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MCA Notification Security Clearance DIN of Citizens of Neighboring Countries | CG-DL-E-01062022-236214 Dated 1st June 2022.

Editorial Team
Updated
January 1, 2024

India’s corporate landscape is a vibrant and diverse mix of ambition, innovation, and growing international collaboration. However, with the increasing global interconnectedness, security concerns have become a crucial aspect of business regulations. The Ministry of Corporate Affairs (MCA) Notification CG-DL-E-01062022-236214 highlights the need to balance these competing forces.

The MCA Notification allows foreign directors to join Indian companies, but there is one condition. Directors from nations sharing land borders with India, such as China, Pakistan, Nepal, and Bangladesh, need to obtain security clearance from the Ministry of Home Affairs (MHA) before they can take up directorships or obtain a Director Identification Number (DIN). This regulation, which came into effect on June 1, 2022, aims to strike a delicate balance between promoting international business partnerships while ensuring national security interests are safeguarded.

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