Procedure & Precautions to take before filing for DIR-3 KYC

DIR-3 KYC

The Ministry of Corporate Affairs (“MCA”)in its notification of July 5, 2018, has made it mandatory for every person holding Director Identification Number (DIN), that means, all directors of any company, and all partners/directors of LLP, must get his DIR-3 Know your Client or DIR-3 KYC, updated  with the MCA within the due dates provided in the Rules. Here the Format of this KYC Form has also been duly prescribed. Every person holding DIN, on or before March 31^st of a financial year, has to file this Form with MCA on an annual basis, on or before April 30^th of the immediate next financial year. It includes all DIN in ‘approved’ status, whether "Inactive" or "Disqualified". The MCA says that whether a person is holding directorship in any company or not, he must file this DIR-3 KYC, as long as he's holding a DIN. The Rules came into from July 10, 2018, onwards. So, for those directors who had been allotted DIN on or before March 31, 2018,  they are required to file DIR-3 e-KYC on or before August 31, 2018. After expiry of the due date, if the Form has not been filed, the MCA will mark all approved DINs as "Disqualified" with reason as ‘Non-filing of DIR-3 KYC’. Which can be re-activated on paying a Penalty on Non filing of DIR-3 KYC and filing the Form. As of now, this requisite fee is Rs 5000/-.

Details to be filed in DIR-3 KYC

Director's Personal Details: certified by a practicing Chartered Accountant or Company Secretary or Cost & Management Accountant

• Name of the director - PAN card. PAN card is mandatory for Indian nationals. And the name has to be as per the PAN card. In case the details in the Pand card are incorrect, then, the director/designated partner needs to first get the details in the Pan card corrected,
• DIN - Do make sure your DIN is updated according to the Key changes in DIN Application procedure,
• DSC (Digital Signature Certificate) & its Expiry Date: this is to be self-attested,
• Address -  any one of these are valid as address proof for this KYC - Bank Statement or Utility Bill (Mobile Bill, Electricity Bill any other document in proof of same),
• Passport - in case of Foreign Nationals,
• Email id,
• Mobile number,
• Either of Passport, Election(voter identity) card, Driving license, Aadhaar (earlier Only Aadhaar was mandatory, but with recent developments on Aadhaar not made compulsory, so these options were provided),
• Declaration by the applicant.

Regulations around e-Filing of KYC of Directors that you MUST check

• Mobile number and E-mail id may be given of the company but it must be used only by the applicant.
• This KYC e-form and all the above-listed documents are to be digitally signed by the director himself. No other director of the company is allowed to sign the e-form on behalf of the director whose KYC is being done.
• All the documents for DIN, DSC must be associated with the same PAN. And the details must match.
• You need to get all above documents duly signed by a certified CA/CS/CMA, although the DIR-3 e-KYC is an online process. Even the Mobile number & email id has to be certified that these belong to the Director only. And OTP will be sent on either of these two, for e-filing.
• All the documents & the e-form is to be uploaded on the site, after getting attested by the CA.
• Once all documents have been uploaded, the "Send OTP" button will get only when DSC is affixed. The OTP thus received will be valid for a duration of 15 minutes only
• If the Director is holding two citizenships then he may/may not check yes in the field ‘Citizen of India’.
• In the permanent address field, if the Director is a Resident Of India (ROI) then he has to write his Indian address but if he is not, then he will have to write his foreign address. And Foreign Numbers.
• In the case of Foreign Nationals, documents need to be attested by the prescribed authority.
• OTP Validation for Foreign Nationals & their numbers is also compulsory.
• Director's own DSC is to be used for e-filing. Only the Director himself is responsible for this. Not the professional associated.
• This Form is Straight Through Process (STP) mode, No approval required from Registrar of Companies (ROC).
• No Government fees are levied for filing the forms.
• When a Director holds Multiple or Duplicate DINs, he has to e-File using the Oldest DIN only. Later DINs must be surrendered. Moreover, DIN once associated is NOT eligible for surrender.

Procedure to e-File for DIR-3 KYC

  With the last date for filing DIR-3 KYC long expired on Sept 15th, 2018, for the current Financial Year, 2018-19. Also the deactivation process over, The Non-Compliant Directors, may still get their DIN re-activated through E-filing of their Dir-3 KYC, with payment of a stipulated fee. Reach out to us at LegalRaasta, with our 10+ years of experience & 30+ offices in India, and we will do it for you, so you can avoid unnecessary headaches. Call us at +91 8750008585. You can also drop an e-mail at [email protected].

Do read:

DIR-3 KYC Complete Guide

Update DIR-3 KYC Details of Directors

ALL YOU NEED TO KNOW ABOUT DIN