Circular Simplifying of DIN rules and making Possible Allotment of DIN on the same day

DIN process simplified

Background :-An individual who is to be appointed as a director of an Indian Company is required to obtain a Director Identification Number (DIN) from Ministry of Corporate Affairs (MCA), Government of India in compliance with the Companies Act, 1956 (the Act) read with Companies (Directors Identification Number) Rules, 2006 (DIN Rules). The objective of DIN is to establish with MCA the existence/residence of a person, who intends to become a director of a company. The DIN Rules provides detailed procedure for obtaining DIN.

Simplification of DIN procedure

MCA has simplified the process of obtaining DIN and recommended the below mentioned procedure:

1. Application for DIN will be made in DIN 1 eForm. No physical submission of documents will be accepted and for this purpose scanned documents along with verification by the applicant will be attached with the eForm. Only online fee payment will be allowed.

2. DIN 1 eForm can be digitally signed by the professional who shall also confirm that he has verified the particulars of the Applicant given in the application. Where the DIN 1 is verified by the professional, the DIN will be approved by the system immediately online. In other cases, the DIN cell will examine the application and same shall be disposed of within one or two days.

3. The above procedure will also apply to filing of DIN 4 i.e. intimating changes in particulars of Directors.

Companies (Directors Identification Number) Rules, 2006 are being amended on the above lines.

Conclusion :-The simplified procedure is expected to facilitate corporate action and avoid delays.

___________________________________________________________

General Circular No.5/2011

F.No.2/1/2011 CL.V

Government of India

Ministry of Corporate Affairs,

Shastri Bhawan,

5th Floor, ‘A’ Wing,

Dr.Rajendra Prasad Road

New Delhi.

Dated: 04.03.2011

To

All Regional Directors,

All Registrars of Companies,

All Official Liquidators.

 SUBJECT ; DIN PROCESS – SIMPLIFIED – REG.

Sir,

I am directed to inform that the Ministry’s has re-examined the process of allotment of Directors Identification Number (DIN) to be obtained u/s 266B of the Companies Act, 1956. The present process is cumbersome and time consuming. Representations have been received in the Ministry that the documents required to be submitted should be simple to prove the existence/residence of a person, who intend to become a director of a company.

The Ministry has constituted a Group to examine the business process re-engineering under MCA-21. In order to speed up and simplify the process to obtain a DIN, the below mentioned procedure have been recommended.

1. Application for DIN will be made on eForm; No physical submission of documents shall be accepted and for this purpose Scanned documents along with verification by the applicant will be attached with the eForm. Only online fee payment will be allowed i.e. No challan payment

2. The application can also be submitted online by the applicant himself using his DSC.

3. DIN 1 eForm can be digitally signed by the professional who shall also confirm that he has verified the particulars of the Applicant given in the application.

4. Where the DIN 1 is verified by the professional, the DIN will be approved by the system immediately online.

5. In other cases the DIN cell will examine the application and same shall be disposed of within one or two days.

6. Companies (Directors Identification Number) Rules, 2006 are being amended on the above lines.

7. Penal action against the applicant and professional certifying the DIN application in case of false information / certification as per provisions of section 628 of the Act will be taken in addition to action for professional misconduct and revocation of DIN, allotted on false information

8. The above procedures is expected to enable allotment of DIN on the same day.

9. The above procedures applies to filing of DIN 4 intimating changes in particulars of Directors.

A notification to notify the aforesaid procedure is being issued. After issue of necessary notification, the applicant/professionals/DIN Cell are advised to follow the notified procedures for allotment of DIN.

Yours faithfully,

(Monika Gupta)

Assistant Director(Inspection)

Tele :23387263

Copy to: DIN Cell,MCA, PDIL Bhawan, Sector-1, Noida.