DIR-3 KYC Compliance
Updated as on 01.04.2020
The person who holds DIN (Director Identification Number) for the purpose of appointment of director in any Company or LLP or OPC (One Person Company) needs to submit his/her ID and Address proof again in a separate form which is termed as DIR-3 KYC in case of changes in personal details or pan card, aadhar card, address of director and passport.
If there are no changes in Personal details of ID , address proof of director, then director shall file DIR-3 KYC WEB after log in to MCA portal on or before 30th September for particular financial year. There would be no Government fees for filing DIR-3 KYC or DIR-3 KYC WEB if file before due date. If form is filed after expiry of due date, then additional fees of Rs 5000/- is to be paid.
To submit DIR-3 KYC, every director has to give true information where he/she lives or where he/she belongs to. For this he/she has to submit his/her address proof duly certified from Practising professionals like CS/CA/CWA or notarised from Foreign Public official if he/she resides out of India. In order to check the present residence and present nationality and updated personal information , he or she would need to provide all necessary documents before the due date of filing of DIR-3 KYC.
The purpose behind introducing this form is not only to keep track on their ID and residence but also to make better compliance in respect of holding of minimum Board meetings, holding of Annual General meetings, extra ordinary general meeting (on urgent basis) and make sure that disclosure given in e-forms AOC-4, MGT-7 are true and correct.
As per my experience, this form has given more vision to the professionals to give peer review to the Government. During past years, we have observed or noticed few fraud cases in terms of Company Law, FEMA, Custom ACT, RBI (Banking regulations) because of which the Government thought to scrutiny the compliance made during the year. This form has made it easier to detect the frauds behind the forthcoming criminal act and also to prevent money laundering activities.
What is DIR-3 KYC Compliance?
The Central Government on 5th July, 2018 had initiated the process of keeping track on DIN which were allotted upto 31.03.2018 after implementation of new Companies Act 2013. It made an amendment in Companies (Appointment and Qualification of Directors) Rules 2014.
For the purpose of updating the information database about the directors, it is made compulsory for all directors to file their respective KYCs with the Government.
Every director who holds approved DIN shall provide his/her KYC details by filing e-form DIR-3 KYC every year. [Rule 12 A of Companies (Appointment and Qualification of Directors) Rules, 2014].
Every individual who holds a Director Identification Number (DIN) as on 31st March of a financial year shall, submit e-form DIR-3-KYC to the Central Government on or before 30th September of immediate next financial year Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2019.
The Directors who have already filed DIR-3 KYC for the previous financial year, are also required to file DIR-3 KYC every year. the due date is 30th June of that financial year.
Which type of individual DIN holders require filing of DIR-3 KYC?
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Directors of Private companies and One person Company (OPC)
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Directors of Public Companies
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Designated Partner of LLP
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Directors of Dormant Company
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Disqualified directors
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Foreign individual who holds DIN.
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Director of Strike off Company
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Director of Wound up Company
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Individuals who hold DIN but are not Directors or Designated Partners anywhere.
What information shall be provided in KYC form?
1. Director`s and Father`s name, middle name and last name as per PAN database.
2. PAN Card is compulsory in case of Indian National
3. Passport is compulsory in case of Foreign national
4. Personal Mobile number and Email address: OTP will be sent on SMS and on email. Also, if Director is Non-resident Indian (NRI) then the Country Code is to be mentioned.
What are mandatory documents as attachments for DIR-3 KYC?
- PAN Card is compulsory in case of Indian National
- Passport is compulsory in case of Foreign national
- Copy of Aadhar Card (conditional)
- Copy of Passport, if you have a valid Passport (conditional)
- Proof of Permanent address (Compulsory)
- Passport (Valid as on the date of filing) or Election (voter identity) card or Ration card or Driving license or Electricity bill or Telephone bill or Aadhar card. (Address proof should be in the name of applicant only.)
- Proof of present Address, if permanent and present addresses are different. (Address in India must be entered in case you are a resident in India.)
Note : All the documents shall be self attested by the DIN holder and certified by Company Secretary / Chartered Accountant or Cost Accountant in whole-time practice.
What are the consequences of non- compliance?
