New procedure for DIN application & reasons for rejection

CS Divesh Goyal

PROCEDURE OF OBTAINING DIN

Section and Rule Number(s)

eForm DIR-3 is required to be filed pursuant to Section 153 of the Companies Act, 2014 & Rule 9(1) of the Companies (Appointment and Qualification Of Directors) Rules, 2014 which are reproduced for your reference.

Section 153:

Every individual intending to be appointed as director of a company shall make an application for allotment of Director Identification Number to the Central Government in such form and manner and along with such fees as may be prescribed.

Rule 9(1):

Every individual, who is to be appointed as director of a company shall make an application electronically in Form No. DIR-3, to the Central Government for the allotment of a Director Identification Number (DIN) along with such fees as provided in the Companies (Registration Offices and Fees) Rules, 2014.

Common Reasons for Rejection of DIN Application – 

Before you fill-in application for DIN -Please remember following common causes of REJECTIONS

• Applicant’s name and father’s name mentioned in abbreviated form. – The Name should be expanded even if the ID proof contains the name in abbreviated form.
• Mismatch in the Name and Father’s Name in DIN form with the ID (Identity) proof enclosed. – Any mismatch in Name, including spelling mistake, may lead to rejection of application. Minor spelling deviations in the father’s name may be accepted, if such deviations do not materially impact the name.
• Prefixes like Mr. / Ms. / Kumari / Shri etc. used in the applicant’s name.
• Residence proofs like: Bank Statements, Electricity Bill, Telephone Bill, Utility bills etc. submitted are older than 2 months of submitting the application for verification OR such documents are in the name of some other person, for example father or spouse.
• The supporting documents are not duly attested i.e. Name, Designation, Membership/ Practicing certificate number etc. are not clearly indicated. – If the seal/ stamp does not contain membership/ practicing certificate number, same may be recorded by hand.
• Passport / Driving License / Identity proofs etc attached are expired. – Only such documents which are currently valid should be attached.

Purpose of the e-form

Any person intending to become the director in a company is required to make an application to MCA for allotment of a unique identification, namely, Director Identification Number (DIN) through this e-Form.

♠ Any person intending to apply for DIN shall have to make an application in e-Form DIR-3 and should follow the following procedure:

♠  Download Form- DIR-3 from MCA Portal by given link.

http://www.mca.gov.in/MinistryV2/Download_eForm_choose.html

♠ Fill the given Particulars in e-form.

♠  Attach the photograph (JPEG).

♠  Attach scanned copy of supporting documents (Proof of Identity, Proof of Residence of Applicant and DIR-4): List Attached Below

♠  Physical documents are not required to submit at DIN cell.

♠  The e-Form shall have to be digitally signed and shall be uploaded on MCA21 portal.

♠  Form DIR-3 is mandatorily to be signed by an Applicant and a practicing professional or secretary (who is a member of ICSI) in whole time employment or the Director of the existing company.

♠  The applicant is required to get himself/herself registered on the MCA21 Portal to obtain login id, which is necessary for payment of the fees or the Professional is required to get himself/herself registered on the MCA21 Portal to obtain login id, which is necessary for payment of the fees

♠  After obtaining the login-id, Login to the MCA21 portal and click on ‘e-Form upload’ link available under the ‘e-Forms’ tab for uploading the e-Form DIR-3.

♠  Upon upload, pay the fees for e-Form DIR-3.

♠  Only electronic payment of the fees shall be allowed (I.e. Net banking / Credit Card). No challan payment will be accepted under revised procedure of DIN allotment.

♠  e-Form DIR-3 will be processed only after the DIN application fee is paid.

♠  Approved DIN shall be generated in case the form is being signed by a practicing professional and details have not been identified as potential duplicate. Provisional DIN shall be generated in case form is signed by secretary in whole time employment or Director of existing company and details have been found as potential duplicate. A suitable informational message and an email shall be provided to the user that the DIN shall be approved after due verification by the DIN cell.

♠  Processing of e Form DIR-3.

♠  In case, DIR-3 gets certified by the professional (i.e. CA (in whole time practice)/ CS (in whole time practice)/ CWA (in whole time practice)/, the DIN will be approved by the system immediately online (in case it is not potential duplicate).

♠  Post-approval changes in particulars of Form DIR-3.

♠  If there is any change in the particulars submitted in e-form DIR-3, applicant can submit e-form DIR-6 online. For instance in the event of change of address of a director, he/ she is required to intimate this change by submitting e-form DIR-6 along with the required attested documents.

FAQ’s

1. Why to get e-form DIR-3 attested from Professional?

Answer:

• If eForm is digitally signed by a Chartered Accountant (CA) or Cost Accountant (CWA) or Company Secretary (CS) (in whole time practice) then the supporting documents attached shall be self-attested by the applicant.

• If eForm is digitally signed by secretary (who is member of ICSI), in whole time employment or director of existing company then the supporting documents attached shall be either self-attested by the applicant or duly attested by either Public Notary or a Gazette Officer of a Government. {The attesting authority must indicate the following while attesting the documents:- (i) Signatures; (ii)Name in full in Capitals; (iii) Registration No.; and (iv) Seal/ Stamp. }

• In case, the director/ designated partner is residing outside India, then the attached supporting documents should be attested by the Consulate of the Indian Embassy, Foreign public notary. In case of director, supporting documents can also be attested by Company secretary in full time employment /CEO / Managing director of the Indian company in which he / she proposed to be a director.

2. List of Mandatory Attached Documents:

The following are the mandatory attachments to be filed in all cases:

A. Proof of Identity of Applicant

• In case of Indian nationals, Income-tax PAN is a mandatory requirement for proof of identity.
• In case of foreign nationals, passport is a mandatory requirement for proof of identity.
• Proof of identify enclosed with e-Form DIR-3 should also contain the date of birth of the applicant and the same should match the date of birth filled in the application form. In case the proof of identify does not indicate the Date of Birth then additional proof of Date of Birth, duly certified/ attested, should be attached.

B. Proof of residence of applicant

• Address proofs like: Passport, Election (Voter Identity) Card, and Ration Card, Driving License, Electricity Bill, Telephone Bill or Aadhar shall be attached and should be in the name of applicant only.
• In case of Indian applicant, documents should not be older than 2 months from the date of filing of the e-Form.
• In case of foreign applicant, address proof should not be older than 1 year from the date of filing of the e-Form

C. Copy of verification by the applicant as per e-Form No. DIR-4- DIR-4 shall contain the Name, Father’s name, date of birth and text of declaration and physical signature of the applicant)

In case of proofs which are in languages other than Hindi / English, the proofs should be translated in Hindi / English from professional translator carrying his details (name, signature, address) and seal. In the case of foreign nationals, translation done by the notary of home country is also acceptable.

Any other information can be provided as an optional attachment(s).

(Author – CS Divesh Goyal, ACS is a Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com)

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