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Mandatory KYC update for Directors of Indian Inc.

As a part of maximum governance slogan of current central government, Ministry of Corporate Affairs (MCA) is launching a new form soon, which will require KYC of all existing directors of companies registered with Registrar of Companies (ROC).

As a part of maximum governance slogan of current central government, Ministry of Corporate Affairs (MCA) is launching a new form soon, which will require KYC of all existing directors of companies registered with Registrar of Companies (ROC).

According to the latest update from the department, MCA would conduct updating its registry, and will launch form DIR-3 KYC, which is to be filed by every director as on 31st March, 2018 in any of the registered company in India.  This will require mandatory unique Mobile Number and E-mail ID of every director and these details will be verified by One Time Password (OTP).  As a part of self-governance system, the form shall be duly signed by the director itself and be certified by a qualified professional ie. Company Secretary or Chartered Accountant or Cost & Management Accountant.

Some important features of this regime are as follows:

1. Every director, including disqualified directors has to file this form;

2. Unique Mobile number and E-mail ID is compulsory and these will be verified by OTP;

3. Certification by qualified professional i.e. CS / CA / CMA is mandatory;

4. Last Date for filing the form is 31st August, 2018.

The directors who have not fulfilled the above mentioned form will be marked as deactivated against their respective DIN on the records.  This deactivation will be removed once the form is filed with the additional fees (to be stipulated by MCA), without prejudice to any other action may be taken.

Categories: Company Law
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