Comprehensive Guide to Filing Form DIR-3 KYC: Ensuring Compliance for Directors

Introduction

A Director Identification Number (DIN) is a unique identifier assigned to individuals who wish to become directors or are already directors of companies in India. The DIN system was introduced as part of the Ministry of Corporate Affairs (MCA) efforts to enhance corporate governance and streamline the identification of directors. Initially, obtaining a DIN was a one-time process done through the submission of eForm DIR-3. However, to maintain the accuracy and integrity of director information in MCA's registry, an annual KYC update is now required for all directors holding a DIN. This annual compliance is facilitated through the submission of eForm DIR-3 KYC.

Purpose of Form DIR-3 KYC

The primary purpose of Form DIR-3 KYC is to ensure that the details of directors listed in MCA's records are accurate and up-to-date. Every director must inform all companies in which they hold directorships about their DIN using Form DIR-3B within 30 days of receiving the DIN. Additionally, companies must report the DINs of their directors to the Registrar using Form DIR-3C within 15 days of receiving the intimation. This KYC process helps prevent misuse of DINs and ensures the authenticity of corporate governance.

Who is Required to Submit Form DIR-3 KYC?

Directors must submit their KYC details to the MCA if they meet the following conditions:

• Their DIN was assigned on or before March 31, 2018.
• Their DIN is in an approved status.

Moreover, even disqualified directors are required to submit their KYC details.

eForm DIR-3 KYC for First-time Filers and Updates

For directors filing their KYC details for the first time with MCA, the submission must be made through eForm DIR-3 KYC. This form must also be used by directors who need to update any of their KYC information. The process ensures that the MCA has the most current and accurate information about each director.

eForm DIR-3 KYC Web for Annual Compliance

Directors who have already submitted eForm DIR-3 KYC in previous financial years and do not require any updates to their KYC details can use the DIR-3 KYC web service for their annual KYC compliance. This web service verifies the data previously submitted by the DIN holder, simplifying the annual compliance process.

Applicable Fees for Form DIR-3 KYC

There is no fee if Form DIR-3 KYC is filed within the due date of the respective financial year. However, if the form is filed after the due date, a fee of Rs. 5000 becomes payable for directors whose DIN status is 'Deactivated due to non-filing of DIR-3 KYC'.

Due Date for Filing Form DIR-3 KYC

The due date for filing Form DIR-3 KYC for directors is typically September 30th of each financial year. Here are the key timelines:

• DIR-3 KYC: Applicable for directors who have not filed the DIR-3 KYC form previously or need to update their email ID or mobile number.
• DIR-3 KYC Web: Applicable for directors who have previously filed Form DIR-3 KYC and do not need to update their email ID or mobile number.

Documents Required for Filing Form DIR-3 KYC

The following documents are required to file Form DIR-3 KYC:

• Nationality details.
• Citizenship details such as gender and date of birth.
• Permanent Account Number (PAN).
• Passport (mandatory for foreign nationals).
• Driving License.
• Aadhaar card.
• Personal mobile number and email ID.
• Proof of residential address.
• Voter Identity card.

Additionally, directors must have:

• A digital signature for form submission.
• Attestation of documents by a Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant in practice. For foreign nationals, attestation by a defined authorized person is required.
• A declaration signed by the director and attested by a CA, CS, or Cost Accountant in good standing.

Detailed Procedure for Filing eForm DIR-3 KYC

Step 1: Download the Form

The first step is to download the DIR-3 KYC form from the MCA's official website.

Step 2: Fill in DIN Details

Enter the DIN in the KYC form, ensuring it is in an 'Approved' status. Directors whose DIN has been deactivated due to non-submission of the KYC form can reactivate their DIN by filing the form and paying the late filing fees.

Step 3: Fill Out the Form with Required Information

Name and Relevant Credentials

• The director must enter their first and last name as it appears on their PAN card.
• The director’s father’s first and last name must also be provided.
• Acronyms, single alphabets, and short forms are not permitted.

Nationality

• Declare the nationality. Foreign nationals must declare the nationality mentioned in their passport.

Age Declaration

• Enter the date of birth in the DD/MM/YYYY format. Only individuals aged 18 and above are eligible to file this application.

Address

• Enter the permanent residential address and attach proof of address.
• If the current residential address differs from the permanent address, provide the current address.
• A foreign pin code can be furnished only when the state selected is “NA”.

Step 4: PAN Verification

• Enter the PAN and click the ‘Verify income-tax PAN’ button. The system will validate the PAN details against the MCA records.
• For successful authentication, the PAN provided must match the PAN indicated in the DSC. For foreign nationals without a PAN, the name on the form must match the name on the DSC.

Step 5: Update Contact Details and Verify OTP

• Update the contact details by providing a phone number and email address.
• Verify these details using OTPs sent to the provided mobile number and email address. OTPs can be generated up to 10 times per day and twice every 30 minutes per form.
• Only directors who are not Indian citizens can use country codes other than +91/91/0.

Step 6: Attested Attachments

• The listed documents must be attested and uploaded. The applicant must also digitally sign any additional attachments.

Step 7: Authentication of e-Form

• The e-form must be digitally signed by a CA, Cost Accountant, or CS in practice. Their information and digital signature are mandatory.

Step 8: SRN Generation

• Upon successful submission, an SRN is generated for future correspondence with the MCA.

Step 9: Email Communication

• The applicant will receive an acknowledgment email. Once this email is received, the filing process is complete.

Filing Form DIR-3 KYC Web

Step-by-Step Process

1. Login to the MCA Portal: Use valid credentials to log in to the MCA portal.
2. Access DIN Services: Click on the MCA service option and select DIN services.
3. Select DIR-3 KYC Web: Choose the DIR-3 KYC Web option from the list of services.
4. Provide DIN Details: Enter the DIN details. The preloaded mobile number and email ID will be displayed.
5. Verify OTP: An OTP will be sent to the mobile number and email ID. Enter the OTPs to verify.
6. Submit Details: Check the pre-loaded details and submit the form.
7. Zero Rupee Challan and SRN: If filed on or before September 30th, a zero rupee challan and SRN will be generated.

Conclusion

The Form DIR-3 KYC is a vital compliance requirement for directors holding a Director Identification Number (DIN). This annual submission ensures that the details of directors are current and accurate in the MCA records, thereby preventing the misuse of DINs and enhancing the integrity of corporate governance in India. Directors are advised to adhere to the stipulated deadlines and ensure the accuracy of the details provided to avoid penalties and potential deactivation of their DIN. The DIR-3 KYC form is an essential component of India's regulatory framework, reinforcing the reliability and transparency of corporate operations.

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Article Compiled by:-

Mayank Garg

(LegalMantra.net Team)

Disclaimer: Every effort has been made to avoid errors or omissions in this material in spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition In no event the author shall be liable for any direct indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information Many sources have been considered including Newspapers, Journals, Bare Acts, Case Materials , Charted Secretary, Research Papers etc.

 

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