Directors KYC - A unique decision by Indian Government

Introduction

Much awaited form for Directors KYC – DIR 3 KYC has been notified vide Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2018 dated 5th July 2018 (effective from 10th July, 2018).

Due to lack of database of every individual having approved DIN, MCA is conducting KYC of all Directors of all companies annually through a new e-form viz. DIR-3 KYC for updating its registry. Accordingly, every Director who has been allotted DIN on or before 31^st March, 2018 and whose DIN is in ‘Approved’ status, would be mandatorily required to file form DIR-3 KYC on or before 31^st August, 2018 and from next year onwards, every year on or before 30^th April.

After expiry of the due date by which the KYC form is to be filed, the MCA21 system will mark all approved DINs (allotted on or before 31^st March, 2018) against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason as ‘Non filing of DIR-3 KYC’.

Before due date the form fees is Nil but after the due date filing of DIR-3 KYC in respect of such deactivated DINs shall be allowed upon payment of Rs. 5000/- fee.

e-Form DIR-3-KYC is required to be filed pursuant to Rule 12A and Rule 11(2) and (3) of The Companies (Appointment and Qualification of Directors) Rules, 2014:

Rule 11(2): The Central Government or Regional Director (Northern Region), or any officer authorized by the Central Government or Regional Director (Northern Region) shall, deactivate the Director Identification Number (DIN), of an individual who does not intimate his particulars in e-form DIR-3-KYC within stipulated time in accordance with Rule 12A.

Rule 11(3): The de-activated DIN shall be re-activated only after e-form DIR-3-KYC is filed along with fee as prescribed under Companies (Registration Offices and Fees) Rules, 2014.

Rule 12A:- Every individual who has been allotted a Director Identification Number (DIN) as on 31st March of a financial year as per these rules shall submit e-form DIR-3-KYC to the Central Government on or before 30th April of immediate next financial year.

Provided that every individual who has already been allotted a Director Identification Number (DIN) as at 31st March, 2018, shall submit e-form DIR-3 KYC on or before 31st August, 2018.”

Unique details required for KYC:

1.       If director have valid passport then Passport number is mandatory.

2.       While filing the form, the Unique Personal Mobile Number and Personal Email ID would have to be mandatorily indicated and would be duly verified by One Time Password (OTP).

Please note that send OTP button will be enabled only after successful Pre-scrutiny of the form. Separate OTPs will be sent to mobile number and email ID. Further, the OTP can be successfully sent to the mobile number and email ID against one form, for a maximum of 10 times in one day and twice in a span of 30 minutes. For further chances, you may download a fresh form on the same day or try next day.

Attachments:

1.       Proof of Permanent Address i.e. Aadhar, Voter ID, Passport, License, Utility Bill, Bank Statement, etc. Utility Bill or Bank Statement should not be older than 2 months from the date of filing the form.

2.       Copy of Aadhar card – mandatory for citizen of India

3.       Copy of Passport – mandatory if director have valid passport. In case of foreign National, it is mandatory attachment and the Passport shall be apostilled and attested by concerned authority.

4.       Proof of present address – if Present address is different from Permanent address then mandatory to attach proof of present address i.e. Aadhar, Voter ID, Passport, License, Utility Bill, Bank Statement, etc. Utility Bill or Bank Statement should not be older than 2 months from the date of filing the form.

5.       Copy of PAN card

Please note that above attachments shall be attested by the professional who is certifying the form.

DSC related points:

Form should be filed by every director using his own DSC (Class-2) and should be duly certified by a practicing professional (CA/CS/CWA).

While filing DIR-3 KYC form, all stakeholders are requested to use PAN based DSC. In case of Indian Nationals, PAN mentioned in the form and the PAN mentioned in the DSC affixed, must be same for successful validation.

In case of foreign nationals, who do not have PAN, the name mentioned in the form must be same as the name mentioned in the DSC affixed for successful validation.

In case the PAN /Name in DSC does not match with PAN/Name entered in the form, they would be required to get a DSC with PAN/Name as specified in the form.

Conclusion:

Now one question arises here, whether DIR-3 KYC shall be filed every year by the every individual who are filing the same in the current year?

We can interpret it as in current year individual who has been already allotted DIN on or before 31^st March, 2018 shall submit form DIR-3 KYC on or before 31^st August, 2018 and rest who will be allotted DIN on or after 1^st April, 2018 but on or before 31^st March, 2019 shall submit DIR-3 KYC on or before 30^th April, 2019 and the same process will go on every year.

Form DIR-3 KYC is required to be filled with the ROC by every Director Identification Number (DIN) holder regardless he is appointed as a director or not, whether he is qualified or disqualified.

  

For more info, Contact details are:

VISHAL SHARMA

Company Secretary

Mob: 9716763754

Email: csvishalpbs@gmail.com

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http://csvishalsharma.blogspot.in/

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Disclaimer: The Content is prepared on the basis of our general understanding and on the basis of relevant provision of Companies Act, 2013 read with rules made there under. The whole content is only for the knowledge sharing purpose, we do not take any responsibility for the correctness of the same.