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CS Divesh Goyal

Provisions related to Director Identification Number (DIN) Under Companies Act, 1956 and Under Companies Act, 2013

 Companies Act, 1956

As per Section 266A of Companies Act, 1956:  Every individual intending to be appointed as director of Company should obtain Director Identification Number (DIN).

As per Section 266C of Companies Act, 1956:  No individual, who had already been allotted a Director Identification Number under Section 266B, shall apply, obtain or process another Director Identification Number.

As per Section 266G of Companies Act, 1956:  If any individual or director, referred to in section 266A or section 266C, contravenes any of the provisions of those sections, every such individual or director or the company, as the case may be, who or which, is in default, shall be punishable with

  • Fine which may extend to Rs. 5000/- (five thousand rupees only) and
  • where the contravention is a continuing one, with a further fine which may extend to Rs. 500/- (five hundred rupees) for every day after the first during which the contravention continues.

Companies Act, 2013

As per Section 153 of Companies Act, 2013:  Every individual intending to be appointed as director of a company shall make an application for allotment of Director Identification Number to the Central Government in such form and manner and along with such fees as may be prescribed.

As per Section 159 of Companies Act, 2013: If any individual or director of a company, contravenes any of the provisions of Section 153, such individual or director of the company shall be punishable with

  • imprisonment for a tem which may extend to Six month or
  • with fine which may extend to Rs. 50,000/- and
  • Where the contravention is a continuing one, with a further fine which may extend to Rs. 500/- for every day after the first during which the contravention continues.


This article is especially for the person who has obtained more then 1 (One) DIN at any time. We came to know that Regional Director (Noida) has issued “Show Cause Notice U/s 266G of the Companies Act, 1956” to more than 2 Lac Persons.

If any person not received “Show Cause Notice” and having two DIN, we will advise that person to surrender One DIN and file petition with CLB for Compounding of Offence.

** One should preferably cross check from the MCA website that whether he is occupying more than one DIN as per process given below:


1. Go to MCA website Link:

2. Log in by your user ID on MCA website.

3. Click on “Companies/LLPs in which a person is/was a  director/Designated Partner”

4. Click on Search Button in from of DIN/DPIN

5. Mention the Name, Father Name and Date of Birth and search.

6. MCA will display the  DIN No. allotted to you.

If one find more than one DIN. He should immediate took steps to surrender the duplicate DIN, preferably which are not in use as per process given below:

(Practical Example: One of my client received show cause notice from the Ministry for surrender of duplicate DIN. While I was preparing the surrender application and searching on MCA, I came to know that person have THREE DIN. Therefore it is advisable that one should even check on the MCA website whether he/she is occupying more than, even if he/she has not received any notice)


Section 153 read with rule 11 of The Companies (Appointment and qualification of Directors) Rule, 2014

(a) Holder of duplicate DIN shall make an application for surrender with Regional Director,

(b)  The application shall be made in form DIR-5.

(c)  The application  shall  be accompanied   with  a declaration  on  affidavit duly notarized that he has never been appointed as director in any company and the said DIN has never been used for filing of any document with any authority.

(d) The form DIR-S is physical form so form DIR-S will be attach in form RD-1 and filed with Regional Director.

Attachments of RD- 1:


+ Self attested copy of PAN Card

+ Self attested copy of Passport

+ Affidavit of surrender of DIN (Draft Attached) +  Board Resolution, if any (Draft Attached)

(e)    The Central Government will check E-records.


