The formal introduction of the Director’s Know Your Customer (KYC) requirement in India came into effect on July 10th, 2018, through the Companies (Appointment and Qualification of Directors) fourth Amendment Rules, 2018. Previous to this director’s KYC was not required to filed every year within the due date. This amendment mandated the filing of the DIR-3 KYC form to ensure accountability and legal compliance. Filing DIR-3 KYC is not just a regulatory requirement but a crucial step for Director and companies to maintain to maintain their active status. Understanding the importance of DIR-3 KYC and the timelines for submission can save directors from potential inconveniences like deactivation of their Director Identification Number (DIN).
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Requirement to File DIR-3 KYC
As per the amendment, every director allotted a DIN on or before the end of each financial year (March 31st) must file the DIR-3 KYC form if their DIN status is ‘approved.’ The mandate aims to keep the information of directors up-to-date and is essential for maintaining an active status for both directors and their companies.
Due Date to File DIR-3 KYC
Initially, the due date for filing was set as April 30th of the immediate next financial year. However, subsequent amendments in 2019 changed the deadline to June 30th and later to September 30th of the immediate next financial year. Relevant details as re below:
i. As per Companies (Appointment and Qualification of Directors) fourth Amendment Rules, 2018 the due date to file DIR-3KYC was on or before 30th, April of immediate next financial year.
ii. After the Substituted by the Companies (Appointment and Qualification of Directors) Amendment Rules, 2019, dated: 30.04.2019, the due date to file DIR-3KYC was substituted “on or before 30th June of immediate next financial year”
iii. After the Substituted by the Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2019, dated: 25th July 2019 the due date to file DIR-3KYC was substituted on or before 30th September of immediate next financial year
Documents Required for Filing DIR-3 KYC
Filing DIR-3 KYC necessitates the submission of several important documents:
- Permanent Account Number(PAN)
- Voter Identity Card
- Passport
- Driving License
- Aadhaar Card
- Residential Address
- Mobile No and Email Address
Situations When DIR-3 KYC E-FORM /WEB Must Be Filed
| DIR-3 KYC E-FORM | DIR-3 KYC WEB |
| (1) After the after is incorporated in the immediately subsequent financial year the directors KYC has to be done in DIR-3 KYC e-form | (1) This is applicable to those who has submitted DIR-3 KYC e-form in previous financial year and shall be applicable in all the subsequent years. |
| (2) Director who is alloted DIN for the first time, in the immediately subsequent financial year dir-3 kyc e-form has to be filed. | |
| (3) IF There is any change in any details like mobile no, email address then DIR-3 KYC e-form is applicable. |
Consequences Of Not Filing Form DIR-3 KYC within the specified due date
In case any director fails to file DIR-3KYC WEB/ E-FORM by 30th September on MCA 21 portal, then the DIN will be marked as ‘Deactivated due to Non filing of DIR-3 KYC, due to which the directors will be unable to file any e-forms or do any filings with the DIN allotted until and unless the DIN is re-activated, for which Rs. 5,000/- has to be paid as late fees for each DIN.
Conclusion
Filing DIR-3 KYC is a regulatory requirement that holds substantial importance for directors and companies. Understanding its nuances, from the timeline to the documents required, can prevent inconvenience and legal repercussions. Directors must adhere to these guidelines to ensure smooth corporate governance and compliance with Indian regulations. Failure to comply may result in deactivation of the DIN, hindering the director’s capability to function effectively.
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Disclaimer: The entire contents of this document have been prepared based on relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness, and reliability of the information provided, I assume no responsibility, therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a piece of professional advice and is subject to change without notice. I assume no responsibility for the consequences of the use of such information.
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