Central Government shall deactivate the Director Identification Number (DIN) of an individual who does not intimate his/her particulars in e-form DIR-3-KYC within 30th April of the next financial year.
Re-activation of DIN
For re-activation of such deactivated DIN, e-form DIR-3-KYC is to be filed along with fees of Rs. 5000/- (Rupees Five Thousand only) (Prescribed by Companies (Registration Offices and Fees) Rules, 2014).
DIN Compliance FAQs:
1. I have been allotted DIN and have completed the DIR-3 KYC for the year 2017-18. Do I have to file DIR-3 KYC again for the year 2019-2020 and every year thereafter?
Ans. Yes. The Ministry of Corporate Affairs, has clarified that “every director having DIN are required to file Form DIR-3KYC every year with MCA”.
The revised form is still not available on the www.mca.gov.in Portal & once it is made available, you can file without any fee within a period of 30 days from that date. Accordingly, DIN holders who had filed DIR-3 KYC form earlier and complied with the said provisions may kindly await the deployment of the modified form for fulfilling their compliance requirements
2. I hold a DIN since 03.06.2017 but have not yet filed DIR-3 KYC, what are the legal consequences?
Ans. All those DIN holders, who have been allotted DIN on or before 31.03.2018, had to file KYC within 6th October, 2018, if after this date KYC is not filed then the DIN will be “Deactivated due to non-filing of DIR-3 KYC” and in order to remove this non compliance the Form DIR-3 KYC has to be filed with a fee of Rs. 5000/- (Five Thousand Only).
3. I am a director, who holds a DIN with all updated information through KYC, but recently my passport had expired and so I applied for a new passport; but since due to changes in Passport, the data on MCA has to be updated, what is the process and do I have to file KYC again after making the requisite change?
Ans. For the purpose of updating any data on MCA due to change in any documents already filed, the DIN holder has to submit E-Form DIR-6 to RoC within 30 days from the date of such change. The change can be either PAN or Aadhar details or address proof or change of photograph etc. The data on MCA site gets automatically updated after filing DIR-6 and again DIR-3 KYC has to be filed every year.
4. For filing DIR-3 KYC, I don`t have Aadhar card, what else can I submit as an Identity Proof?
Ans. You can submit copy of passport or driving licence or election card as ID proof.
5. Can I submit Aadhar card copy as my address proof?
Ans. Yes, Aadhar card can be attached as an address proof. The following can be used as an address proofs: passport, election (voter identity) card, and ration card, driving license, electricity bill, telephone bill (latest not older than 2 months) or Aadhar shall be attached and should be in the name of applicant only.
6. Can I file DIR-3 KYC if I do not have a DSC?
Ans. No. In order to file the KYC, the DIN holder must possess a valid DSC
If you do not have a valid DSC, then obtain one and you must associate the DSC on MCA first and then affix it on DIR-3 KYC.
7. While filing DIR-3 KYC, I came across that I have been allotted two DIN and I am a Director in 2 different companies with 2 separate DINs, thus I cannot file DIR-3 KYC. How can I file the form and for which DIN?
Ans. Firstly, the DIN holder has to surrender the DIN (Rule 11 of Companies (Appointment of Directors) Rules, 2014).which is latest and retain the oldest DIN with him/her. For surrendering the DIN he/she has to file DIR-4 with ROC. Wherein he/she has to mention the DIN to be retained and the DIN to be surrendered.
After filing of the form, the Central Government on being satisfied with the documents and evidences and DIN issued is duplicate or DIN was wrongfully obtained it will surrender the DIN and then the DIN holder can file DIR-3 KYC with the ROC.
Also the DIN holder has to make sure that the DSC has been registered on MCA with the DIN retained and only then the form can be filed.
8. I am a Foreign National and also a Director in an Indian company, I have to file DIR-3 KYC. What are the documents to be filed and is self attestation sufficient?
Ans. For a Foreign National holding DIN, he/she has to check whether he/she is a national of a country which is a common wealth country or not. If he/she is a citizen of Common wealth country then he/she has to get his documents notarized. If he/she is a citizen of Non Common Wealth country then he/she requires to get documents notarize and apostile.
