The DIR-3 KYC (Know Your Customer) is a form mandated by the Ministry of Corporate Affairs (MCA) for all individuals holding a Director Identification Number (DIN) to ensure that their details are updated and verified. This process helps in maintaining accurate and current records of directors in the MCA database, enhancing the transparency and reliability of the corporate governance framework in India.
Key Aspects of DIR-3 KYC
| Aspect | Description |
| Objective | To update and verify the details of directors holding a DIN. |
| Applicability | Every individual who has been allotted a DIN as on or before March 31 of a financial year. |
| Due Date | Annual submission by September 30 of the following financial year. |
| Form | DIR-3 KYC |
| Mode of Filing | Online through the MCA21 portal. |
| Penalties for Non-Compliance | Deactivation of DIN and late fee of ₹5,000 for reactivation. |
Detailed Requirements
1. Applicability:
-
- Any individual holding a DIN as on March 31 of a financial year must file the DIR-3 KYC form.
- This includes directors of companies, individuals holding DIN for any other purposes such as designated partners in LLPs.
2. Information Required:
-
- Personal details: Name, Father’s Name, Date of Birth, Nationality, and Gender.
- Contact details: Personal Mobile Number and Email ID.
- Permanent and Present Address.
- Digital Signature Certificate (DSC) of the individual filing the form.
- Proof of Identity (e.g., PAN for Indian nationals, Passport for foreign nationals).
- Proof of Address (e.g., Aadhar, Voter ID, Passport, or Driver’s License for Indian nationals, Passport for foreign nationals).
3. Verification:
-
- The form must be certified by a practicing Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant.
- Verification of personal mobile number and email ID through OTP (One Time Password) is mandatory.
4. Penalties for Non-Compliance:
-
- If the DIR-3 KYC form is not filed by the due date, the DIN will be deactivated.
- A deactivated DIN can be reactivated by filing the DIR-3 KYC form along with a late fee of ₹5,000.
Recent Updates on DIR-3 KYC
The MCA has been proactive in updating the compliance requirements to make the process more streamlined. Recent changes include:
- Introduction of web-based DIR-3 KYC for those who have already filed the form in previous years.
- Continuous emphasis on the timely update of contact details to avoid discrepancies.
Conclusion
DIR-3 KYC is an essential compliance requirement under the Companies Act, 2013, ensuring that the details of all directors are accurately maintained in the MCA database. Timely and accurate filing of DIR-3 KYC helps in enhancing corporate governance and transparency, and avoiding penalties. It is crucial for all directors and individuals holding DIN to adhere to this annual compliance to ensure their DIN remains active and valid.
*****
Disclaimer: This article provides general information existing at the time of preparation and we take no responsibility to update it with the subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement
Author Bio
