Security Clearance from MHA for foreign national of a country sharing land border with India

Overview 

Latest regulations mandates security clearance from the Ministry of Home Affairs (MHA) for individuals from land-bordering countries, such as China, seeking directorships in Indian companies. This article unpacks the essential requirements, implications, and step-by-step application process at E-SAHAJ SEWA for this mandatory clearance, empowering businesses and aspiring directors to ensure smooth compliance and national security. Stay ahead of the curve and ensure success in India's dynamic business environment with this comprehensive guide.

India’s corporate landscape is evolving, and so are its regulations. In June 2022, a significant amendment to the Companies (Appointment and Qualification of Directors) Rules [Notification] made security clearance from the Ministry of Home Affairs (MHA) mandatory for individuals from countries sharing land borders with India seeking directorships in Indian companies. While aiming to safeguard national security interests, this new requirement raises questions and practical challenges for businesses and aspiring directors.

Key Points

Individuals from China, Pakistan, Bhutan, Myanmar, Afghanistan, Nepal, and Bangladesh must obtain clearance from the Ministry of Home Affairs (MHA) before applying for a Director Identification Number (DIN) or appointment as directors. This requirement applies to new appointments during the Company Incorporation Process and existing directors from these countries seeking reappointment or DIN renewal.

The security clearance document must be attached to the application form for consent to directorship or DIN. This amendment prioritizes national security by ensuring that foreign directors from bordering countries do not pose potential threats.

There are some key points to remember when it comes to the new director appointment procedures for a person who is a citizen of countries that shares a land border with India. First and foremost, companies must integrate the new process into their existing procedures and ensure that new appointments as directors in the company or the LLP follow the prescribed procedure to obtain the security clearance on E-Sahaj Sewa Portal launched by the MCA for this very purpose.

Detailed Guide to the Application Process

Registration and Login : Applicants register on the Ministry of Corporate Affairs (MCA) portal with a valid email ID and phone number.

Access E-SAHAJ SEWA :Access E-SAHAJ SEWA: Access the E-SAHAJ SEWA section within the MCA portal, where the security clearance application is available. The direct link to the portal is https://esahajmcaservices.nic.in

Complete the Application Form : Fill out the form accurately, highlighting citizenship and border-sharing country details. Upload necessary documents like passports and visas.

Application Submission : Review and apply through the portal. Keep a printed copy for reference and inform the Technical Support Team about any discrepancies.


What countries are basically involved in this notification?

China

Myanmar

Bangladesh

Pakistan

Afghanistan

Bhutan

Nepal


What about the Existing Directors on the Board of Directors in Indian Companies?

Existing Directors of the Indian Company or the designated partners of the LLP are not required to seek any Security Clearance from the MHA if they were appointed before the issuance of this notification.

What is security clearance for appointment of directors?

Security clearance is a pre-requisite for granting permission to individuals who are citizens of countries sharing land borders with India and intending to apply for issuance of Director Identification Number (DIN)/ appointment of Director in new/ existing Company.

How to obtain security clearance from Ministry of Home Affairs?

Follow the process above mentioned, for detailed assistance can connect with us.

Who is required to obtain security clearance from MCA?

If any person who is a national of a country that shares a land border with India (i.e. China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan), seeking an appointment in any Indian Company, shall on or before his/her appointment shall obtain and attach necessary security clearance from the Ministry of Home Affairs.

What is MHA security clearance?

Security Clearance Portal of Ministry of Home Affairs is a Centralized web application developed to digitize and streamline the applications of security clearances related to Foreign nationals handled by the Foreigners Division, MHA

Related: Security clearance from the Ministry of Home Affairs for DIN, 

Security clearance India, 

Security clearance from Ministry of Home Affairs for Directors, 

Security clearance for foreign nationals, 


This blog is authored by Company Secretary Ronak Gupta. He is author of many blogs and runs many websites and youtube channels. His work is dedicated to corporate laws, legal, secretarial, professional services and also in strategy formulations for corporates. Mail him at: csronakgupta23@gmail.com or call at :9910226715

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