RATIONAL BEHIND THE MOVE

As the continuous effort from the Ministry toward the more complied environment the latest step has come to weed out bogus directorships and updating its registry, Ministry of Corporate Affairs (MCA) has decided to conduct KYC process for all directors, including those who have been disqualified, of all companies annually.

In order to implement its significant decision above, MCA vide Notification dated 5th July, 2018 has amended the Companies (Appointment and Qualification of Directors) Rules, 2014 by amending Rule 11 by insertion of sub-rules (2) & (3) and Introduction of New  Rule 12A relating to ‘Directors KYC in e-Form DIR-3-KYC ’ which shall come into force from 10th July, 2018.

WHO SHALL BE REQUIRED TO FILE FORM DIR-3-KYC?

  • Every individual who has been allotted Director Identification Number (DIN) on or before 31st March, 2018 and whose DIN is in ‘Approved’ status.
  • All the Directors who have been disqualified.

IMPORTANT CHECK POINTS WHILE FILLING FORM DIR-3-KYC

The Unique Personal Mobile Number and Personal Email ID of concerned Director

would have to be mandatorily provided and would be duly verified by One Time

Password (OTP).

The concerned director has to use his own Digital Signature (DSC).

The eForm should be required to be certified by the professionals like:

  • Practicing Company Secretary
  • Practicing Chartered Accountant
  • Practicing Cost Accountant

DUE DATE FOR FILING FORM DIR-3-KYC?

Every Individual who has been allotted DIN on or before 31st March, 2018 : On or before 31st August, 2018 

In Other Cases (i.e. for FY ending on 31/03/2019 & onwards on annual basis) :On or before 30th April of immediate next Financial Year

FEES PAYABLE FOR FILING OF FORM DIR-3-KYC

If the Form is filed on or before Due Date : Rs. Nil

In delayed case                                       : Rs. 5,000/-

CONSEQUENCES FOR NOT FILING FORM DIR-3-KYC ON OR BEFORE DUE DATE

The MCA21 system will mark all approved DINs (allotted on or before 31st March 2018)

against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason shown as ‘Non-filing of DIR-3 KYC’.

 WHAT ARE THE INFORMATION/ DOCUMENTS REQUIRED TO FILL E-FORM?

Sn. No. Particulars Information
1 Director Identification Number (DIN)
2 Nationality
3 Personal Mobile No.
4 Personal Email ID  

 Documents (Self Attested copy)

  1. Copy of PAN card
  2. Copy of Voters Identity Card/ Passport/ Driving License (any 1 out of these)
  3. Copy of Bank Statement / Electricity Bill/ Telephone bill/ Mobile bill (any 1 out of these, but not older than 2 months)
  4. Passport size photograph
  5. Digital Signature Certificate (DSC) of Director

In case of Foreign Director- Copy of Passport and residential proof (any 1 out of Bank Statement/ Electricity bill/ Telephone bill/ Mobile bill, but not older than 1 year).

 Verification Process

The verification will be use PAN based.

For  Indian Nationals

DSC should contain PAN

For foreign nationals

Applicant’s name in DSC would be matched with his/her name entered while filing the form(DIR-3 KYC)

In case the PAN /Name in DSC does not match with PAN/Name entered in the form, they would be required to get a DSC with PAN/Name as specified in the form.

CONCLUDING REMARKS

As the amended rules are coming into force we have to take a wake-up call by informing to all the directors of the companies about the said requirement and shall endeavor to file the Form DIR-3- KYC on or before the given due date without entailing the proposed penalty.

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9 Comments

  1. nitinkumar dedhiya says:

    Requirement for KYC of Directors- Form No. DIR-3-KYC, Is there any fees fixed by the ROC to CA to charge to client. if yes then what is the fees to be paid to CA for getting this services?

    1. csmanjulaur says:

      Sir there is no fixed fees. Govt department cannot bind the professional on the fees. You may charge as per your own will.

    1. csmanjulaur says:

      All the documents from the foreigner director needs to be as per the companies act ie Notarisation and apostille in the native country.

  2. Rahul Jain says:

    IF Foreign directors documents are only notarised instead of appostal that will be okay for approval of DIR- 3 KYC form???? or MCA can ask a query and reject the document.

  3. Padmanabh Ranchhoddas Merchant says:

    If DIN holder has been using mobile phone which is not in his own name, but in the name of his spouse (Mobile periodical bill is in the name of the spouse), for the sake of convenience, what should be mentioned in the application Form for DIR – 3 KYC? Please advise.

    1. CS LRM says:

      Mobile no. on which OTP will come needs to be used by a director personally. It doesn’t matter on whose name bill comes.
      Further, you can use any other document apart from Mobile Bill like bank statement as an address proof.

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