1. Name & Din of applicant

2. Reason for surrender of DIN

3. PAN

4. Passport No, if any.

5. Permanent resident address.

6. Phone No & Email ID

7. DSC of Person himself


1. Mention CIN of Company in which you are director from original DIN.

2. Purpose- Other

3. Purpose-Surrender of DIN

4. Detail of application

5. DSC of person himself! any director of Company.


  • The e-Form will be processed by the office of Regional Director (Non STP).
  • Fee as per Annexure A of RD-1 instruction kit.
  • A company can seek approval from Regional Director by filing application in e- Form RD-1 for certain mentioned purposes under Companies Act, 2013.
  • Corresponding form 24A as per Companies Act, 1956.
  • Please note that giving false statement or evidence is punishable under section 448 and 449

After surrender of DIN one should also apply to Company law Board (CLB) u/s 621A of Companies Act, 1956 for Compounding of Contravention of Section 266G of Companies Act, 1956)

Corresponding section of 621A is Section 441. Section 441 is still not applicable so application will be file as per Section 621A of Companies Act, 1956.

Which authority has Power to compound the offence?

  • The offence can be compounded by the Regional Director (RD) where the maximum amount of fine is upto Rs.50,000/-
  • By the Company Law Board (CLB) where the maximum amount of fine exceeds Rs.50,000/-.


Provisions and procedure for Compounding of offences, which are punishable under Companies Act, 1956 are stipulated under section 621A of the act.


The meaning of word compounding of offence is not defined under Companies Act, 1956. However if we try to analyze the section 621A.

we can draw one clear interpretation i.e. “It`s nothing but admission of guilt” In the process of compounding, the person may either Suo Moto or on receipt of notice of default/initiation of prosecution, admits the commission of default and make an application for compounding of the concern offence.

The defaulters agree to pay penalty which may be ordered by the Central Government. We will try to analyze the provisions and procedure of compounding.

Turning to the procedural part, we must understand the basic provisions relating to compounding and authorities to be approached for compounding of offence.

Important provisions pertaining to Compounding of Offences


Only those offences which are punishable with either Penalty or Penalty or imprisonment i.e. where it is at discretion of the court to impose penalty or imprisonment, are compoundable under section 621A.

In       other     words     offence     which      is      specifically      punishable      with imprisonment only or imprisonment plus fine is non-compoundable.


Penalty, which may be imposed under the order of compounding by the CLB or RD shall not exceed the maximum amount of fine which may be imposed for commission of that offence.

Means if the maximum fine for an offence is 10 times of basic fees, then the penalty shall not exceed the 10 times of basic fees.

The fine imposed under the order of Compounding is considered as additional fees and payable under section 611 (2) and not regarded as penalty. This has a significant implication for qualifications and disqualifications of Directorship.


>   Once the offence is compounded, no further prosecution shall be initiated either by registrar or shareholder or any other person in respect of that offence

> Once the offence is compounded, the intimation of compounding needs to be given to the Registrar within period of seven days from the day on which the offence is so compounded.


1. Preparation of Application for Compounding– A petition is required to be prepared in form no. 1 of Companies (court) Rules, 1959 . Following documents are required to be attached with petition:-

>   Board resolution authorizing director for filing petition.

> Affidavits duly notarized.

> Power of attorney / Memorandum of Appearance

>    Sometimes Copies of 3 years attested financial statements

> Copy of agreement (if any)

The complete set for petition is to be prepared in Duplicate:

> One for presenting in Company Law Board/Regional Director

> One as an acknowledgment and for our records

2. Filing of Form with ROC:

E-form No. GNL-1 is required to be filed with Registrar of Companies:

Attachments of GNL- 1:

  • Detailed application is required to be attached in all the cases of filing.
  • Affidavit duly notarized.
  • Power of Attorney/ Memorandum of Appearance
  • Copy of notice received from ROC or any other competent authority

3. Filing of Physical Copy of Application

After Submission of  E-form No. GNL-1 physical application can be made to the CLB or RD as the case may be for compounding of offence.

4. Order of Compounding-

Once the order of Compounding is passed, the same needs to be filed with the registrar of companies in e-form INC-28.

