Allotment of Director Identification Number (DIN)
Legal Delight ensures efficient Director Identification Number (DIN) allotment with precise document preparation, expert form filing and seamless coordination with the Ministry of Corporate Affairs.
* Excluding Govt. Fees
Overview
Under the Companies Act 2013 in India, the allocation of Director Identification Number (DIN) is a formal process through which individuals are assigned a unique identifier. This DIN serves as a crucial tool for tracking and identifying individuals holding directorship positions across various companies. The allocation of DIN involves verifying the identity and credentials of directors to ensure transparency and accountability in corporate governance. This unique number is essential for regulatory compliance and helps in preventing instances of fraud or mismanagement by providing a clear record of directorial appointments and responsibilities.
Key details regarding the Allocation of DIN
- Application for Director Identification Number (DIN): Individuals who seek to become directors of a company are required to submit an application for a DIN in order to fulfil the requirements. The application must adhere to the format that is specified by the Ministry of Corporate Affairs (MCA), which receives it.
- SPICe+ or DIR-3: Depending on the specifics of the situation, the application for a DIN can be submitted using either the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form or the DIR-3 form. The SPICe+ form is the one that is commonly used to incorporate new companies, while the DIR-3 form is the one that is used by individuals who are not starting a new business but still want to receive a DIN.
- Documentation: In order to submit an application for a DIN, applicants are required to provide various supporting documents, including pictures of themselves, evidence of identity, and proof of address. It is possible that the particular documents necessary will change depending on the status of the individual and the kind of application that is being submitted.
- Verification: The MCA will undertake background checks on the applicant and review the information that was supplied in the DIN application to ensure that it is accurate. The verification process ensures that the individuals applying for DIN are authentic and meet the eligibility criteria for obtaining the DIN. This helps maintain the integrity of the director identification system by confirming the identity and qualifications of applicants before assigning them a DIN.
- Issuance of Unique Director Identification Number (DIN): After the MCA has reviewed and accepted the individual’s application, it will issue that person a DIN that is completely unique. The DIN is intended to be a permanent identifier for the individual, and it will continue to be associated with them across all of their directorship roles.
- Communication of Director Identification Number (DIN): The MCA will send the applicant either an official letter or an email in order to transmit the DIN that has been assigned to them. The applicant needs to make a note of the DIN that will be allocated to them for future reference.
Benefits
- Unique Identification System: Director Identification Number (DIN) assigns a one-of-a-kind identifying number to each person who holds the position of director in one or more companies as part of its unique identification system. It helps separate directors and minimises confusion or duplication of identity among director candidates and directors.
- Regulatory Compliances: Receiving a DIN ensures that a company is in accordance with the Companies Act of 2013, which states that persons who serve on the board of directors are required to obtain a DIN. Both the integrity of the corporate governance structure and compliance with the various legal and regulatory standards are helped to be maintained by this practise.
- Increase in Transparency and Accountability: Transparency and accountability in corporate dealings are both increased by DIN. It makes it possible for various stakeholders, such as shareholders, regulatory authorities, and the general public, to quickly identify and keep tabs on the directorship positions held by individuals across a variety of companies.
- Monitoring Directorships: The Director Identification Number (DIN) gives regulatory bodies like the Ministry of Corporate Affairs the ability to keep an eye on the directorship positions that are held by individuals. It assists in the detection of possible conflicts of interest, the monitoring of directorship limits, and the prevention of any misuse or abuse of corporate positions.
- Linked to a Central Database: The Ministry of Corporate Affairs is in charge of the centralised database that DIN is connected to. It makes effective data administration and retrieval possible, ensuring that correct and up-to-date information regarding directors is always available.
- Communication Made Easier: DIN was designed to make it easier for directors to communicate with regulatory bodies. When directors communicate with the Ministry of Corporate Affairs and other key stakeholders, it provides them with a one-of-a-kind identifier that may be used to identify themselves.
- Effective Corporate Governance: The Director Identification Number (DIN) promotes robust corporate governance by verifying that nominated directors meet eligibility criteria and undergo due diligence. This ensures accountability and professionalism among directors, enhancing the board’s commitment to integrity and ethical conduct.
