Director Identification Number (DIN) is crucial for individuals aspiring to be directors or those already serving as directors of a company. The process of obtaining DIN used to involve a one-time application through Form DIR-3. However, the Ministry of Corporate Affairs (MCA) has introduced an annual KYC filing requirement for all DIN holders through Form DIR-3 KYC. This article delves into the details of DIR 3 KYC, its legal provisions, applicability, types, fees, and key points for successful filing.
Due Date for DIR 3 KYC is 30th September ever year.
Legal Provisions
Form DIR-3 KYC is mandated by Rule 12A and Rule 11(2) and (3) of The Companies Appointment and Qualification of Directors Rules, 2014. According to Rule 12A, individuals with a DIN as of March 31st must submit Form DIR-3 KYC by September 30th of the immediate next financial year. Rule 11(2) empowers the Central Government to deactivate a DIN if the director fails to submit their particulars within the stipulated time.
Extract of Rule 12A:
Every individual who holds a Director Identification Number (DIN) as on 31 st March of a financial year as per these rules shall, submit form DIR-3-KYC to the Central Government on or before 30th, September of immediate next financial year.
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:
Rule 11(2) The Central Government or Regional Director (Northern Region), or any officer authorized by the Central Government or Regional Director (Northern Region) shall, deactivate the Director Identification Number (DIN), of an individual who does not intimate his particulars in e-form DIR-3-KYC or the web service DIR-3-KYC-WEB as the case may be within stipulated time in accordance with rule 12A:
Applicability of DIR 3 KYC
A DIN holder is required to file DIR 3 KYC with the authority. If their Director Identification Number (DIN) was assigned to them on or before March 31. Even the DIN holder is required to file KYC under the below-mentioned conditions:
- A DIN holder has [1]disqualification status.
- A DIN holder does not have any directorships.
- A DIN holder holding only a designated partnership in an LLP is required to file it.
- A DIN holder has never used DIN for any Company or LLP.
Note:
A DIN holder obtained DIN after 31 March, not required to file KYC form for that financial year.
TYPE OF DIR 3 KYC
The form is divided into two types.
i. Form DIR 3 KYC: A DIN holder required to file DIR 3 KYC form in following situations:
- When its first time KYC
- In case of change of Mobile No and Email ID
ii. Web DIR 3 KYC: Any Din Holder who has already submitted form DIR-3 KYC in any of the previous Financial Years and who does not require an update in any of his KYC details as submitted may perform his annual KYC by accessing the DIR-3 KYC web service.
Dir-3 KYC WEB is simply to verify the data filled by the Din Holder in his Previous Year’s form Dir-3 KYC.
FEE FOR DIR 3 KYC
Within Due Date: If Form DIR-3 KYC is filed within the due date of the respective financial year, no fee is payable.
After Due Date: However, if filed after the due date, for DIN status ‘Deactivated due to non-filing of DIR-3 KYC, a Fee of INR 5000 becomes payable.
Que: Can DIR-3 KYC form be filed if the DIN is deactivated?
Ans: DIR-3 KYC can be filed for the status ‘Deactivated due to non-filing of DIR-3 KYC.’
KEY POINTS FOR FILING THE FORM DIR-3 KYC
- Every DIN Holder shall use a unique personal mobile number and email address.
- This number and email address will be verified by an OTP (one-time password).
- The digital signature of the director is mandatory to file the DIR 3 KYC form. DIR 3 KYC The Web doesn’t require DSC.
- Form DIR 3 KYC is mandatory and requires a DSC for professionals also. Web KYC doesn’t require a DSC from anyone.
Details are required to mention in form DIR 3 KYC.
- Name and Father Name of Director
- Date of Birth
- Nationality
- PAN No.
- Passport No, if any
- Aadhar No.
- Personal Mobile No.
- Personal Email ID
- Present Resident Address with proof
- Permanent resident address with proof
FAQs
Is multiple filing of DIR-3 KYC allowed?
The system will not allow an applicant to file form DIR-3 KYC more than once. If KYC has already been filed for a DIN and that DIN is entered again, the system reports that the form has already been filed.
Is a disqualified director required to file form DIR-3 KYC?
Yes. Anyone who has been assigned a DIN and whose DIN status is ‘approved’ is required to file form DIR-3 KYC. As a result, disqualified directors must also file form DIR-3 KYC.
Conclusion: In a digitized corporate landscape, complying with regulatory requirements is crucial. Form DIR-3 KYC is an integral part of this compliance, ensuring that directors’ information is up-to-date and accurate. This article has provided a comprehensive understanding of DIR 3 KYC, from legal provisions to filing processes, helping directors stay informed and compliant with this essential aspect of corporate governance.
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Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com).
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