Director’s KYC in DIR-3

• With a view to update its registry, Ministry of Corporate Affairs (MCA) will be conducting Know Your Customer (KYC) of all Directors of all companies (including Section 8 companies) annually through e-form DIR-3.
• If you are a Director on the Board of a Company, including a not-for-profit company registered under section 8 of the Indian Companies Act 2013 (earlier Section 25 of the Indian Companies Act 1956) you are required to complete your Director’s KYC before 31^st August, 2018 or face penalty of INR 5,000/-

Who should comply?

Every Director who has been allotted DIN on or before 31^st March, 2018 and whose DIN is in ‘Approved’ status would be compulsorily required to file form DIR-3 KYC on or before 31^st August, 2018.

Provisions of the law

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 as amended by Companies (Appointment and Qualification of Directors) fourth Amendment Rules, 2018.

Rule 12A:

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

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

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 as amended by Companies (Registration Offices and Fees) Third Amendment Rules, 2018.

What is required for filing e-form DIR-3-KYC?

1. Valid Mobile No. and email address for OTP verification

2. Digital Signature (DSC) of Director

3. Self-attested PAN card;

4. Self-attested Aadhar card with updated Mobile number with UIDAI;

5. Self-attested Passport or other valid address proof

Please note:

1. Filing of DIR-3 KYC would be mandatory for Disqualified Directors as well.

2. After expiry of the due date by which the KYC form is to be filed, the MCA-21 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’.

3. The form should be filed by every Director using his own DSC and should be duly certified by a practicing professional (CA/CS/CMA).

4. No fee shall be chargeable till the 31st August, 2018.

5. After the due date filing of DIR-3 KYC in respect of such deactivated DINs shall be allowed only upon payment of a late fee/ penalty of Rs. 5000/-.