Applicable Provisions: Section 153 of Companies Act, 2013 r/w Rule 9 & 10 of Companies (Appointment and Qualification of Directors) Rules, 2014.
What Provisions say?
Section 152 (4) mandates that every person proposed to be appointed as a director by the company in general meeting or otherwise, shall furnish his Director Identification Number or such other number as may be prescribed under section 153 and a declaration that he is not disqualified become a director under this Act.
As per Section 153 of the Act, every individual intending to be appointed as director in an existing company shall make an application electronically in Form DIR-3 for allotment of director Identification Number to the Central Government along with the prescribed fees. Further, DINs to the proposed first directors (not having approved till) in respect of new companies would be mandatorily required to be applied for in SPICe forms (subject to a ceiling of 3 new DINs) only.
Procedure for Application for allotment of DIN (Rule 9):
1. Every individual, who is to be appointed as director of a company shall make an application electronically in Form DIR-3 (Application for allotment of Director Identification Number) to the Central Government for the allotment of a Director Identification Number (DIN) along with such fees as may be prescribed.
2. The applicant shall download Form DIR-3 from the portal, fill in the required particulars and attaching photograph; proof of identity; proof of residence; board resolution proposing his appointment as director in an existing company and specimen signature duly verified and sign the form digitally.
3. Form DIR-3 shall be signed and submitted electronically by the applicant using his or her own Digital Signature Certificate and shall be verified digitally by a Company Secretary in full time employment of the company or by the Managing Director or Director or CEO or CFO of the existing company in which the applicant is intended to be appointed as a director.
4. Rule 9(4) provides that in case the name of a person does not have a last name, then his or her father’s or grandfather’s surname shall be mentioned in the last name along with declaration in Form-DIR-3A. This declaration will be submitted along with Form DIR-3.
Procedure for Allotment of DIN (Rule 10):
Here the Central Government within 1 month from receipt of application made u/s 153 r/w Rule 9 shall allot a DIN to the applicant through below process:
1. On the submission of the Form DIR-3 on the portal and payment of the requisite amount of fees through online mode an application number shall be generated by the system automatically.
2. After generation of the application number, the Central Government shall process the application received for allotment of DIN under Sub-rule (2) of Rule 9 decide on the approval or rejection thereof and communicate the same to the applicant along with DIN allotted in case of approval by way of a letter by post or electronically or in any other mode within a period of 1 month from the receipt of such application.
3. If the Central Government, on examination, finds such application to be defective or incomplete in any respect, it shall give intimation of such defect or incompleteness, by placing it on the website and by email to the applicant who has filed such application, directing the applicant to rectify such defects or incompleteness by resubmitting the application within a period of fifteen days of such placing on the website and email.
4. Here the CG may reject the application and direct the applicant to file fresh application with complete and correct information, where the defect has been rectified partially or the information given is still found to be defective or treat and label such application as invalid in the electronic record in case the defects are not removed within the given time and inform the applicant either by way of letter by post or electronically or in any other mode.
5. In case of rejection or invalidation of application, the fee so paid with the application shall neither be refunded nor adjusted with any other application.
6. All Director Identification Numbers allotted to individual(s) by the Central Government before the commencement of Companies (Appointment and Qualification of Directors) Rules, 2014 shall be deemed to have been allotted to them under these rules.
7. The DIN so allotted under these rules is valid for the life-time of the applicant and shall not be allotted to any other person.
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Note: The above-mentioned procedures are Ad-Verbatim as per the Sections and Rules cited.
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