Director KYC: Latest Provisions, Checklist and FAQs

#LATEST PROVISIONS #CHECKLIST #FAQ #OVERVIEW #HOW TO DO DIRECTOR KYC

Director identification number (DIN)

DIN refers to a unique identification number allotted to an individual who is willing to be a director or is an existing director of a company.

DIN is obtained by filing an application in eForms DIR-3.

However, now with an update in MCA’s registry, it becomes mandatory for all directors having DIN to submit their KYC details in e-Form DIR 3 KYC every year.

As per MCA announcement, any director who was allotted a DIN by or on 31st March 2018 and whose DIN is in Approved status, will have to submit his KYC details to the MCA. Further, this procedure is mandatory for the disqualified directors too. From the Financial Year 2019-20 onwards, it is mandatory for every director who has been allotted a DIN on or before the end of the financial year and whose DIN is in Approved status, will have to file form DIR-3 KYC before 30th September of the immediately next financial year.

After the expiry of the respective due dates, the system will mark all non-compliant DINs against which the DIR-3 KYC form has not been filed as ‘Deactivated due to non-filing of DIR-3 KYC’.

DIR-3 (KYC): If the director is filing DIN KYC for the first time, it has to be filed by uploading a duly filled copy of the MCA Prescribed eForms DIR-3 (KYC). Along with the eForms, the copy of address proof is filed as a mandatory attachment. The e-form DIR-3 (KYC) is signed with the applicant director’s digital signature, followed by attestation by a CA, CS, or CMA in full-time practice. Any DIN holder who is filing his KYC details for the first time with MCA must file all KYC details only through eForms DIR-3 KYC.

Web based KYC: For a person who has filed the DIN KYC in the previous year and in case his particulars, such as a residential address, mobile number and email have not changed, then such persons are eligible to file the Director KYC in a web-based facility with OTP based authentication. By inserting a provision in Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2018, the Ministry of Corporate Affairs has enabled a facility on the MCA portal to file the director KYC through a web-based facility. There is no need to submit or upload any document in Web-based filing. However, the director must ensure that the director’s particulars are correct and there is no change in the particulars. Any DIN holder who has already submitted eForms 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.

Note: For the first time filers of the director KYC, the web-based facility is not available. Such a person has to file the DIN KYC by uploading the DIR-3 KYC form after certification by a practicing professional.

Statutory Fees: Form DIR-3 KYC, if filed within the due date of the respective financial year, no fee is payable. However, if filed after the due date, for DIN status ‘Deactivated due to non-filing of DIR-3 KYC a Fee of Rs.5000(Rupees Five Thousand Only) becomes payable. The purpose of filing the DIR-3 KYC form to the ROC is to keep the records of the ROC updated with the correct address, mobile and email address of the directors/designated partners.

DIR-6: In case of any change(s) in the director’s address or other particulars, it is the personal responsibility of such a director to file a Form DIR-6 with appropriate documents so that the ROC updates the records of such DIN Holder.

List of Documents Required For Director KYC Filing

• Photograph
  Front-facing latest passport size colour photograph of the director of Partner of LLP in JPEG Format.
• Address Proof Passport, Voter Card, Driving License, Electricity Bill, Telephone Bill (Not Older Than 2 Month) or Aadhaar
• Pan Card

PAN is mandatory for Indian Citizens, Please submit a copy of your pan card. Ensure that the particulars are updated

• Mobile Number for OTP

Mobile number is required for OTP verification. Foreign citizens must give their overseas mobile No.

Passport

1. Passport is mandatory for Foreign Citizens, However, if the Indian applicant has a passport then it is mandatory to file.

2. Email ID for OTP

Furnish your email id on which the government can send communication and OTP for verification

• Details of Citizenship, Gender, Date of Birth.

Steps to do DIN-3(KYC)

• The User has to download form DIR-3 (KYC) from MCA website.
• Fill in complete particulars of the Applicant Director.
• Attach address proof, ID proof, recent Photograph etc. All the attachments must be self attested by Applicant (Notarised/Apositilised in the home country of Applicant – incase of foreign national and must be in English (If not in English – Certified Translated version thereof).
• Provide Details of Citizenship, Gender and Date of birth etc.
• The E-form needs to be signed by affixing Digital Signatures (DSC) of the Applicant Director and Practicing Processional.
• The E-form then needs to uploaded on MCA website and necessary challan/acknowledgement is thereafter generated by the MCA system.

Steps to do Web-KYC

• The Web-KYC is done by inserting DIN of Applicant Director on the MCA portal at the allotted place.
• As soon as the DIN is inserted, the MCA system allows the user to generate One time Passwords (OTPs) which are sent to Applicant Director Mobile no. and e-mail ID registered by him during his initial KYC [by filing form DIR-3 (KYC)].
• The OTPs generated remain valid for 5 minutes and the Applicant is required to share the OTPs of both mobile and e-mail Id with the User on real time basis to enable user to insert the same in the MCA system to complete his Web KYC.
• Any delay in providing OTPs may result in OTPs getting expired and MCA System may not accept the same and the process of generating new OTPs will have to be repeated again.
• After insertion of OTPs, the system shows the complete KYC details of Applicant and requires the user to tick a declaration stating that the above particulars are true and that there are no changes to be made.
• The User has to tick and submit the declaration and the MCA system thereafter generates an acknowledgement in the form of a zero fee Challan for the record and reference of Applicant.