9. Recently I have struck off my Company’s / LLP’s name from the Registrar, still do I have to file KYC every year?
Ans. Yes, every DIN holder has to file KYC every year though he/she has been resigned from company, or he/she has closed the company business and his company is struck off.
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Legal Disclaimer:
My company is registered in Nov 2020 and their is no change in informaton of directors , so do i need to file DIR 3 KYC or DIR 3 KYC Web ?
As per Companies (Appointment and Qualification of Director ) Rules 2019, every director who hold DIN (Director Identification Number) shall require to update his KYC details every year by way of filing e-form DIR 3 KYC for the first time and later on DIR -3 KYC WEB if there is no change in details. It is mandatory to do KYC compliance.
Please guide in the below matter.
In case the term of an Independent director of a Public Limited Co. (Wholly Owned Subsidiary of a Listed Co.) which was initially appointed on 06th March 2018 and his tenure is expired after 3 years or the 11th AGM whichever is earlier; The 11th AGM of the company is due on 30.09.2020, However it has been subsequently extended to 31.12.2020 by ROC.
Other Information
Last Board Meeting of the company held on dated 06.10.2020
Query:
Is the office of Independent Director is deemed to be vacated from 01.10.2020 onwards in case company has not moved resolution of his re-appointment in the last board meeting which held on dated 06.10.2020 and not filed form DIR 12 and relied on the assumption that his 11th AGM is due on as per recent circular of MCA i.e. 31.12.2020
As per my view, the office of an Independent director shall be vacated from 06.10.2020. The AGM can be held on or before 31.12.2020 as per extension given by Government.
A private limited company was formed on 18 jan 2020 and after carrying business activity for a while discontinued its business since 28.12.2018. can such a company apply for dormant status by holding board meeting in august 2020 and EGM in september 2020
I think there must be typo mistake in registration date of company, it must be 18th Jan 2018. The company can apply to Registrar for Dormant status after completion of exact two years i.e. after December 2018 ( because you have noted 28.12.2018 date from which the business is discontinued). Hold Board meeting and then as per Articles of association, ( consider notice period) call General meeting. File MGT-14 and then MSC-1 form to Registrar, attach certified true copy of Special Resolution, Notice of General meeting.
Wholly owned subsidiaries of PSB’s Bank like – BOBCAP,PNB Investment, CENTBANK Financial are mentioned under company Sub -Category as Union Govt Company on MCA , whereas SBI CAPITAL Market which is also a wholly owned subsidiary of SBI Bank showing Non- Govt Company why??
As per my opinion, PSB Bank and SBI are both Public sector banks and sub category must be Union Government company. But if in case of SBI capital Market, the shareholding pattern must be checked. If the shares are undertaken by private individuals, then it could be Non Government company. MCA has alloted the category as per the shareholding pattern.
Thanks for the reply!!
Basied on yours revert, I have searched and found that in SBI Caps Market 100% shares are held by SBI and out of total 5,80,33,711 shares, 24 shares are held by nominee of SBI,hence none of the shares are held privetely, even the kind of shares arrangement is done by others PSB Banks in their subsidiares shareholdings (PNB, BOB, CBI Etc)
Then why MCA has made such kind of differentiate by showing SBI Caps as Non- Govt Co. and rest of banks wholly owned subsidiaries as union govt co.
I would say if you also check with respective Registrar of companies office, you will get clear position of the case.
Ma’am,
in the case of a Non resident Indian, does he have to get his PAN copy,copy of passport, permanent address and present address proof notarized? Should he get it done at the Indian embassy abroad?Or is it from a public notary in that country? Please help ma’am. To advice the client in the proper manner.
As per Companies (Incorporation) Rules, 2014, NRI member is required to get documents ( such as ID and address proof along with passport)notarised from Indian Embassy abroad. If that foreign country is Non common wealth country then additional Apostil is also necessary. I would advise you to please check whether country is common wealth or non common wealth and then obtain attestation.
Thank you ma’am
THANKS A LOT.
I HAVE ASKED MY CA TO DO THE NEEDFUL. HOW CAN I CONFIRM THAT HE HAS DONE IT WITHIN THE DEADLINE.
You can check the DIN KYC status on MCA site through DIR-3 KYC WEB.
Thanks a lot for your valuable information.