DIN KYC: Procedure, Due Date, DIN KYC Status and Consequences/ Penalty of Non-Filing

DIN KYC: Procedure, Due Date, DIN KYC Status and Consequences/ Penalty of Non-Filing. DIN KYC
To boost the compliance and to weed out the bogus directorships of directors in various companies, Ministry of Corporate Affairs (MCA) has come up with the KYC process of all the directors (including those directors who had been disqualified) on an annual basis. In order to implement its decision, MCA has amended the Companies (Appointment and Qualification) Rules, 2014 by introducing new Rule 12A to the rules.
Erstwhile, there was a single window clearance for any individual who is desirous to be appointed as a director in the company. Now in this era of digital world, everything is becoming digital and easy. Henceforth, MCA has been come up with DIN KYC for ensuring proper compliance and timely in the companies.
Director Identification Number (DIN):
Director Identification Number (DIN) refers to a unique identification number which is provided to every individual, who intends to be appointed as a Director of a company. He has to submit an application in the electronic form i.e. in E-Form DIR-3 along with such fees as prescribed in the rules to the Central Government for allotment of Director Identification Number (DIN).
Director KYC:
MCA vide their notification dated July 05, 2018 introduced new Rule 12A in the Companies (Appointment and Qualification of Directors) Rules, 2014 which relates to Director KYC. The said rule was effective from July 10, 2018 which commends that:
“Every individual who holds a Director Identification Number (DIN) / Director Partner Identification Number (DPIN)  as on 31st March of a financial year as per the rules shall, submit e-form DIR-3 KYC for the said financial year to the Central Government on or before 30th September of immediate next financial year.
Provided that every individual who has already been allotted a DIN / DPIN as at 31st March, 2018, shall submit e-form DIR-3 KYC on or before 5th October, 2018.
Provided further that where an individual who has already submitted e-form DIR-3 KYC in relation to this in previous financial year, shall submit web-form DIR-3 KYC-WEB through the web service in relation to any subsequent financial year, it shall be deemed to be compliance of the provisions of this rule for the said financial year.
Provided that if an individual desirous to update his personal mobile or e-mail address, as the case may be, he shall update the same by submitting e-form DIR-3 KYC only.”
Crux of the Rule:

Filing of E-Form DIR-3 KYC is an annual compliance which has to be abided in every financial year, by every individual who holds DIN / DPIN as on 31st March of the financial year.

Where an individual who has already filed e-form DIR-3 KYC in the previous financial year and there is no details to be updated, they only need to submit web-form DIR-3 KYC-WEB through the web service.

In case an individual desirous to update his personal mobile number or the e-mail address or both, he is required to file e-form DIR-3 KYC.

In case, there is updation in any other personal detail apart from personal mobile number or e-mail address, he is required to file e-form DIR-6 for updation of the same before completion of KYC through Web based service.

Due Date of DIN KYC:
Due date of filing e-form DIR-3 KYC or web form DIR-3 KYC through the web service, as the case may be, for any financial year is 30th September of that year.

Illustration: For the financial year 2020-21, every individual who holds DIN / DPIN and the individual who has been allotted DIN / DPIN by 31st March, 2021, all of them were required to complete DIN KYC on or before 30th September, 2021.

If you have missed filing by Sep 30, you need to pay Rs. 5000/- to get the approved status of the DIN as on date unless MCA comes up with some scheme for waiver of fees.

Note: Directors having disqualified DIN, also have to comply with the aforesaid requirement.
How to file DIN KYC:
There are two ways for filings DIR-3 KYC as discussed above, director who holds DIN / DPIN as on 31st March of the financial year and there is no change in the details then he has to file Web based DIR-3 KYC for verification purpose. If the individual who has been allotted DIN / DPIN during the financial year then they have to file E-Form DIR-3 KYC.
The director who holds DIN / DPIN and filing his KYC details for the first time, they are required to file E-Form DIR-3 KYC and in case of updation of detail related to personal mobile number or e-mail address then also they will be required to file E-Form DIR-3 KYC. The step-wise procedure is defined as follows:
a) Step-wise filing of Web based DIR-3 KYC:

Go to MCA website (mca.gov.in)

Click on MCA Services Tab

Circumnavigate to – DIN Services – “DIR-3 KYC WEB”

Enter DIN number and submit

Generate OTP’s for E-mail ID and Mobile Number

Enter the respective OTP’s in the respective fields

Approve the details appearing on the screen

Click on Submit button

Generate Zero Rupee Challan

Check status of SRN for KYC Verification

b) Step-wise filing of E-Form DIR-3 KYC:
- Pre-requisite documents required to file DIR-3 KYC:

