Director Identification Number or DIN is a unique identification number assigned to individuals who wish to become directors of companies incorporated in India. It is allotted by the Indian Ministry of Corporate Affairs (MCA) and can be applied for, through both online and offline processes. Possessing a DIN before being appointed as a Director is mandatory and in this blog, we will attempt to provide you with complete information about the meaning of DIN, how to get Director Identification Number (DIN), and the documents which are required for the same.
As a mandatory requirement for all directors of Indian companies, the DIN helps to prevent fraudulent activities and ensures transparency in the affairs of the company initiated by its directors. Moreover, the possession of a DIN makes it easier for the government to monitor and ensure compliance of companies with various Indian laws and regulations. Since DIN is only allotted to genuine and eligible individuals, its allotment also promotes better corporate governance by the bodies concerned for regulating companies in India.
DIN stands for Director Identification Number. It is a unique ten-digit alphanumeric number that is issued by the Indian Ministry of Corporate Affairs (MCA) to all directors appointed by companies incorporated in India. The allotment of DIN is mandatory before the appointment of directors and it can be easily obtained through an online application-based process on the official website of the MCA. Once allotted, the DIN number remains valid for a lifetime and can be used by the concerned director in multiple companies at the same time. The concept of DIN was introduced in India in 2006 with the sole objective of creating a comprehensive database of all directors in the country and facilitating their easy identification.
In India, any individual who is over 18 years of age, has a valid PAN card, and is eligible to be appointed as director according to the Companies (Appointment and Qualification of Directors) Rules, 2014, can apply for a Director Identification Number (DIN). However, the following categories of individuals are not eligible to apply for a DIN:
Apart from these individuals, anyone who fulfills the eligibility criteria for being appointed as a director can apply for DIN. It’s important to note that the DIN is a mandatory requirement for all directors in India, and failing to obtain a DIN can result in penalties and legal consequences. Therefore, if you are planning to become a director of a company in India, you must obtain a DIN as soon as possible.
The process of obtaining a DIN is application-based and can be completed online on the official website of the Ministry of Corporate Affairs. The application form for DIN application is DIR-3. You can fill it out and submit it on the MCA website in just 5 quick and simple steps. We have explained each of these steps in detail below.
Step 1: Obtain a Digital Signature Certificate (DSC)
Step 2: Create an account on the MCA portal
Once you have obtained a DSC, the next step is to create an account on the MCA portal. You can register on the MCA portal by providing your email address and mobile number. After registration, you need to activate your account by clicking on the activation link sent to your registered email address.
Step 3: Fill out the DIN application form
After activating your account, you need to log in to the MCA portal and fill out the DIN application form (DIR-3). The form requires you to provide your personal details such as name, address, date of birth, and PAN. You also need to upload a passport-sized photograph and a copy of your PAN card, ID Proof and Address Proof.
Step 4: Pay the application fee
Once you have filled out the DIN application form (DIR-3), you need to pay the application fee. The fee for obtaining a DIN is Rs. 500 per director. You can pay the fee online using any of the available payment options.
Step 5: Submit the application form
After paying the application fee, you need to submit the DIN application form on the MCA website. Once submitted, the MCA will verify your application and issue the DIN if all the details provided are correct. It’s important to note that the process of obtaining a DIN can take up to 1-2 weeks, depending on the time taken for verification by the MCA. Once the DIN is issued, you can use it for multiple companies at the same time as well. So, if you already have a DIN, you need not apply for a new one. You can use the same DIN for all your directorship positions.
Documentation is the most significant aspect of DIN application, as without it, the application is deemed to be incomplete and can be easily objected to or rejected by the concerned authorities. It is important to ensure that all the documents provided with the application are valid and up-to-date. Therefore, we strongly recommend that you ensure the possession of all the documents before submitting your DIN application on the MCA website. A complete list has been given in the table below. The documents need to attested by the applicant and a practicing CA/CMA/CS.
In conclusion, obtaining a Director Identification Number (DIN) is a simple process for those looking forward to becoming a director of any company incorporated in India. By following the step-by-step process and submitting the necessary documents, including your proof of identity and address, your recent passport-sized coloured photograph, and your Class-II Digital Signature Certificate (DSC), you can easily obtain a DIN. The DIN is a unique identifier for directors and allows the Government to maintain a database of all directors in the country, thereby preventing any fraudulent activities and ensuring complete transparency in affairs initiated by them.