Director KYC Filing: Complete Guide & Form DIR 3 (KYC)

According to the latest MCA amendment, filing the DIR 3 KYC e-Form is mandatory for DIN holders with ‘Approved’ status each financial year. It is an annual compliance requirement that DIN holders must undergo. In this blog post, you will get to know what form is needed to be filled for director kyc, its fees and deadline for online form filing.

BRIEF SUMMARY

Running a company smoothly is not only limited to managing internal business operations & management to cater to its clients’ demand but also needs to carry out some responsibilities. Being a director, one needs to fulfill many statutory regulations set under the Companies Act, 2013. One such must-follow annual regulation is director KYC which can be fulfilled by filing DIR 3 KYC e-Form. Someone who is proposed to be a director or already a director in any business, he must have a DIN number.

DIN is an abbreviated word for Director Identification Number that refers to a unique identification number assigned to an individual willing to or proposed to become a director of a corporation. DIN can be obtained by applying through eForm DIR-3. Earlier, it used to be a one-time process. However, post recent amendment in the MInistry of Corporate Affairs’s (MCA) registry, it is obligatory for every director holding DIN to undergo KYC verification by filing e-Form DIR 3 KYC every financial year.

Why is it necessary to file DIR-3 KYC?

A director who was allotted DIN on or before the end of the financial year, and his DIN status is ‘Approved’, is mandatorily required to file form DIR-3 KYC before 30 September of the subsequent financial year. This annual KYC helps MCA to verify and keep the personal information of directors up to date ensuring transparency in the business ecosystem.

Filing DIR-3 KYC eForm post due date is subject to penalty as the MCA will deactivate such DINs by marking its status ‘Non-Compliant to DIR KYC’. However, it is also mandatory for directors with a ‘Deactivated’ DIN to file a DIR-3 KYC form. Simply put, it is a must-follow annual compliance for company directors with DIN.Late filing of DIR-3 KYC form will charge a penalty of Rs 5,000.

Who should submit Form DIR 3 KYC?

Who is required to submit Form DIR 3 KYC?A director is needed to provide their personal details or KYC information only if they meet specified conditions. In their latest announcement, the MCA has stated that those directors must file DIR 3 KYC form to submit their KYC details, who meet the following conditions;

They were assigned a DIN before or on March 31, 2018.
Their DIN has an ‘Approved’ status.

Moreover, even disqualified directors are not exempted from this annual filing and they must comply with it as well.

Types of Director KYC e-form

In order to ease the compliance burden of companies, the government of India takes various initiatives. With intent of minimizing the compliance burden of company directors, it makes amendments to previous policies and regulations. To help directors file their annual KYC filing easily, it has categorized director KYC forms into two forms; eForm DIR-3 KYC and eForm DIR 3 KYC Web service online. Both these director KYC forms have their uses and applicability. The two director KYC e-forms are described below;

Form DIR 3 KYC

A director filing annual KYC against his DIN for the first time with the MCA shall file his KYC information using eForm DIR 3 KYC. Such directors can’t access the DIR-3 KYC Web form.

Moreover, any director who is required to update his KYC details must also take the route of DIR 3 KYC form online only.

Form DIR-3 KYC Web

Form DIR-3 KYC web service can only be accessed by those directors who have filed eForm KYC in any recent past financial year and need not to update their KYC credentials as submitted earlier. Such directors can file their annual KYC through the DIR-3 KYC web service.

This form helps directors verify the KYC information that they have provided in the previous year’s DIR-3 KYC Form online.

Documents Required to File DIR 3 KYC Form

To file DIR 3 KYC Form, certain document requirements must be met. The documents required for filing DIR 3 KYC form are listed below;

Details of Nationality
Details of Citizenship i.e. Gender, & Date of Birth, etc
Details PAN
Details of Passport (if a DIN holder is foreign citizenship)
Proof of Identification i.e. Aadhar Card, Driving License, Voters’ ID Card
Personal Mobile Number & Email ID
Proof of Residential Address

Apart from the aforementioned documents, a director also must have a few other documents including;

Digital Signature Certificate (DSC) to sign form digitally
All documents must be attested by a CA, CS, or Cost Accountants currently in practice. In case of foreign nationals, the attestation must be done by a defined authorized individual.
Letter of Declaration signed by a director that must be attested by CA, CS, or Cost Accountants.

Fee for Filing DIR-3 KYC

No fee is applicable on eForm DIR-3 KYC if it is filed under the due date. Post surpassing the due date, an applicant will be charged Rs 5000 along with the DIR KYC form. So, it is always advisable to file any compliance within the due date to avoid any interruption in business due to any legal action. It is always advisable to file annual compliance within the due date to avoid any sort of penalties, and legal actions.

Filing DIR 3 KYC form is a necessary compliance that every DIN holder with their DIN status Approved has to file it every year before the last date. The two types of director KYC Form are eForm DIR-3 KYC (for first time KYC filing) and second is eForm DIR-3 KYC Web (for existing DIN holders with no change in KYC information). This annual filing allows directors to submit and verify their KYC details.

Conclusion

FAQs

Q1: Is there any penalty or fine for late filing DIR 3 KYC and DIR-3 KYC Web?

Failing to or late filing to director KYC form will result in a fine of Rs. 5,000 that you’ll have to pay while filing the form.

Q2: Should an applicant have a unique Mobile number & Email id for filing KYC Form?

Yes, you should have your personal Mobile Number & Email ID while filing dir kyc form online. The same mobile number and email ID will be verified by separate OTPs. Additionally, it is also important to keep in mind that the mobile number and email ID you are submitting in the director kyc form, are not linked to any other DIN holder’s data.

Q3: Is it mandatory to have a DSC to file director KYC?

Yes, an applicant must possess a DSC before filing e-form as the online dir kyc form must be digitally signed before final submission.

Q4: What is the deadline for filing form DIR-3 KYC Web?

The DIR 3 KYC eForm Web must be verified and submitted before September 31 of the respective financial year.

Q5: What documents are required if a DIN holder is an NRI or a foreigner?

In case of an NRI director, he/she must provide essential documents including:

PAN Card (Mandatory)

Copy of Passport

Proof of Identity (mainly Passport)
Passport & Address Proof translation (must be notarized & apostilled by the competent authority of that foreign country).

One thought on “What is the form to file the Director KYC?”

The explanation on the types and documents required to file DIR 3 KYC is very clear. Thanks for sharing with us. It made the process much easier to understand.👍

What is the form to file the Director KYC?