The Director KYC filing process is one of the necessary compliances that directors of companies must follow. In this process, the proposed or existing directors of a company are required to provide their updated KYC details through e-Form DIR 3 KYC to the Registrar of Companies (ROC). Navigate the required documents checklist, eligibility, and fees to get your director's KYC completed efficiently.
A director identification number (DIN) is a unique identification number granted to a person who is proposed to be a director or already holds the position of director in a corporation(s). By filing an eForm DIR-3, DIN can be obtained. It was introduced to be a one-time process for individuals wishing to become a director of one or even more companies. However, some amendments in the register of the MCA took place related to the director KYC to facilitate the dir kyc process Process. According to the amendment, each director holding a DIN is now required to submit their KYC details in e-Form DIR-3 KYC every year.
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Why does the need for Director KYC Process arise?
Director KYC Registration process filing is an activity that every individual holding a DIN should follow at the beginning of every financial year. In this process, the directors are required to provide their updated KYC details in e-Form DIR 3 KYC to the Registrar of Companies (ROC). Similar to directors, the Secretary and Manager of a company are also required to provide their Income-Tax Permanent Account Number (PAN) to ROC. The purpose of filing the DIR 3 KYC process form is to maintain updated records i.e. address, mobile number, and email address of the directors.
Who needs to file Form DIR 3 KYC?
According to the MCA’s latest amendment, Individuals holding an active DIN are required to submit their KYC details to the Registrar if they fulfill the conditions listed below;
- They have been allotted DIN before or on March 31, 2018.
- Whose DIN is in ‘Approved’ Status.
- From the Financial Year 2019-20, it is a must for every director who has been given a DIN on or before the end of the financial year and whose DIN is in Approved status, to file form DIR-3 KYC before 30th September of the next financial year.
The directors who have been disqualified, yet hold an active DIN, also need to follow this process.
Checklist for filing Director KYC
It’s essential to take some points into consideration before initiating a DIR 3 KYC filing process form to the MCA. The following checklist must be met before in order to to file the e-Form DIR-3 KYC ;
- Every director’s personal mobile number and email address should be provided. The number as well as email address must also be verified by an OTP (One Time Password).
- Digital Signatures of the directors.
- Directors have to ensure that their provided information in the e-Form is complete and true to the best of their knowledge. It should also be certified by a Chartered Accountant (CA), Cost Accountant, or Company Secretary (CS) in practice.
Along with the aforementioned checklist, the directors should also have some basic details and documents mentioned further;
- Details of Nationality
- Details of Citizenship including gender, date of birth (DOB), etc.
- PAN Card
- Identity Proof i.e. Voter’s identity Card, Driving License (DL), or Aadhaar Card
- Residential address Proof
- Passport (in case, the DIN holder is a Foreigner)
What Forms are needed to be filed for the Director's KYC?
In general, any of the two ways can be taken for filing a Director’s KYC on the MCA Portal; the first one is Form-based (DIR-3 KYC) and the second one is Web-based. However, opting for these methods depends on two factors; the date of DIN allotment and if some changes occur in the DIN holder’s information including Phone Number, Email or Address, etc. Choosing relevant methods depending on the scenario is a must; it goes as follows:
Filing of DIR KYC Process for First Time
If a DIN has been allotted between 1 April 2023 and 31 March 2024, the director KYC registration process needs to be filed for the first time in the financial year 2024-25 on or after 1 April 2024. In such a case, DIN KYC can be filed by uploading a duly filled copy of the Prescribed e-Form DIR-3 (KYC) by MCA. Along with this e-form, the copy address proof must also be attached. This e-form should be digitally signed by the applicant and also be attested by a CA, CS, or CMA having in practice.
Filing DIR KYC Form for Second Time or Subsequent Year
After filing the DIR KYC Form for the first time last year, a director can get their KYC done for the second time using a simplified web-based DIN KYC method. The process involves logging into the MCA portal and providing required details along with uploading needed documents. However, it is applicable to those cases where there is no change in the director’s particulars. The web-based KYC filing method is a simplified way that uses only email and mobile OTP confirmation of the applicant.
