Ministry of Corporate Affairs, as part of its continued efforts to streamline policies and processes, had mandated a compliance requirement for all DIN holders to file KYC form starting 10th July, 2018. The compliance requirement had no government fees to be paid and was mandated for any Indian or foreign national having a valid Directors Identification Number (DIN) in India. DINs are issued to individuals who are appointed as a director in any company or a designated partner in any LLP.
Under previous DIN issuing process, it was rather common for single person to hold multiple DINs. KYC process aimed to resolve such issues, and establish transparency and accountability. By the end of extended deadline till 15th September, 2018; a large share of already issued DINs were not complied with KYC. An estimated count of 21 Lakh DIN holders out of total 33 Lakh active directors remained under non-compliance. It is noteworthy, that possible heavy rush on the MCA portal had caused greater technical difficulties for the professionals to file DIR-3 KYC Documents for their clients, and it was visibly discussed within multiple online forums and social media across the nation.
MCA started deactivating DINs as a consequence of non-compliance, after 15th September 2018. However, considering the larger share that remains out of compliance and difficulties faced in filing, Ministry of Corporate Affairs (MCA) has, in its latest notification dated 20th September 2018, agreed to accept filing at reduced fees of Rs 500. Any person holding a valid DIN is mandated to comply with the KYC Requirement.
Reduced late filing fees are only applicable till 5th October 2018. Post that, a late fee of Rs 5,000 will apply to reactivate DIN.
Consequence of Non-compliance:
- Penalty of Rs 5,000 applicable post 5th October 2018.
- Deactivation of DIN with the reason of non-filing of KYC (already applied if out of compliance), which invalidates any action by the Director/ Partner by using the DIN
- Inability to further be appointed as Director or Designated Partner in a Company or LLP
How to Comply:
- DIR3 KYC needs to be filed with professional (CA/CS) certificate
- For Professionals filing for their clients, please use downloadable form on MCA portal
- LegalWiz.in aims to keep their clients compliant at all times. Feel free to reach out to us at 1800 313 4151 or click here for filing DIR-3 KYC .
Documents and Information Required:
- Citizenship, Nationality and Residential Status
- The name and other details must be verified with Income Tax PAN
- Aadhaar number (mandatory, if allotted)
- Passport Number (mandatory for the foreign nationals)
- Voter’s Identity Card Number
- Driving License Number
- The unique mobile number and e-mail id would also be verified through One Time Password (OTP) while filing the e-form
LegalWiz.in is committed to spreadin awareness to enable legal compliance. We aim make it convenient for small and medium size businesses to receive professional services at an affordable cost. We take care of your compliance worries, and let you focus on growing your business.