Copy of PAN Card

Copy of Aadhaar Card

Copy of Passport

Copy of Driver’s License (optionally)

Mobile Number (linked with Aadhaar Card)

E-mail address

Digital Signature Certificate is mandatory

- Download the E-Form DIR-3 KYC from MCA website (mca.gov.in)- Enter the DIN details- Enter the appropriate details as required in the form

Name and relevant credentials

Nationality

Date of Birth

Residential address

Verification of PAN

Contact details i.e. personal mobile number and e-mail address for generation of OTP

- Attachments required:
The applicant must upload the following documents. All the documents must be self-attested by the applicant before uploading:

Proof of permanent address

Copy of Aadhaar Card

Copy of Passport

Proof of Present Address

Other Attachments as required case to case basis

- The form must be signed by a Practicing Chartered Accountant/Company Secretary/Cost Accountant. It is important to enter the details of the professional before digitally signing the form.- Submit the Form- Generate the SRN- Email communication for approval of the Form
DIN KYC Status:
Every director who files e-form DIR-3 KYC or web form DIR-3 KYC as the case may be, on timely basis i.e. on or before 30th September, the status of DIN will be shown as “Approved” or “Active”. In case of non-filing of the said e-form by the director, then the status of DIN will be shown as “De-Activated”. 
Consequences of Non-Filing:
On non-filing of e-form DIR-3 KYC or web form DIR-3 KYC as the case may be, the DIN / DPIN of the concerned individual will be deactivated. Deactivation of DIN / DPIN of the individual only restricts him from making compliances of various e-forms i.e. wherever there is online fetching of information of a director, he will not be allowed to file the same on the portal. As a Director his actions will not be held invalid. He can be appointed / resigned from a company; however the compliance related to return of such appointment/resignation which is to be filed with the ROC in e-form DIR-12 shall not be possible unless the DIN / DPIN is re-activated by filing of e-form DIR-3 KYC/web form DIR-3 KYC.
Penalty for Non-Filing:
There is no penalty for non-compliance of DIN KYC. There is a fee of Rs. 5000/- for delayed filing of e-form DIR-3 KYC / web form DIR-3 KYC.
Connect with Compliance Calendar LLP:
In case of any queries or doubts or for any assistance you can connect with us from our website i.e. www.compliancecalendar.in or you can ask your queries related to DIN KYC or any other compliance assistance by simply dropping mail at info@ccoffice.in or WhatsApp/ Call at 9988424211You can avail our other services related compliance or other matters like registration under various laws etc. We will be delighted to serve you in this process.

DIN KYC

To boost the compliance and to weed out the bogus directorships of directors in various companies, Ministry of Corporate Affairs (MCA) has come up with the KYC process of all the directors (including those directors who had been disqualified) on an annual basis. In order to implement its decision, MCA has amended the Companies (Appointment and Qualification) Rules, 2014 by introducing new Rule 12A to the rules.

Erstwhile, there was a single window clearance for any individual who is desirous to be appointed as a director in the company. Now in this era of digital world, everything is becoming digital and easy. Henceforth, MCA has been come up with DIN KYC for ensuring proper compliance and timely in the companies.

Director Identification Number (DIN):

Director Identification Number (DIN) refers to a unique identification number which is provided to every individual, who intends to be appointed as a Director of a company. He has to submit an application in the electronic form i.e. in E-Form DIR-3 along with such fees as prescribed in the rules to the Central Government for allotment of Director Identification Number (DIN).

Director KYC:

MCA vide their notification dated July 05, 2018 introduced new Rule 12A in the Companies (Appointment and Qualification of Directors) Rules, 2014 which relates to Director KYC. The said rule was effective from July 10, 2018 which commends that:

“Every individual who holds a Director Identification Number (DIN) / Director Partner Identification Number (DPIN) as on 31st March of a financial year as per the rules shall, submit e-form DIR-3 KYC for the said financial year to the Central Government on or before 30th September of immediate next financial year.

Provided that every individual who has already been allotted a DIN / DPIN as at 31st March, 2018, shall submit e-form DIR-3 KYC on or before 5th October, 2018.

Provided further that where an individual who has already submitted e-form DIR-3 KYC in relation to this in previous financial year, shall submit web-form DIR-3 KYC-WEB through the web service in relation to any subsequent financial year, it shall be deemed to be compliance of the provisions of this rule for the said financial year.

Provided that if an individual desirous to update his personal mobile or e-mail address, as the case may be, he shall update the same by submitting e-form DIR-3 KYC only.”

