All about Form DIR-3 KYC: Applicability, Due Date, Penalty and requirements

WHY TO FILE E-FORM DIR-3 KYC?

In recent times; Government of India in its quest for good corporate governance and ease of doing business has been making many changes and implementing new compliances under the Companies Act, 2013. The latest to join this list is a requirement to file the e-form DIR-3 KYC with the MCA.

In pursuant to Rule 12A and Rule 11(2) and (3) of the Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2018 The Ministry of Corporate Affairs as a part of updating its registry would be conducting KYC of all existing DIN/DPIN Holders annually through the e-form DIR-3 KYC.

Form DIR-3 KYC of Directors

 

In the amended rules; it is nowhere written the purpose behind conducting this annual KYC i.e Know your customer of Directors.

However, one can think of the following benefits of Government’s this initiative towards better governance:
  1. Eroding Duplication of DIN: There are cases of Multiple DINs of a single person in the MCA’s registry; possibly from it’s earlier time when MCA Digital platform was launched back in 2006. In those cases when a single DIR-3 KYC form will be filed against a single DIN; remaining unused DINs shall automatically get de-activated at the end of the due date.
  2. DIN De-activation of deceased persons: All the deceased persons’ DINs shall automatically get canceled upon non-filing of e-form DIR-3 KYC.
  3. Updating of Personal Mobile No. and Email ID of all existing DIN holders in the MCA database.
  4. Updating and cross verification of PAN cards, AADHAR Cards and other KYC related documents of all existing DIN holders.
  5. DIN De-activation of all non-active DIN numbers; leading to better governance.

If you don’t want to read the whole article and only want to know the basic facts jump to FAQs TO FILING OF E- FORM DIR-3 KYC or continue reading the whole post!

WHEN TO FILE E-FORM DIR-3 KYC:

The due date for filing of the e-form DIR-3 KYC:

For the Financial Year 2017-18: 31st August 2018

For the Subsequent Financial Years: 30th April of immediate next Financial Year.

WHO IS REQUIRED TO FILE THIS FORM FOR F.Y 2017-18:

  1. All existing Directors holding DIN as on 31st March 2018
  2. All the Designated Partners/ Partners holding DIN as on 31st March 2018
  3. All the Disqualified Directors

“Disqualified Directors” covers all those directors whose DIN is already De-activated due to Strike-off of the Companies in which they were Directors.

WHAT WILL HAPPEN IN CASE OF LATE FILING:

If the eligible DIN holder files the e-form DIR-3 KYC after the Due date; then he shall have to pay the penalty of Rs. 5000/- (Rupees Five Thousand only) to activate his DIN number without prejudice to any other action that may be taken.

WHAT SHALL BE THE CONSEQUENCES OF NON-FILING:

    • If the eligible DIN holder fails to file the e-form DIR-3 KYC within the due date then his DIN shall become de-DIN De-activated!activated or invalid or dead.
    • Due to DIN de-activation that Director or Designated Partner will not be able to act as Director in any of their existing Companies or LLPs.
    • Due to DIN de-activation, the DIN holders will not be able to form any new companies or LLPs.
    • Where all the Directors in a Company fails to comply with this requirement; it will be impossible to file any Company returns and other required documents with the Registrar of Companies leading to several other impending non-compliances.

See

FAQs TO FILING OF E- FORM DIR-3 KYC:

1    What is the Purpose of filing this form?

Updating the DIN registry

2    Who is Applicable to file this form?

  • Every Director who has been allotted DIN on or before 31st March, 2018.
  • Every Disqualified Director

3 What is the Deadline for filing the e-form DIR-3 KYC?

  • For F.Y 2017-18: On or before 31st August 2018
  • Subsequent F.Y: 30th April of the immediate Next financial year

4    What are the Consequences of Non-filling?

DIN will be De-activated

*MCA21 system will mark all approved DINs (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason as ‘Non-filing of DIR-3 KYC’

5    What are the Consequences of Late-filing?

If Form DIR 3 KYC is filed after 1st September 2018 then DIN can be Reactivated only after payment of penalty Rs. 5000/- (Rupees Five Thousand Only) without prejudice to any other action that may be taken.

6    Whether Verification and Certification required?

Ans: Yes. Unique mobile no and Unique Email ID of DIN holder will be verified by One Time Password (OTP).

The Form DIR-3 KYC will be required to be duly certified by the Director and Practising Professional.

7    Whether Designated Partners of LLPs required to file this form?

Yes. Every Designated Partner who has been allotted DIN on or before 31st March 2018 and whose DIN is in ‘Approved’ status, would be mandatorily required to file form DIR-3 KYC on or before 31st August 2018.

8    Whether DSC of the DIN holder is required for filing the e-form DIR-3 KYC?

Yes. Duly registered DSC of the DIN holder is required.

9    What other documents are required for filing this form?

  •  Self Attested PAN Card *Mandatory for Indian Nationals
  • Self Attested AADHAR Card *Mandatory for Indian Nationals
  • If Present address is different than mentioned in AADHAR then Self Attested latest Bank Statement/ Electricity bill/ Telephone Bill/ Mobile Bill/ Passport. (Passport mandatory if possessing)
  • Unique Personal Mobile No.
  • Unique Personal Email Id

10    What documents are required additionally in case of Non-resident Indians or Foreign Nationals?

In the case of Non-Resident Indians, a valid Passport is mandatory

So file form DIR-3 KYC as soon as possible to avoid getting your DIN cancelled or bearing heavy penalties in case of late filing. Let me know what you think of this article in the comments below and if you liked it then share with your friends as well!

Disclaimer

The information given in this Post is of the general nature and based on my understanding and knowledge of the subject. The post or reply to any queries or comments do not constitute as legal opinion or advice to viewers. They are meant to provide awareness of legal provisions, compliances and procedures and are procured solely for knowledge sharing purposes. Although the content of the post or reply to queries or comments is deliberate; there is no guarantee that they are up-to-date, current, accurate or complete in any manner and in no way should be taken as legal advice. Hence, I will not be held responsible for any decisions or conclusions taken in reliance on the information provided herein. You are advised to consult a professional before acting on the information provided herein. Viewer may print or share the post on social media as long as it is for personal and educational usage only.

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