Background: Ministry of Corporate Affairs (MCA) has further amended the Companies (Appointment and Qualification of Directors) Rules, 2014 and these rules may be called the Companies (Amendment and Qualification of Directors) Third Amendment Rules, 2019.
As per the Companies (Amendment and Qualification of Directors) Third Amendment Rules, 2019 those who have already filed DIR-3 KYC, would only be required to complete their KYC through a simple web-based verification service, which will be pre-filled with data, based on the records present in the registry of the government, for ease of verification by such persons concerned.
We have highlighted the gist of notification in Questions and Answers format:
| Sr. No | Questions | Answers |
| 1. | What is the effective date of the notification? | The notification shall come into force with the effect from July 25, 2019. |
| 2. | To whom this notification is applicable? | The notification is applicable to every an individual who is holding Director Identification Number (DIN). |
| 3. | Who shall file web-form DIR-3 KYC-WEB through the web service? | Any director who has filed e-Form DIR 3-KYC earlier and does not wish to update any details shall file web-form DIR-3 KYC-WEB through the web service. |
| 4. | Is this applicable to a foreign director? | Yes it applicable to all kind of director including foreign national |
| 5. | Who shall file e-Form DIR-3 KYC? | An individual who 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. |
| 6. | What is to be done in case an individual wishes to update details other than the phone number and e-mail address? | 1. An individual who desires to update details other than the phone number and e-mail address shall do so by filing e-Form DIR-6.
2. Post filing of e-Form DIR-6 an individual shall file web-form DIR-3 KYC-WEB through the web service. |
| 7. | Is there any OTP required while filing web-form DIR-3 KYC-WEB through the web service? | Yes, there are 2 OTP’s required while filing web-form DIR-3 KYC-WEB through the web service.
1. OTP will sent to registered email id and cell phone no. |
| 8. | Whether a foreign director will able to receive the OTP at their international number? | In the ideal scenario, they should be able to receive the OTP at their international registered number. |
| 9. | What is the validity of the OTP? | The OTP shall be valid for a span of 30 minutes and can be sent a maximum 10 times a day. |
| 10. | In which cases is Digital Signature Certificate (“DSC”) of director required? | The DSC is not required in case of web-form DIR-3 KYC, however, it is required in e-Form DIR-3KYC and e-Form DIR-6. |
| 11. | Can I update my DIR 3 KYC WEB on my own? | Yes, you can, if you have the MCA login details then you can go ahead with DIR 3 KYC WEB.
This is a user-friendly process. If any of the directors are travelling or due to the logistic if the concerned person is not available then director with the help of MCA login detail can do the needful. |
| 12. | What is the due date for meeting the KYC compliance? | The due date of filing the e-Form DIR-KYC and web-form DIR-3 KYC is September 30, 2019. |
| 13. | Is there any ROC fee required to be paid for filing the web-form DIR-3 KYC-WEB | If the form is filed within the due date, no fee is required to be paid. |
| 14. | What is the procedure to file web-based DIR-3KYC? | The following is the procedure:
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| 15. | What are the consequences of non-filing of e-Form DIR-KYC or web-form DIR-3 KYC-WEB within due date? | If the director has not filed the e-form DIR-KYC or web-form DIR-3 KYC-WEB within the due date with the Registrar of Companies:-
1. DIN status shall be seen as “Deactivated”; 2. The director will have to pay a delay fee of INR 5,000. |
| 16. | Circular link | https://taxguru.in/company-law/companies-appointment-qualification-directors-third-amendment-rules-2019.html |
Author Bio
For foreign Directors, after entering the DIN in DIR-3 KYC WEB , following message is appearing ” DIR 3 KYC is already filed for the DIN against SRN XXXXXX.” This implies there is no necessity to file DIR 3 KYC for the foreign directors.