A unique identification number called a director identification number (DIN) is given to the person that desires to become a director of a company. It is also given to a person who is already a director of any company. The application for a DIN is submitted from DIR-3, which was originally a one-time task to be executed by the director.
Nevertheless, the Ministry of Corporate Affairs (MCA) has decided that all directors with a DIN are required to submit their KYC information annually through e-Form DIR-3 KYC as part of updating their registers.
Did you know that if the director fails to file the DIR-3 within the due date then they have to pay a delay fine of ₹ 5,000 as a penalty?
Who Can File e-Form DIR 3?
As per the clarifications made by MCA, directors that fulfil the following criteria should provide their KYC records to the MCA. As consistent with the notification issued, any director whose Director Identification Number (DIN) becomes authorised by the 31st of March 2018 ought to provide their KYC records to the department. Additionally, rejected directors must go through the same process.
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Every director whose DIN has been approved and who has been provided with the DIN through the end of the fiscal year should submit form DIR-3 KYC by September 30 of the following fiscal year.
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For instance, directors who have been given a Director Partner Identification Number (DPIN) by March 31, 2023, or DIN holders, have to complete the e-Form DIR-3 KYC by September 30, 2023.
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Points to Check while Submitting the e-Form DIR-3 KYC
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A unique personal mobile number and an email address for each director ought to be provided while submitting the DIR-3 KYC form. The phone number and email address will be validated after the OTP (one-time password) is generated.
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As a second verification, the director must use their digital signature when submitting this form.
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As a third test, a practising Chartered Accountant, Company Secretary, or Cost and Management Accountant should certify the e-Form to guarantee that correct and complete information is provided.
Documents Required to File DIR 3 KYC Form
There are a few documents required to file DIR 3 KYC Form like documents supporting information about citizenship, gender, and birthdate. Also, you need other important documents that can be as follows:-
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Permanent Account Number (PAN).
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Proof of a residential address.
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Voter identification card.
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Passport (compulsory when DIN possessor is of foreign nationality).
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Aadhaar card.
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Driving license.
In addition to the items listed above, you will also need the following items:
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Digital signature of the person submitting the form (applicant).
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The signatures of practising professionals including CA, CS, or cost accountants attest to the validity of the aforementioned files. In the case of foreign nationals, documents must be attested by the designated authorities.
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The applicant has to submit a declaration that has been witnessed by licensed professionals.
Type of DIR-3 KYC Filing
Via e-Form and web services, the DIN holder can submit and amend their DIR-3 KYC data for the most recent fiscal year. The following are two examples of these types and details:
Updated KYC Details through e-Form DIR-3
The DIN holder who has previously filed the e-Form DIR-3 KYC in preceding years and who no longer needs to renew their KYC records but instead can make annual KYC updates is eligible to apply for the web services.
DIR-3 KYC Update through Web Services
When filing KYC information for the first time with the MCA, DIN holders who no longer have access to web services have to use the e-Form DIR-3 KYC. DIN holders who want to amend their KYC must also do so using the e-Form DIR-3 KYC. The web services for updating DIR-3 KYC are not accessible.
Due Date and Penalties for Failing to Submit DIR 3 KYC Form
The department will label a director's DIN as "Deactivated due to Non-filing of DIR-3 KYC". If they fail to put up the e-Form by the required dates (or extended due dates) on the MCA 21 portal. In these circumstances, the director may reactivate the DIN by submitting the omitted e-Form DIR-3 KYC and paying an overdue fee of ₹5,000.
Process for Submitting DIR 3 KYC Form
Follow the steps below in order to submit the DIR 3 KYC form.
Step 1: Download the Form.
Downloading the DIR-3 KYC form from the MCA website is the first and most important step.
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Step 2: Enter the DIN Information.
Directors must complete the DIN in the KYC form with an "Approved" status. For directors who fail to document the DIR-3 KYC Forms, the DIN becomes deactivated. However, directors may fill out the form beyond the cut-off date by paying a late filing fee.
Step 3: Fill Out the DIR-3 KYC Form with the Required Information
The candidate must include both their first and last name as well as the first and last name of their father
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Nationality: A director will have to recognise his/her country of origin. Directors having a different nationality are required to declare the nationality that is written on their passports.
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Age Declaration: The format for the date of birth (DOB) of the director in the DIR-3 KYC Form is DD/MM/YYYY. Age declaration is required because applicants below the age of 18 are not permitted to submit this application and hence, cannot become directors.
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Address: A director is required to enter their permanent residential address. Also, he is expected to attach documentation of that address. When the state is NA, a foreign pin code can only be entered. In the event that the person's permanent address differs from their current residence address, the person must also provide that address.
Step 4: PAN Verification
Verification of the Permanent Account Number (PAN) is required to file a DIR-3 KYC. The director should first register the PAN before selecting the "Verify income-tax PAN" button. The system will then use the PAN card number and will verify the director's information.
Step 5: Modify Contact Information and Confirm OTP
An OTP is used to verify the director's mobile number and email address when they update their contact information. When a director provides the above-stated contact data, he must generate an OTP to verify the information provided by clicking the button labelled "Generate OTP" after submitting the information. OTPs are sent to cellphone and email accounts separately.
Step 6: e-Form Authentication
Directors will have to ensure the e-form is validated. This means that it has been digitally signed by a Company Secretary or Chartered Accountant who is currently associated with their line of work. An important step that cannot be skipped is providing the practising professional's information along with their digital signature.
Step 7: Generation of SRN
After the e-Form, DIR-3 KYC has been properly filed, SRN (Service Request Number) is generated. The user is given this SRN for use in future communications with the MCA.
Step 8: Email Correspondence
An email confirmation of receipt of the DIR-3 KYC form will be sent to the applicant's email ID. Also, the required attested attachments must be submitted along with the form. An applicant must upload and certify the following documents.
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Evidence of a Permanent Address
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Conditional Attachment
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Evidence of current address
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Aadhaar Card Copies
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Copy of Passport
Conclusion
Every person who is willing to be appointed as a director of a company will have to file an electronic application with the Central Government in Form No. DIR-3. They should also pay the fees along with the form specified in the Companies (Registration Offices and Fees) Rules, 2014, for obtaining the Director Identification Number (DIN).
Also, every director who has received a DIN on or before the end of the fiscal year and whose DIN is in authorized status is mandated to submit Form DIR-3 KYC by September 30 of the following fiscal year.
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