- Directorship Change: Director Identification Number (DIN) simplifies the management of directorship changes, such as appointments, resignations, and retirements, by optimizing the process. These transitions can happen at any time, and DIN facilitates efficient transfer and tracking of directorship roles, ensuring seamless transitions and timely updates.
Process
- Acquire a Digital Signature Certificate (also known as a DSC): The first thing you need to do is acquire a Digital Signature Certificate. In order to sign the electronic documents that must be sent as part of the DIN application procedure, you will need a DSC. It is available for acquisition through the relevant authorised certifying agencies.
- Submit a SPICe+ or DIR-3 Form: Determine whether you are required to file the DIR-3 form or the SPICe+ form (Simplified Proforma for Incorporating Company Electronically Plus). SPICe+ is utilised in the process of incorporating new businesses, whereas DIR-3 is utilised by individuals who do not want to incorporate a new business but require a DIN. Complete the SPICe+ or DIR-3 form with the necessary facts, including your personal information (name, date of birth, contact information, educational qualifications, and any other pertinent information) and the information that is requested.
- Include Supporting papers: Attach the appropriate supporting papers, such as proof of identity (for example, a PAN card, passport, or Aadhaar card), proof of address (for example, a utility bill, bank statement, or passport), and recent passport sized photographs. Make sure the documents are in the format that has been recommended for them and that they meet all of the standards.
- Verification to be obtained: A practising Chartered Accountant, Company Secretary, or Cost Accountant must verify the form and any supporting documentation before it may be submitted. They will check the information that was supplied in the form to ensure that it is accurate.
- Track the Status of Your Application through the MCA Portal: You can check the current status of your DIN application. Following the completion of the application’s processing and receipt of approval, the DIN will be assigned.
- Receive a Letter of DIN Allotment: Once the application has been reviewed and approved, the DIN will be assigned, and the applicant will receive a Letter of DIN Allotment. This letter will include the given DIN, in addition to any other pertinent information.
What is included in this
FAQs
Director Identification Number is what is meant by the acronym DIN. It is a one-of-a-kind identifying number that is given to individuals who serve in the capacity of directors in businesses that are registered in accordance with the businesses Act 2013.
Any individual who intends to be appointed as a director in a company that is registered under the Companies Act 2013 is obliged to obtain a Director Identification Number (DIN). This is because the DIN is a government-issued identification number.
Depending on the specifics of your situation, you can make an application for a DIN by completing either the DIR-3 form or the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form. The application must be submitted digitally on the website provided by the Ministry of Corporate Affairs (MCA). The SPICe+ form is the one that is commonly used to incorporate new companies, while the DIR-3 form is the one that is used by individuals who are not starting a new business but still want to receive a DIN.
You will need to provide proof of identity (like a PAN card, a passport, or an Aadhaar card), proof of address (such a utility bill, a bank statement, or a passport), and current pictures that are passport-sized. These papers are required in order to obtain a DIN. It is possible that the specific documents will change depending on the circumstances of your case.
Yes, there is a charge that is statutorily required for DIN allocation. The amount of the cost is determined by the type of form that is being submitted as well as the applicant’s category (person, foreign national, etc.). On the MCA website, you may locate the most recent version of the fee schedule.
The amount of time necessary to assign a DIN is not always constant. Assuming that all of the information and papers have been provided in the correct format and are accurate, the DIN is typically assigned anywhere from a few days to a couple of weeks after the application has been submitted.
There is no limit to the number of businesses that can share a DIN. The DIN is associated with the particular director, and it is maintained consistently across all directorship positions held by that director.
The answer is yes; a DIN can be obtained by non-Indian citizens who seek to work for Indian businesses as directors. They are required to hand in the appropriate form, as well as the necessary documentation, in accordance with the directions that were provided by the MCA.
The Companies Act 2013 outlines the particular conditions under which a DIN may be revoked or cancelled, and the answer is that it is possible to do so. Submitting the required application and acting in accordance with the established protocols are both required steps in the process of cancelling or giving up a licence.
No, a DIN is only mandatory for individuals who are directors of a company in India. Investors, shareholders, or other company officials without directorial positions do not require a DIN.
