In 2018, the Ministry of Corporate Affairs introduced a new rule to the Companies (Appointment and Qualification of Directors) Rules, 2014. According to this rule, every individual who holds DIN (Director Identification Number) has to file a new form DIR-3 KYC with MCA. This initiative aims to bring more transparency and identifying the shell companies and persons who are holding more than one DIN. 

The MCA came up with many clarifications and amendments in the rule within a year from the date of introduction of the rule. Here are the latest provisions applicable to form DIR-3 KYC.

 Who is required to file DIR-3 KYC?

The form KYC is for individuals and not for companies. Hence, every individual who holds DIN as on 31st March of a financial year (whether the person is a director or designated partner in company or LLP) has to file the form. It is also applicable to individuals who are not appointed as a director or designated partner in any company or LLP but who have the DIN.     

As per the recent notification, the filing of the form is divided into two categories:

First time filing

For individuals, who have been newly allotted DIN or a person already holding DIN and has not filed DIR-3 KYC. Such persons have to file form DIR-3 KYC available of MCA portal.

Subsequent filing

A DIN holder who has already filed the form DIR-3 KYC in the previous year has to file a web-form DIR-3 KYC-WEB through the web service available on MCA portal for every subsequent year.   

As notified, all the DIN holders are now required to update KYC annually with MCA. Further, if the existing DIN holders want to update the personal mobile number or email id then they are required to file form DIR-3 KYC for subsequent filing. Otherwise, they have to file web-form DIR-3 KYC-WEB.  

Due date

Every DIN holder shall file the form DIR-3 KYC or DIR-3 KYC-web on or before 30th September of the immediate next financial year.

Hence, for F.Y 2018-2019, the due date will be 30th September 2019.  

Consequences

For every financial year if the form is not filed within the due date then the MCA will charge late filing fees of Rs. 5000/-.

Moreover, the DIN of such an individual will be deactivated due to the non-filing of the form. Hence, one cannot file any other form.

Documents required

The attachments to the form are as under

  • PAN (mandatory for Indian nationals)
  • Permanent address proof (Passport/Election card/Driving license/Aadhaar card/Electricity bill/Telephone bill)
  • Present address proof if the present address is other than the permanent address
  • Aadhaar and passport are mandatory if a person has Aadhaar card or passport
  • A unique personal mobile number and e-mail id which will be verified through One Time Password (OTP) in the e-form

DIN holder has to verify the form by affixing the digital signature. Also a practicing professional has to certify the form with his/her digital signature.

There is no need of any document for filing DIR-3 KYC-web.

Conclusion

The filing of form DIR-3 KYC for every DIN holder annually is a must. An individual must file KYC details through form DIR-3 KYC for the first time. And later on, if there are no changes in details then he/she has to file DIR-3 KYC-web only through web service on MCA portal.

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