The Ministry of Corporate Affairs has introduced this web-based DIN KYC facility by adding a provision in the Companies (Appointment and Qualification) Rules, 2018’s Rule 12A in order to ease compliances. It is really helpful for the directors with DIN who have filed DIN KYC in the previous year and their particulars (residential address, mobile number, and email address) have not changed since then. This web-based filing doesn’t require any submission or uploading of documents. However, the directors have to ensure that all the particulars are correct and have no any changes.
Filing DIR KYC Process Form when DIN particulars have changed
If there is any change in the director’s particulars such as the Residential Address, Mobile Number, or Email Address, then those directors have to initiate filing an amendment application in DIR-6 before filing the DIR-3 KYC form. Such directors are not eligible to opt for the web-based dir kyc process.
Stepwise Process to File the Director KYC to ROC
In order to get your Director’s KYC done properly, certain steps need to be followed. For filing DIR-3 KYC, the following stepwise procedure should be followed;
- Obtain Digital Signature Certificate (DSC): As a director, you must have a valid DSC to file Form DIR-3 KYC. If you don’t have a DSC yet, get your DSC first before going for filing Form DIR-3.
- Arrange necessary documents: It’s crucial to arrange all necessary documents including residential proof, identity proof, and a recent passport-size photograph. Don’t forget to self-attest these documents in the prescribed manner.
- Browse MCA Portal: Visit the MCA portal and log in with your existing account credentials or can create a new one if you haven’t signed up to this portal ever before.
- Fill Form DIR-3 KYC: Find the FORM DIR-3 under the ‘MCA Services’ section and click on the ‘Director KYC’ section. Fill in the required information i.e. DIN, Personal information, and address. Make sure that all the given details are correct and match the documents provided.
- Upload documents: Upload the scanned copies of the required documents that include self-attested residential proof, identity proof, and also a passport-size photograph, etc.
- Final Submission: Once the form has been filled in completely, sign it digitally using your DSC and submit it. Now, make payment of the prescribed director KYC registration fees (if applicable) to complete the filing process.
Upon final submission of the DIR 3 KYC form, the MCA will review the application and approve it if finds everything is up to the mark. On successful approval of this form, the MCA will send a confirmation email to the applicant.
By following the above-mentioned director KYC registration process, you can get your KYC done properly. To avoid penalties & other legal prosecution, ensure to file your DIR 3 KYC form before the due date or last date. Seeking professional guidance from Setindiabiz can help you get your dir 3 kyc filing process executed & completed within the due date. Feel free to reach out to us and get expert consultation!
FAQs
Q1: What is the penalty fee for filing the DIR 3 KYC Form after the last date?
The directors who fail to file the DIR-3 KYC Form after its last date, then they will have to pay a penalty fee of INR 5,000 if they want to file the KYC form after the due date.
Q2: What happens if a director fails to file DIR 3 KYC before the due date?
If any director fails to file the Director 3 KYC form within the prescribed date, then your DIN will get deactivated on the MCA portal stating the reason ‘Non-filing of DIR-3 KYC’.
Q3: Who can file an e-form DIR 3 KYC?
As per the MCA’s recent announcement, the filing of the Director KYC form must be done by the directors who have been allotted DIN on or before March 31, 2018. The directors whose DIN status is ‘Approved’ must also have to submit their KYC details before the notified date. Moreover, the disqualified directors must also file Director KYC forms.
Q4: What documents are required before filing the Director KYC Process Form in India?
The following listed documents must be arranged before filing Director KYC;
- Residential Proof of the directors
- Identity Proof of the directors i.e. Voter’s Card, Aadhaar Card, Driving License, Passport
- PAN Card of the directors
- Bank Statement
- Digital Signature Certificates (DSC) of the directors
Q5: What is the deadline for filing Form DIR-3 KYC?
For existing directors, the deadline for filing the Director KYC form is generally September 30 each year. However, checking the MCA website regularly is necessary for any updates or changes in the deadline.
Your infographic is on Stepwise process to file the Director KYC to ROC so good and also easy to understand. Thanks