eform DIR-3 KYC – Time Limit and Consequence of non-filing

CS Rebecca Nevis

DIR-3 KYC: Pursuant to rule 12A of The Companies (Appointment and Qualification of Directors) Rules, 2014 as amended vide Companies (Appointment and Qualification of Directors) fourth Amendment Rules, 2018 Read with Companies (Registration Offices and Fees) Third Amendment Rules, 2018

For the purpose of updating its registry, MCA has introduced a new eform DIR-3 KYC to conduct KYC of all Directors of all Companies annually. So every individual who has been allotted a DIN as at 31^st March of a financial year is required to intimate his particulars to the Central Government by filing eform DIR-3 KYC.

Filing of DIR-3 KYC is mandatory for all Directors of all Companies who have been allotted DIN (having ‘Approved’ status) on or before 31^st March of a financial year including Disqualified Directors.

Eform DIR-3 KYC should be filed by every Director using his own DSC and should be duly certified by a practicing professional i.e. CA/CS/CMA. Unique Personal Mobile Number and Personal Email ID of the Director would have to be mandatorily indicated and would be duly verified by One Time Password (OTP).

Time limit for filing DIR-3 KYC:

The due date of filing eform DIR-3 KYC as at 31^st March of immediate previous year is 30^th April of every financial year. No Government fee would be charged if the said eform is filed on time. However, in case of delay, a fee of Rs. 5000 would be charged.

For the current financial year (2018-2019) no Government fee would be charged till 31^st August, 2018. However, in case the eform is filed on or after 1^st September, 2018, fees of Rs. 5000 would be charged.

Consequences of non-filing DIR-3 KYC: Pursuant to Rule 11 sub-rule (2) of The Companies (Appointment and Qualification of Directors) Rules, 2014

If a Director, fails to file eform DIR-3 KYC before the expiry of the due date, then MCA21 system will mark his/her DIN as ‘De-activated’ with reason as ‘Non-filing of DIR-3 KYC’. However, the de-activated DIN shall be re-activated only after eform DIR-3 KYC is filed along with payment of Rs. 5000.

In order to avoid any delay which would result in payment of Rs. 5000, the Directors are advised to file the same before the due date.