Summary: DIR-3 KYC compliance, mandated by the Ministry of Corporate Affairs (MCA), requires all holders of Director Identification Numbers (DIN) or Designated Partner Identification Numbers (DPIN) to update their KYC details annually by September 30th. This process involves two forms: DIR-3 KYC, which must be filed for the first time after DIN allotment and authenticated by a professional, and DIR-3 KYC (Web), which needs to be filed annually without fees. The DIR-3 KYC (Web) form is used for confirming existing details through OTP verification and does not require professional authentication. Failure to file DIR-3 KYC on time results in deactivation of the DIN, prohibiting directors from performing official duties, and incurs a late fee of ₹5,000. The procedure includes logging into the MCA portal, entering DIN details, verifying through OTP, and submitting the form. Proper adherence to these requirements ensures continued compliance and avoids penalties.
KYC stands for “Know Your Customer”. Whenever we hear about KYC the Bank KYC comes to our mind.
Banks requires its customers (account holders) to update the PAN, Aadhhar number and other details at certain intervals to ensure that only genuine account holder is executing the transaction.
In similar manner MCA (Ministry of Corporate Affairs) requires every DIN (Director Identification Number) or DPIN (Designated Partner Identification Number, applicable in case of LLP) holder to do KYC on annual basis within 30th September from end of relevant Financial Year to ensure the identity of directors.
We will divide the whole discussion of DIR-3-KYC form under following 3 heads:
a) When to file DIR-3-KYC and DIR-3-KYC (web)
b) Steps of filing DIR-3-KYC (web)
c) Consequences of not filing DIR-3-KYC (web) within due date.
a) When to file DIR-3-KYC and DIR-3-KYC (web)
There are two forms for KYC:
1) DIR-3 -KYC
2) DIR-3-KYC (Web)
Both these forms are available for online filling under V3 (i.e no pdf to be downloaded for filling up the data) and both these forms refers to same Rule i.e Rule 12A of The Companies (Appointment and Qualification of Directors) Rules, 2014.
Let’s have a look at the requirement of Rule 12A. Rule 12A of The Companies (Appointment and Qualification of Directors) Rules, 2014, provides as below:
| Rule 12A- Directors KYC
Every individual who holds a Director Identification Number (DIN) as on 31st March of a financial year as per these rules shall, submit e-form DIR-3- KYC for the said financial year to the Central Government on or before 30th, September of immediate next financial year. Provided that every individual who has already been allotted a Director Identification Number (DIN) as at 31st March, 2018, shall submit e-form DIR-3 KYC on or before 5th October,2018. Provided further that where an individual who has already submitted e-form DIR-3 KYC in relation to any previous financial year, submits web-form DIR-3 KYC-WEB through the web service in relation to any subsequent financial year it shall be deemed to be compliance of the provisions of this rule for the said financial year: Provided also that in case an individual desires to update his personal mobile number or the e-mail address, as the case may be, he shall update the same by submitting e-form DIR-3 KYC only “on or before 30th September of the financial year”. Provided also that if an individual intends to update his personal mobile number or the email address again at any time during the financial year in addition to the up-dation allowed under the third proviso, he shall update the same by submitting e-form DIR-3 KYC on payment of fees of five hundred rupees. (Inserted w.e.f 01.08.2024 via Notification No G.S.R. 412(E). dated 16.07.2024) Provided also that fee for filing e-form DIR-3 KYC or web-form DIR-3 KYC-WEB through the web service, as the case may be, shall be payable as provided in Companies (Registration Offices and Fees) Rules, 2014. Note: For the financial year ending on 31st March 2019, the individual shall submit e-form DIR-3 KYC or web Form DIR-3 KYC-WEB, as the case may be, on or before the 14th October, 2019. |
By reading the above provision, we can summarise the requirement of DIR-3 KYC forms as below:
| DIR-3-KYC form | DIR-3-KYC (web) form |
| 1) Required to be filed by a director for the 1st time after allotment of DIN | 1) Required to be filed by a director every year on or before 30th September from end of relevant financial year (provided DIR-3-KYC has been filed once before) |
| 2) This form is required to be authenticated by a Practicing CA/ CS/ CWA and w.e.f 01.08.2024, a payment of Rs 500 to be made for filing this form. | 2) There are no fees for filing this form and it does not require to be authenticated by a Practicing CA/ CS/ CWA. |
| 3) Can be used for updating mobile number or / and email address only. For changing any other details (like updating address, adhar, voter card, PAN, photograph etc) DIR-6 has to be filed separately. | 3) Only confirmation of existing data base of director is done based on authentication of mobile number OTP and e-mail OTP. |
b) Steps of filing DIR-3-KYC (web)
Following are the steps of filing DIR-3 KYC (web)
Step 1) Login to MCA (V3 filing) portal using your credentials:
Step 2) Navigate to MCA Services → Company e-filing à DIN Related Filing → Form DIR-3 KYC (Web) Verify Director’s KYC Details
Step 3) Put the DIN of Director for whom KYC is required to be done (In case KYC has been done earlier after the end of financial year then system gives an indication that KYC has already been done).
–
Step 4) Enter OTP number generated in mobile number and e-mail address as shown below:
Step 5) After putting OTP, below screen will appear signifying verification of OTP:
Step 6) Then click ‘next’ button:
Step 7) It will display the details of DIN entered as per MCA database:
Step 8) Then ‘proceed’ and below screen will appear:
Step 9) Then ‘submit’ and below screen will appear:
Step 10) After submitting the form, the status can be viewed under “My Application” à “Under Processing”. Once the form is approved the same will shift to “Approved” Tab as shown below:
c) Consequences of not filing DIR-3-KYC (web) within due date
Following are the consequence of not filing DIR-3 KYC within due date:
- DIN will be de-activated after the due date (i.e 30th September from end of financial year) which means the director cannot perform any duties (like signing and uploading MCA forms, his appointment or retirement from a company through filing of DIR-12 etc ) linked to their directorship until the DIN is reactivated.
- Fees of Rs 5,000 is to be paid for delayed filing of DIR-3 KYC.
Author Bio