Crux of the Rule:

Filing of E-Form DIR-3 KYC is an annual compliance which has to be abided in every financial year, by every individual who holds DIN / DPIN as on 31st March of the financial year.
Where an individual who has already filed e-form DIR-3 KYC in the previous financial year and there is no details to be updated, they only need to submit web-form DIR-3 KYC-WEB through the web service.
In case an individual desirous to update his personal mobile number or the e-mail address or both, he is required to file e-form DIR-3 KYC.
In case, there is updation in any other personal detail apart from personal mobile number or e-mail address, he is required to file e-form DIR-6 for updation of the same before completion of KYC through Web based service.

Due Date of DIN KYC:

Due date of filing e-form DIR-3 KYC or web form DIR-3 KYC through the web service, as the case may be, for any financial year is 30th September of that year.

Illustration: For the financial year 2020-21, every individual who holds DIN / DPIN and the individual who has been allotted DIN / DPIN by 31st March, 2021, all of them were required to complete DIN KYC on or before 30th September, 2021.
If you have missed filing by Sep 30, you need to pay Rs. 5000/- to get the approved status of the DIN as on date unless MCA comes up with some scheme for waiver of fees.

Note: Directors having disqualified DIN, also have to comply with the aforesaid requirement.

How to file DIN KYC:

There are two ways for filings DIR-3 KYC as discussed above, director who holds DIN / DPIN as on 31st March of the financial year and there is no change in the details then he has to file Web based DIR-3 KYC for verification purpose. If the individual who has been allotted DIN / DPIN during the financial year then they have to file E-Form DIR-3 KYC.

The director who holds DIN / DPIN and filing his KYC details for the first time, they are required to file E-Form DIR-3 KYC and in case of updation of detail related to personal mobile number or e-mail address then also they will be required to file E-Form DIR-3 KYC. The step-wise procedure is defined as follows:

a) Step-wise filing of Web based DIR-3 KYC:

Go to MCA website (mca.gov.in)
Log in to your MCA account
Click on MCA Services Tab
Circumnavigate to – DIN Services – “DIR-3 KYC WEB”
Enter DIN number and submit
Generate OTP’s for E-mail ID and Mobile Number
Enter the respective OTP’s in the respective fields
Approve the details appearing on the screen
Click on Submit button
Generate Zero Rupee Challan
Check status of SRN for KYC Verification

b) Step-wise filing of E-Form DIR-3 KYC:

- Pre-requisite documents required to file DIR-3 KYC:

Copy of PAN Card
Copy of Aadhaar Card
Copy of Passport
Copy of Driver’s License (optionally)
Mobile Number (linked with Aadhaar Card)
E-mail address
Digital Signature Certificate is mandatory

- Download the E-Form DIR-3 KYC from MCA website (mca.gov.in)

- Enter the DIN details

- Enter the appropriate details as required in the form

Name and relevant credentials
Nationality
Date of Birth
Residential address
Verification of PAN
Contact details i.e. personal mobile number and e-mail address for generation of OTP

- Attachments required:

The applicant must upload the following documents. All the documents must be self-attested by the applicant before uploading:

Proof of permanent address
Copy of Aadhaar Card
Copy of Passport
Proof of Present Address
Other Attachments as required case to case basis

DIN KYC Status:

Every director who files e-form DIR-3 KYC or web form DIR-3 KYC as the case may be, on timely basis i.e. on or before 30th September, the status of DIN will be shown as “Approved” or “Active”. In case of non-filing of the said e-form by the director, then the status of DIN will be shown as “De-Activated”.

Consequences of Non-Filing:

On non-filing of e-form DIR-3 KYC or web form DIR-3 KYC as the case may be, the DIN / DPIN of the concerned individual will be deactivated. Deactivation of DIN / DPIN of the individual only restricts him from making compliances of various e-forms i.e. wherever there is online fetching of information of a director, he will not be allowed to file the same on the portal. As a Director his actions will not be held invalid. He can be appointed / resigned from a company; however the compliance related to return of such appointment/resignation which is to be filed with the ROC in e-form DIR-12 shall not be possible unless the DIN / DPIN is re-activated by filing of e-form DIR-3 KYC/web form DIR-3 KYC.

Penalty for Non-Filing:

There is no penalty for non-compliance of DIN KYC. There is a fee of Rs. 5000/- for delayed filing of e-form DIR-3 KYC / web form DIR-3 KYC.

Connect with Compliance Calendar LLP:

In case of any queries or doubts or for any assistance you can connect with us from our website i.e. www.compliancecalendar.in or you can ask your queries related to DIN KYC or any other compliance assistance by simply dropping mail at info@ccoffice.in or WhatsApp/ Call at 9988424211

You can avail our other services related compliance or other matters like registration under various laws etc. We will be delighted to serve you in this process.