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Rewati Krishnan
Setindiabiz Team |LinkedIn profileUpdated : October 25, 2024

MCA Sets a Deadline for DIR-3 KYC, DIR-3 WEB KYC

Overview : The directors of companies who have been allotted DIN are required to file their KYC every year through DIR 3 KYC Form to the Ministry of Corporate Affairs (MCA). It’s a mandatory compliance to follow to keep DIN activated and ensure eligibility to become or stay as a director in a company. Failing to file this director KYC can lead to deactivation of DIN. Get comprehensive understanding about director KYC form with this blog.

A Director Identification Number (DIN) is a unique number assigned to those individuals who wish to become a director or existing directors in corporations. DIN can be obtained by filling out and submitting eForm DIR-3; and it is generally a one-time process. However, due to an amendment to MCA’s register, all directors with DIN must submit their KYC details in e-Form DIR 3 KYC every year.

What is the DIR-3 KYC & the DIR-3 WEB KYC form?

The DIR-3 KYC form is submitted to the Ministry of Corporate Affairs, for updating the KYC details of the directors. Every director who has received a Director Identification Number or DIN is required to file the DIR 3 KYC form. The sole purpose of filing the form is to maintain the updated records of the directors of companies incorporated in India.

Now, before moving forward, let us first discuss what DIN actually is?

DIN is a unique 8 digit number allotted to an individual who aspires to become a Director in a company. In other words, no individual can be appointed as a director unless he possesses a Director identification number. This unique number is obtained by filling out eForm DIR-3 and submitting it to the Ministry of Corporate Affairs, along with documents like the PAN card, Identity proof, and address proof of the applicant. Once obtained, DIN has a lifetime validity, with the requirement of regularly renewing it.

Now that you know what DIN is?.... Let us understand the legalities of filing DIR 3 KYC

For Financial year 2018-19, a director who has been allotted DIN on or before 31st March 2018 and the status of such a DIN is ‘Approved’, needs to file form DIR-3 KYC, to update his KYC details, in the official records of the Ministry of Corporate Affairs, on or before 5th October 2018.

From Financial year 2019-20 onwards, every Director who has been allotted DIN on or before the end of the financial year, and whose DIN status is ‘Approved’, would be mandatorily required to file form DIR-3 KYC update of the current financial year, on or before 30th September of the immediately succeeding financial year.

Every director who has been allotted a DIN on or before the end of the financial year and whose DIN has been in ‘Approved’ status are required to file form DIR-3 KYC before 30th September of the following financial year. If the DIR 3 KYC has not been filed before the expiry of the due dates, then after the expiry of the due date, the records will mark all non-compliant DINs as ‘Deactivated due to non-filing of DIR-3 KYC”.

Who Should Submit Form DIR-3 KYC?

As mentioned earlier, DIR 3 KYC form must be filed by directors having their DIN status Approved. Recently, the Ministry of Corporate Affairs (MCA) announcement stated that the Directors of all Indian Companies have to update their KYC information, by submitting form DIR 3 KYC, if they meet the following criteria:

  • Their Director Identification Number (DIN) was assigned to them by 31 March, 2018 or later.
  • The status of allotment of DIN shows as “Approved”

Note : It should be noted that disqualified directors are also required to update their KYC and file form DIR 3 KYC on the prescribed date.

What Documents Do You Need to Fill Out This Form?

DIR 3 KYC form must be submitted along with documents and details like the applicant’s;

  • Nationality Details
  • Details of Citizenship
  • Date of Birth
  • Gender
  • Educational and Professional qualifications
  • PAN Card
  • Identity Proof
  • Email ID
  • Mobile Number
  • Residential Address Proof

The applicant can provide any one document from among his Aadhar card, Voter ID, Driving License, or Passport. If the applicant is a foreign national, he can only give his passport as proof of his identity. As far as the address proof of the applicant is concerned, he can submit utility bills like water bill, electricity bill, postpaid telephone bill, or gas bill, not older than 2 months from the date on which it is being submitted.

In addition to the above-mentioned documents, the applicant must also have a Digital Signature Certificate to sign the web-based DIR 3 KYC form. The form and the documents submitted with the form must also be verified and certified by independently practicing CA, CS, and Cost Accountants. For foreign nationals, an attestation by the specific authorized person is necessary.

DIR-3 KYC Form Fees

No fee is required to be paid, if Form DIR-3 KYC of the concerned financial year, is filed within the prescribed due date. However, if filed after the due date, a late fee of ₹5000 is payable for revoking the DIN status from “Deactivated” to “Activated”. Therefore, it’s always a wise decision to file this kyc form before its prescribed due date.

Conclusion

Filing DIR 3 KYC for each director allotted DIN with 'Approved' status is necessary. It is one of the crucial annual compliances for company directors to keep their credentials updated and prevent their DIN from getting deactivated. This blog would have provided you with comprehensive information about the DIR 3 KYC web form, helping directors ensure compliance with annual KYC filing.