KYC of Director
Ensure the timely and accurate compliance of Director KYC with our expert assistance using Form DIR-3 KYC, ensuring your business remains fully adherent and avoids any potential penalties
* Excluding Govt. Fees
Meaning
Any person wishing to be a director or is a director of an existing company is given a Director Identification Number (DIN). DIN is a unique identification number assigned to abovementioned directors. Initially, a director had to apply for DIN by filing form DIR-3, only once, which has lifetime validity. Gradually, with amendment, the Ministry of Corporate Affairs (MCA) introduced Form DIR-3 KYC in 2018. Now, all the directors having DIN are required to submit their KYC (Know Your Customer) details annually. Its aim is to keep a database of directors up-to-date and to identify any directors who are disqualified or not in compliance with regulations.
Issues
Under the Companies Act of 2013, the following are some significant issues involving Director Know-Your-Customer checks:
- Applicability: The Director KYC form viz Form DIR-3 KYCmust be submitted by any individual who has been issued a Director Identification Number (DIN) on or before the 31st of March of a given Financial Year.
- Deadline for Filing: The Director KYC form is required to be filed annually by September 30 of each corresponding financial year.
- Form and Procedure: In order to verify their identity, directors are required to submit Form DIR-3 KYC to the Ministry of Corporate Affair through its website. The form contains specifics such as the Director Identification Number (DIN), personal information, a permanent address, a current address, contact information, a PAN (Permanent Account Number), a passport number (if applicable) and other information that is pertinent.
- Attachments: Directors need to include a self-attested copy of their permanent address proof, current address proof, PAN card, Aadhaar card and any other optional document. .
- Default in filing: In the event that the Director KYC form is not submitted within the allotted time frame, the MCA may place a “Deactivated” status on the director’s DIN. This is one of the consequences of failing to comply with the regulations. After the DIN has been flagged as inactive, the director will be unable to use it for any company-related actions until the KYC form has been submitted and the DIN has been reactivated.
- Directors must meet the Director KYC requirements to keep their Director Identification Numbers (DINs) active and avoid potential issues related to their roles in Indian companies. Compliance with the KYC process ensures the validity and accuracy of director information, thus maintaining corporate governance standards and preventing disqualification or penalties.
Important Factors
Following are the most important factors for compliance
- Filing on an Annual Basis: Directors are obligated to submit the Director KYC form on an annual basis. The 30th of September of the corresponding financial year is the date by which the filing must be completed. It is essential to maintain timely compliance in order to avoid incurring any penalties or having one’s Director Identification Number (DIN) deactivated.
- Online Filing: The MCA21 portal (www.mca.gov.in) is used to submit the Director KYC form in an electronic format. The process of completing an application online requires submitting the needed details and uploading the appropriate documents in accordance with the instructions provided on the form.
- Verification and Certification: To successfully pass verification, the Director KYC form must include a digital signature from the director using a valid Digital Signature Certificate (DSC). This DSC plays a crucial role in authenticating the director’s identity and ensuring the integrity of the submitted information. Compliance with these requirements is essential to maintain the active status of Director Identification Numbers (DINs).
- Required Information: Form DIR-3 KYC, also known as the Director Know Your Customer Form, is responsible for gathering a variety of information and documents that pertain to the director. Among the various pieces of information that are generally required are the following:
- Director Identification Number
- Full Name
- Date and Time of Birth
- Name of the Father
- Nationality
- Address (Permanent and Current),
- Contact Information (Email and Mobile Number), and Other Details
- Permanent Account Number (also known as PAN)
- Aadhaar Number (UID)
- Number of the Passport (if it is applicable)
What is included in this
FAQs
Form DIR-3 KYC (Director KYC Form)must be submitted by any individual who has been provided with a Director Identification Number (DIN) on or before the 31st of March of a given financial year.
Form DIR-3 KYC (Director KYC Form) is to be submitted every year by the 30th of September in the respective financial year.
The Director Identification Number (DIN) of a director may be marked as “Deactivated” by the Ministry of Corporate Affairs if the director fails to submit Form DIR-3 KYC by the time allotted. The DIN will continue to be inactive until the Form DIR-3 KYC (Director KYC Form)is submitted, at which point it will be enabled again.
No, the Director KYC form, also known as Form DIR-3 KYC, must be submitted digitally through the MCA21 portal, which can be accessed at www.mca.gov.in through which documents can be filed online.
No, after the Form DIR-3 KYC (Director KYC Form) has been filed, it is not possible to make any changes to it or alter it in any way. For this reason, it is essential to conduct a thorough examination of the information before submitting it.
The answer is yes; the Form DIR-3 KYC (Director KYC Form)needs to have a valid Digital Signature Certificate (DSC) attached to it in order to be considered complete.
The Form DIR-3 KYC (Director KYC Form) process for directors is applicable to both Indian and foreign directors who have been given a Director Identification Number (DIN).
No fee is required if Form DIR-3 KYC is submitted within the specified deadline of the financial year. However, if submitted after the deadline, a fee of Rs. 5,000/- (Rupees Five Thousand Only) will be applicable for DIN status ‘Deactivated due to non-filing of DIR-3 KYC’
Yes, the Director Identification Number (DIN) can be reinstated by the Ministry of Corporate Affairs upon submission of the Form DIR-3 KYC (Director KYC Form) subsequent to DIN deactivation, along with payment of a penalty of Rs. 5,000/-.
Any DIN holder who has already submitted eForm DIR-3 KYC in any of the previous financial years and who does not require update in any of his KYC details as submitted, may perform his annual KYC by accessing DIR-3 KYC web service and it shall be deemed to be compliance of the provisions of Rule 12Aof the Companies (Appointment and Qualification of Directors) Rules, 2014 for the said financial year.