(Author – CS Divesh Goyal, ACS is a Company Secretary in Practice from Delhi and can be contacted at

Read Other Articles Written by CS Divesh Goyal

(Republished with amendments)

Author Bio

CS Divesh Goyal is Fellow Member of the Institute of Companies Secretaries and Practicing Company Secretary in Delhi and Steering Voice in the Corporate World. He is a competent professional having enrich post qualification experience of a decade with expertise in Corporate Law, FEMA, IBC, SEBI, View Full Profile

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  1. MANOJ PANJA says:

    Dear Sir,
    We are having a problem. On 17.11.2020 we have opened one Pvt. Ltd. Company with 3 nos of director.
    Two nos of directors paid the paid up capital as per the norms on 05.05.2021 but one director is denying to pay the paid up capital. For this we cannot complete the ekyc of our DIN numbers and also unable to comply the commencement of the business.
    Please advice how can we delisted the din of the person who did not paid the paid up capital.

    Thanking you,

    With Regards,
    Manoj Panja
    +91 8981046107

  2. Bal Kishan Sikaria says:

    A person was a Director in a company for three years and he resign from Directorship about 1 year. He want to surrender the DIN as he do not intend to become a director in any company in future. Kindly advise how to surrender.

  3. kiran kumar says:

    As above said to surrender multiple din one must fill the form DIR 5 and where due non update of DIR3 kyc now both DIN is been deactivated since its deactivated we will not be able to fill DIR5 form so please advise or let me know solution for surrendering for this type of case hope u understand the issue.

  4. Sankarankutty says:

    A person was a Director in a company for three months and he ceased tobe a Director. He want to surrender the DIN as he do not intend to become a director in any company in future. Kindly advise how to surrender.

  5. sk menon says:

    I am a holder of PAN based DIN and become a Director in one company and ceased to be a director of that company. The status of the company is “strike off”.
    I am a Director in other company with another DIN, which is not a PAN based DIN and still filing returns with that DIN. Which DIN I have to surrender and how. Kindly advise. Draft of the affidavit and Board Resolution may be sent to me.

  6. Ajay Kabra says:

    Dear Sir,

    My query is that Form RD-1 requires CIN of the Company so do we have to enter the CIN of the Company in which the Director has been appointed with the Original DIN (DIN 1st allotted and which is used). And kindly also share the format of Affidavit and Board Resolution. It would be of great help.

  7. Rahul agarwal says:

    on 12.01.2016 I have made payment for DIR3 which was unsuccessful but the amount was debited from bank.
    As it was showing as not paid and refund will be made within 48 hrs I again filled form DIN3 and it was a successful transaction and I have been allotted DIN
    On 13.01.2016 I received a mail from MCA confirming DIN approval which was showing as not paid due to transaction error on 12.01.2016.
    Now, I want to surrender one DIN.
    Kindly give your suggestion.

  8. Pragyesh Sngh says:

    Provisional DIN normally get Lapsed after certain period and such Lapsed DIN even cant be processed for any purpose, but surprisingly if you enter the same details on Form DIR 12, this given details of the Applicants with father name address and date of birth. when we try to collect the details of the DIN from pending DIN, it shows lapsed DIN.

    As per my view, Lapsed DIN don’t need any action and you may simply proceed without worries..

  9. Kajal Agrawal says:

    Hello Sir,

    If the director has two DIN, out of which one DIN has never be utilised and the other DIN which has been utilised in a company has filed form FTE for its closure last year. So, what would be the procedure for the same? Kindly tell me form RD-1 is required to be file or not?

  10. Pritesh says:

    Thank you for the information. It is very helpful. I would like to ask what is the recourse to be taken in case the director has never been appointed by any company / in the process of being appointed by a company which still under incorporation. Form RD-1 specifically requires, attachment of Board Resolution.

  11. CALP LLP says:

    Thank you for sharing the post. My question is whether it is necessary to attach a board resolution, if yes then of which company as an individual is a Director in number of Companies.

    Kindly inbox me the format of affidavit and board resolution.

  12. Rakesh Tak says:

    Dear Sir

    I agree with the process for cancellation of DIR …

    But the question is that

    if the holder of DIR is never appointed in any company
    than how we can file FORM RD-1 without having CIN number….

    kindly advise me how to proceed in such kind of situation…

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April 2024