Director KYC and filing of form DIR-3 KYC

The director of a company is responsible for managing the day-to-day affairs of the company. He is the one who gives directions to managers regarding any decision or policy change undertaken by the shareholders or promoters of the company. They may be promoters of the company, especially in the case of private companies, or an employee of the company. The Companies Act, 2013 also recognizes the position of director in the company and fixes the minimum and the maximum number of directors allowed in the company. A director other than the promoter may be appointed by the company by passing a resolution in the general meeting. Furthermore, in order to be appointed as director, an individual needs to obtain a Director Identification Number (DIN) after the approval from Central Government. File DIR-3 KYC Form.

What is a DIN?

Director Identification Number (DIN) is a unique 8-digit number allotted to a person who is appointed the director of a company. The validity for such a number is for a lifetime. He has to make an application in Form DIR-3 (in the case of an existing company) according to Sections 153 and 154 of the Companies Act, 2013. However, in the case of the formation of a new company, the application is made only through SPICe Form INC-32 at the time of its incorporation. Every DIN holder is required to do KYC. It is yearly compliance that has to be done by every DIN holder who is holding as of 31st march of every financial year.

Purpose of obtaining DIN by a director>

The basic purpose of obtaining DIN for the directors is to get themselves registered in the database of the government authorities so that they can identify themselves before signing a return, information, or application related to the company by mentioning their DIN underneath their signature.

What is Form DIR-3?

This form is required to be filed with regards to the provisions mentioned under Section 153 and Rule 9(1) which states that every individual who is to be appointed director of an existing company needs to apply for DIN through eForm DIR-3 to the Office of Regional Director (Northern region), Ministry of Corporate Affairs, Central Government along with prescribed fees as provided under Companies (Registration Office and Fees) Rules, 2014.

Documents needed are

• Photograph
• Proof of Identity (attested copy of passport in case of foreign national)
• Proof of residence
• PAN details
• A copy of the board resolution proposing his appointment as director in an existing company and specimen signature duly verified.

All such documents go through scanning and are submitted through electronic means only.

File DIR-3 KYC Form

The due date to file Director KYC is 30th September of the immediately next financial year. If a person has DIN on 31st March 2022 then form DIR-3 KYC will be submitted on or before 30th September 2022.

What is SPICe (Form INC-32)?

This form is an integrated form for allotment of DIN, reservation of name, and incorporation of a new company. This need to be submitted along with the documents containing details of the directors, subscribers, e-Memorandum of Understanding (Form INC-33), and e-Article of Association (Form INC-34). After the successful submission and scrutiny, the new company is allotted the Company Identification Number (CIN) and the director receives DIN. However, the maximum number of directors allowed to apply during incorporation has been limited to 3 directors using this form.

Documents needed by the applicant are:

• Proof of Identity (PoI)
• Proof of Address (PoA)

Furthermore, attaching a PAN card and Aadhar card is mandatory while filing SPICe.

Web Based Directors

Every DIN holder who has submitted their KYC in E Form DIR-3 KYC in any previous financial year may perform his annual KYC via the DIR-3 KYC web service. The fee of Rs.5000 shall be payable and KYC shall be done by filing form DIR- 3 KYC.

Form-Based Director

Every DIN holder shall have to submit DIN KYC by filing form DIR-3 KYC for the first time of holding a DIN. Furthermore, every director willing to change the KYC details provided in the previously filed form shall submit its KYC by filing form DIR 3 KYC.

Documents Needed

• Self-attested PAN Card (MANDATORY)
• Self-attested Aadhar Card (MANDATORY)
• Voter ID
• Driving License
• Self- Attested Passport (if having)
• Citizenship details
• Nationality details
• Date of birth
• Personal Mobile
• Personal Email Address
• Address proof

Penalty or Consequence for non-filing of DIR 3

If directors who are required to file the DIR-3 KYC form, do not file it by the due date i.e., the 30th day of September then the said DIN shall be marked as ‘Deactivated due to non-filing of DIR-3 KYC’ and the status shall remain Deactivated until KYC is done with a fee of Rs.5000.

Conclusion

The process of obtaining DIN from the Central government has been made easier after the Companies Act, of 2013 by introducing e-forms for which applications can be made only through electronic mode. This has also resulted in an increase in transparency and sped up the whole process. Moreover, the applicants can keep a track of their application through the MCA website and remove any discrepancy indicated by the office of the regional director.