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Director KYC – Filing of DIR-3 for 2019

The director’s KYC Verification is an annual process introduced for the year 2018. As per recent amendments made in the Companies (Appointment and Qualification of Directors) Rules, 2014 on 30th April 2019 the due date of filing the DIR-3 (KYC of Directors) shall be on or before 30th June of immediate next financial year. Hence the due date of filing the DIR-3 for all the persons who have been allotted a DIN up to the 31st March 2019 is 30th June without any fee, however, in case of late filing, there is an additional fee of Rs. 5,000/-. Please check the status of DIN before you proceed to file director KYC, and in case you missed to file the KYC for the year 2018 then first file the DIR-3 for the year 2018 with a fee of Rs. 5000 then only you shall be allowed to file KYC of directors for the year 2019.KYC Verification of Director Identification Number
All the directors of companies or designated partners of the LLP must file the form DIR-3 online with the digital signature. The only attachment required is address proof. Please refer to the table below to understand the due date and the fee payable for filing the DIR-3 (KYC of DIN).

Table of Contents

The applicability for DIR-3- 2019 – all DIN allotted on or before 31st March 2019

S.No Date of Filing of DIR-3-KYC for 2019 Govt Fee
1.
Up to 30 June 2019
Nil
2.
After 30 June 2019
Rs. 5,000
KYC Verification of Director Identification Number

List of Documents for the filing of DIR-3-KYC form to the ROC KYC Verification of Director Identification Number

  1. The valid digital signature of Class-2
  2. Address Proofs: Passport, Election (Voter Identity) card, Ration Card, Driving License, Electricity Bill, Telephone Bill or Aadhaar
  3. The address is proof to be attached and should be in the name of the applicant only
  4. In case of Aadhar Card, Voter ID or Passport is issued to the applicant then a self-certified copy is a mandatory attachment.)
  5. Personal Mobile Number for OTP Verification.
  6. Personal Email Address for OTP Verification

Practical Points while filing DIR-3-KYC

  1. While submitting the DIR-3 form for verification of the DIN, an OTP is generated and sent on to the mobile and email of the director. The OTP expires after 15 minutes, and a fresh OTP would be required after 15 minutes.
  2. Foreign citizens passport is mandatory, and permanent address must be of abroad; For Indian Citizens copy of Aadhar card is Mandatory,
  3. The professional certifying the e-KYC form needs to verify the mandatory attachment to the form. Attestation of documents by practicing professionals is necessary.
  4. The copy of PAN Card is not required to be attached for Indian citizens. The only mentioning of PAN is sufficient.
  5. Personal Mobile no. And e-mail id should not be linked to any other director or certifying professional. Personal e-mail id should not be official e-mail id – it should be personal like Gmail, Yahoo, etc. As the official ID somehow belongs to the Company, not to the Director itself.
  6. DIR-3 for Foreign Director /Citizen – Foreign mobile no. should be given if he is in Outside India, but if he is in India than Indian Number can be provided. Foreign DSC is not allowed for filing DIR-3, only Indian DSCs shall be used.
  7. In case of the change in address from the DIN records, it is recommended and suggested by Ministry officials first file form DIR-6 and then file form DIR-3-KYC
  8. Passport is mandatory in case of foreign citizens having DIN; however, it is not compulsory for Indian citizens. In case the director has been issued a passport then the same must be disclosed in the DIR-3, and a self-certified copy must be attached as an attachment to the DIR-3 Form.
  9. Driving license and voter ID – not mandatory, but if you specify the details, then you have to attach the documents. The director must make full disclosure of passport, driving license, voter card, and all other information.

