment Rules, one can opine that a person who is already serving as director in Indian Company can continue his tenure as director as per the agreement without any approval from the MHA.

Note:

*New Disclosures has been added in DIR-2 and DIR-3 w.e.f. 01^st June 2022.

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Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com).