As the Ministry of Corporate Affairs has started overhauling and cleaning its records and registry, it has initiated the process of Annual KYC of all the Directors (e-form DIR-3KYC) and giving a snag to the irregularities occurred due to outdated filing and unsystematic procedures. In the Editorial, Author has made an effort to throw light on the origin of KYC process and answers of few much-asked questions by the stakeholders and suggestions to make it easier and risk-free for a professional certifying the Form.
The Ministry of Corporate Affairs (MCA) initiated the KYC of prescribed Directors vide Notification dated 05th July 2018 through the Companies (Appointment and Qualification of Directors) fourth Amendment Rules, 2018 and the Companies (Registration Offices and Fees) Third Amendment Rules, 2018 which came into force on 10th July 2018.
The Companies (Appointment and Qualification of Directors) fourth Amendment Rules, 2018 empowers the Central Government or Regional Director or any other Officer authorized by the Central Government or Regional Director (Northern Region) to deactivate the Director Identification Number (DIN) of a Director who does not intimate his particulars in e-form DIR-3KYC within 30th April of every year. Directors who do not intimate their particulars in DIR-3KYC, will have their DIN deactivated with reason as ‘Non-filing of DIR-3KYC’ and will have to pay a fee of Rs. 5000 after the due Date i.e. 30th April of every year.
Note: For the Financial Year 2018-19 the due date of intimation in e-form DIR-3KYC is 31st August 2018 and after that a fee of Rs. 5000 shall be payable. Therefore, every Director who has been allotted DIN before 31st March 2018 and is in ‘Approved’ status shall be required to file e-form DIR-3KYC before 31st August 2018.
The e-form DIR-3KYC can be downloaded from MCA Website.
1. Whether a Director having DIN but has never appointed Director in any Company is required to file e-form DIR-3KYC?
Ans: Yes, All individuals have to update the KYC having DIN irrespective of the fact such individuals ever held directorship in any company or not.
2. Whether a Disqualified Director also required to file e-form DIR-3KYC?
Ans: Yes, Directors having ‘Approved’ status has to file the e-form mandatorily.
3. Whether a person holding a DPIN (Designated Partner Identification Number) is required to file e-form DIR-3KYC?
Ans: Yes, DPIN is same as DIN. Therefore holders of DPIN are also required to file e-form DIR-3KYC.
4. Whether the Certifying Professional, being a Director can himself affix DSC in the capacity of Director as well as Professional?
Ans: No, A person cannot certify or verify his own documents so there some other professional must be engaged for certification.
5. What to do if the Details of Directors varied from the details on MCA?
Ans: In this case, the Director has to first file e-form DIR-6 and update the latest information and then file e-form DIR-3KYC.
6. When shall the OTP be generated?
Ans: The OTP shall be generated once the Form is duly filled and the pre-scrutiny check is done.
7. Who can certify the e-form DIR-3KYC?
Ans: The Form can be certified by any Practicing Professional preferably a Company Secretary.
8. What can be done if e-form DIR-3KYC is not filed till 31st August 2018?
Ans: The Director has to file the e-form with an additional fee of Rs. 5000 after 31st August 2018.
Although care has been taken to ensure the accuracy, completeness & reliability of the information provided, Author is not responsible for any errors or omissions in the article, 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 professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information.
(In case of any discussion or discussion/ suggestions, Author can be reached for further details at [email protected])