The historical perspective of Directors KYC – 2018

DIN Verification, or re-verification of Director Identification Number was introduced with effect from 10th July 2018, for all the DIN allotted up to 31st March 2018. The KYC verification of DIN is to be done by Filing of DIR 3 KYC form to the registrar of companies with the digital signature of the director. The entire exercise was proposed to be completed before 31st August 2018. However further extensions were provided with a revised additional fee for the year 2018.
The concept of DIN was introduced for the first time on 1st Day of November 2006, through notification of The Director Identification Number Rules, 2006. Since then, many changes have taken place in the rules with their subsequent amendments according to the introduction of the new Companies Act, 2013 and the new set of regulations after that. The concept of allotment of DIN changed substantially with the amendment in the Companies Act in 2017. I am summarising the position of allotment of DIN over a period of time. KYC Verification of Director Identification Number
  1. At the Initial Stage of 2006: The MCA introduced DIN-1 Form for allotment of DIN to any person who is a director in the company or intending to become a director. The applicant was required to submit a duly filled application along with his photograph, Identity Proof and Address Proof duly attested by qualified professionals. The DIN application was processed by the MCA and DIN Number is allotted.
  2. With the Introduction of Limited Liability Partnership Act, 2008, a new number known as DPIN was introduced for the designated partner of an LLP, which is akin to the DIN. However later in the year 2011, the DPIN was integrated with the DIN system, and henceforth only DIN is allotted to all the intending director or designated partner.
  3. A significant change took place in 2017 when the companies act, 2013 was amended leading to the current practice wherein the DIN can be allocated to an Individual who has been appointed by a company as a director or designated partner in an LLP. In other words, DIN cannot be allotted only based on one’s intention to become the director of some company, someday. The filing process is also complicated wherein the application for allotment of DIN needs to be endorsed by the KMP of appointing company.
From the time of introduction of DIN, a general liability was created on the director to keep the records of DIN updated if any change takes place in the particulars filed at the time of making an application for DIN allotment. The amendment can be made by filing e-form DIR-6 with the registrar of companies. However, it was observed that the majority of changes were not reported to the ROC and as a result of that, the database of directors or the designated partners are not proper, in many cases the phone number or email address has changed. To address this concern The Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2018 was introduced and came in effect from 10th July 2018, which intends to re-verify the KYC details, Mobile Number and Email Address of the directors who have been allotted a DIN up to 31st March 2018. The salient features of the KYC Verification of Directors are as below.
  1. This is an annual event and every year all the directors who have been allotted DIN up to the 31st Day of preceding financial year are required to re-verify his details by filing DIR-3 KYC Form before 30th April 30 June in the current financial year [the Companies (Appointment and Qualification of Directors) Rules, 2014 has been further amended on 30 April 2019 wherein the due date has been fixed as 30th June for the year 2019 and thereafter].
  2. For the year ending 31st March 2018, all directors were required to submit the DIR-3 KYC before 31st August as this is the first time it is introduced. The failure in meeting the KYC requirement shall make the DIN deactivate and a penalty of Rs. Five thousand shall be imposed. While filing the form, the Unique Personal Mobile Number and Personal Email ID would have to be necessarily indicated and would be duly verified by One Time Password (OTP).
  3. The DIR-3-KYC Form can be filed with the digital signature of the director, which shall be further certified by a practicing professional (CA/CS/CMA) There is no Fee for filing of DIR-3-KYC if filed within its due date, However, if missed the due date then the form can be submitted with an additional fee of Rs. 5000 for each DIN
  4. Kindly note that this is a compliance requirement for the director and not for the company, in case one person is a director in many companies or LLP, even then he is required to file only one DIR-3-KYC. Because of several orders from the ROC, many directors were earlier disqualified, this compliance requirement is also applicable to them. In other words, all disqualified directors also need to file DIR-3-KYC

Due Date of Filing DIR-3 for the year 2018

As stated earlier the eForm DIR-3-KYC is introduced as an annual filing with its usual due date to be 30th April for all the DIN allotted during the preceding financial year ending on 31st March, however for all the DIN allotted during the financial year 2017-18 the due date of filing was initially fixed at 31st August 2018 without any government filing fee, it was further extended to 15th September without any fee. However, in case the DIN holder failed in filing the DIR-3 KYC within the extended due date of its filing, i.e., 15th September 2018 then DIN of all such directors have been deactivated. As per the press report approx. 21, Lac DIN has been marked as Deactive past the due date of 15th September. 2018.
Various representations were made before the Ministry of Corporate Affairs including that of professional institutes like ICSI and ICAI, in consideration of the representations, the Central Government on the 20th September amended the rules and passed Companies (Appointment and Qualification of Directors) Sixth Amendment Rules, 2018. Through the new rule, the filing of DIR-3KYC was allowed up to 5th October 2018 with a filing fee of Rs. 500/- As on today the DIR-3-KYC filing due dates and the filing fee can be summarised as under
S.No Date of Filing of DIR-3-KYC Form Filing Fee
1.
Up to 15th September 2018
NIL
2.
From 16th September to 5th October 2018
Rs. 500
3.
After 5th September, DIN gets deactivated and can be restored by filing DIR-3-KYC
Rs. 5000
KYC Verification of Director Identification Number

For any assistance, you may reach us at +919899600605 or email us at help@setindiabiz.com | For the procedure of filing the DIR-3 and the documentation for DIR-3 you are requested to visit setindiabiz.com

About Setindiabiz

Setindiabiz is an organized team of experienced CA, CS, & Lawyers, duly supported by a pool of trained accountants & paralegal staff that provides quality & affordable compliance services to startups & small businesses in India. The views, statements and recommendations expressed in this article or post are only for the sole objective of providing information, and it does not constitute professional advice or recommendation of the company. Neither the author nor the company or its affiliates accepts any liability for any loss or damage arising from any information in this article or any actions taken in reliance thereon.

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