Surrender or Cancellation of DIN (Directors Identification Number)

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Reading Time: 4 minutes| (Last Updated On: September 22, 2018)

Surrender or Cancellation of DIN

There are many people who hold a valid DIN and find that the new initiative of KYC verification of the DIN holder is problematic as they did not use the DIN or is no longer a director in any company or LLP. The legal position is that the DIN can be voluntarily surrendered in case it has never been used Surrender or Cancellation of DIN

Surrender or Cancellation of DIN

This article is of much relevance in view of the recent initiative of the ministry of corporate affairs to reverify the information and documents along with the personal mobile number and email id of the person who has been allotted a DIN at the end of every financial year. For the financial year 2017-18 the due date of filing was originally 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 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

 Sl. 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

This massive exercise of KYC verification of all directors is likely to affect more than 50 Lac persons which include around 35 lac directors on the board of companies or designated partners of the LLP. Though the decision to verify the KYC is a welcome move to update the database of directors for proper communication by the government agencies. However, there are many persons who have been allotted a DIN pursuant to their application for allotment of DIN, but they don’t intend to continue to have the DIN anymore. The article is an attempt to present the legal position on DIN with respect to its surrender or deactivation in simple and easy to understand language.

In brief, the DIN is allotted to any person who intends to become director of any company under section 153 of the Companies Act, 2013. For this purpose, the applicant has to submit his KYC documents in form of his photograph, Pan Number, Identity Proof and address proof apart from the information required in the prescribed DIR-3 Form. In case there is any change in the particulars furnished or documents based on which the DIN was allotted the same need to be intimated to the ROC in Form -DIR-6 within 30 days of change so that the ROC records is amended suitably.   

The Central Government acting through their regional director northern region or any other officer as may have been authorized in this regard can cancel or deactivate the DIN under the following situation as per  Rule-11 of the Companies (Appointment of Directors) Rules 2014. The DIN is a duplicate allotment, in other words, if the same person has two or more director identification number

  1. In case it is established that the DIN was obtained by the DIN holder in a wrongful manner. That is to say by furnishing wrong or incorrect information or false and incomplete documents or if the e-form filed for the purpose of DIN allotment were incorrectly certified by a professional
  2. On the information that the DIN holder has died
  3. In case the DIN holder has been declared as of unsound mind or adjudicated as an insolvent by a competent court of law.
  4. On an application of surrender made by the DIN holder in the prescribed e-form DIR-5 along with a declaration that the DIN holder has never been a director or designated partner in any company or LLP and has never filed any document or application before any authority by using the DIN number.

Having discussed the legal position on surrender of DIN as per rules hereinabove, the Voluntary Surrender of DIN is possible only on satisfaction of below two conditions. In other words, a DIN cannot be voluntarily surrendered if below conditions are not satisfied

  1. He has never been appointed as a director in any company or designated partner in any LLP and
  2. The said DIN has never been used for filling of any documents with any authority

To put it simply a DIN can be surrendered voluntarily only when the holder of it has just got it allotted and did not use it for any purpose what so ever.

Procedure for Surrender or DIN

In case the DIN holder satisfies the two conditions stated above an application for voluntary surrender of DIN can be made in prescribed form DIR-5. The government fees for such an application has been fixed at Rs. 1000 under The Companies (Registration Offices and Fees) Rules, 2014. Proof of Identity and address along with a self-declaration that the DIN holder has fulfilled all the conditions prescribed under the rule. The DIR-5 needs to be digitally signed by the applicant which further need to be certified by a professional (CA, CS, CMA in fulltime practice) before it is uploaded to the MCA, the government fee need to be paid through online mode.

Practical Advise. In case the DIN holder qualifies for both the conditions stated above as required to voluntarily surrender the DIN, and he or she does not surrender the DIN and also do not file the DIR-3 KYC form within the stipulated due date the MCA is bound by law to deactivate the DIN and a deactivated DIN cannot be filed for voluntary surrender. In order to voluntarily surrender the DIN, the holder would be first required to activate the DIN by filing DIR-3-KYC with additional government fee of Rs. 5000 and only thereafter the surrender application can be filed.

You may refer an insightful and detailed analysis on the requirement of filing of the DIN-3-KYC in a separate article by clicking here. 

For further insight, you may refer following law on the subject matter

  1. Sections 153 and 154 of the Companies Act, 2013
  2. Rule 11 of the Companies (Appointment of Directors) Rules, 2014
  3. Companies (Registration Offices and Fees) Rules, 2014

About Author

As Co-Founder of SETINDIABIZ & Partner at KPS Legal, I am passionate about Corporate Laws, Taxation, & Intellectual Property Rights. Always Love to meet entrepreneurs and work with them to ensure compliance with the legal regime at all time even if they don't like it!

9 Comments

  1. Hi,

    What will happen if my address has been changed 7 months ago but i have not filed DIR-6. Is there any late fine of penalty.

  2. In one of my case person is having 2 DIN. Out of which 1st alloted DIN is unused and 2nd alloted DIN is used for directorship in a company. So at the time of surrender of unused DIN they generate a query thay the DIN which is alloted 1st should be retained . So in this case give me solution how can i proceed further.

  3. Sir,I was allotted DIN on 13 march 2018 from this date I have not used my DIN for any purpose with any authority, and Neither i wish to do so also as mentioned in artical Surrender of DIN is not possible without filing KYC. What action will be taken if I do not comply with KYC?

  4. Bal Kishan Sikaria on

    A person was a Director in a company for three years and he resign from the Directorship about 1 year. He want to surrender the DIN as he do not intend to become a director in any company in future. Kindly advise how to surrender.

  5. what if 2 DIN are alloted to 1 person and one used in pvt ltd co and one used in LLP.

    DInused in LLP got deactivated . How to surrender deactivated DIN and use only 1 DIn in both Pvt ltd as well LLP

  6. HELLO

    I HAVE ONE QUERY TO SHARING I WAS APPLIED DIR – 5 , PAYMENT ALL SO MADE ,BUT STILL STATUES PENDING FOR APPROVAL

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