What is DIR-3 KYC & How often it needs to be Done?

What is DIR-3 KYC & How often it needs to be Done?

What is DIR-3 KYC?

DIR-3 KYC is a new form launched by the MCA. This form will be used to update the KYC of all directors. As per the provisions of Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, every individual who is allotted DIN as of 31st March of a financial year must submit his KYC on or before 30th September of the immediately next financial year.

Following is the list of required documents to file DIR-3 KYC:
1) Proof of permanent address- Copy of Electricity Bill, Aadhaar Card
2) Copy of Aadhar card & Passport are mandatory if it is assigned
3) Proof of present address(if it is different from permanent address)- Copy Electricity Bill, Rent Agreement
4) Optional Attachment if any- Copy of Pan card, Voter’s ID Card
5) Applicant’s Digital Signature

All above-mentioned documents should be self-attested.
Price/Charge of such institution
Form DIR-3 KYC, if filed within the due date of the respective financial year, no fee is payable. However, if filed after the due date, for DIN status ‘Deactivated due to non-filing of DIR-3 KYC’ a fee of Rs 5000/- shall be payable
If any false information provided in the form shall be punishable u/s 448 & 449 of the companies act,2013

Presidents gives Assent to Companies Act, 2013 The Companies Bill, 2013 Receives the Assent of the President Published in the Gazette of India as Act No. 18 of 2013 The historic new Company Law in the country has been enacted with the President of India giving his assent to the Companies Bill, 2013. It has now been published in the Gazette of India, Extraordinary, Part-II, Section-1, dated the 30th August 2013 as Act No. 18 of 2013. 

Overview of Director’s KYC Process – DIR-3 KYC

Director identification number (DIN) refers to a unique identification number allotted to an individual who is willing to be a director or is an existing director of a company. DIN is obtained by filing an application in e-Form DIR-3. However, now with an update in MCA’s registry, it becomes mandatory for all directors having DIN to submit their KYC details in e-Form DIR 3 KYC every year.

A. Requirement to file DIR-3 KYC form

Every Director who has been allotted DIN on or before the end of the financial year, and whose DIN status is ‘Approved’, would be mandatorily required to file form DIR-3 KYC before 30th September of the immediately next financial year. After the expiry of the respective due dates, the system will mark all non-compliant DINs against which the DIR-3 KYC form has not been filed as ‘Deactivated due to non-filing of DIR-3 KYC’.

B. Types of Director KYC Process

• KYC through e-Form DIR-3 KYC

Any DIN holder who is filing his KYC details for the first time with MCA must file all KYC details only through e-Form DIR-3 KYC. There is no option for such a person to access the web service for his KYC. Further, any DIN holder who wants to update any information of his KYC details must update the same through the filing of e-Form DIR-3 KYC only. Please note that no update in details can be made by accessing the web service for DIR-3 KYC.

• KYC through DIR-3 KYC web-services

Any DIN holder who has already submitted e-Form DIR-3 KYC in any of the previous financial years and who does not require an update in any of his KYC details as submitted may perform his annual KYC by accessing the DIR-3 KYC web service.

C. Due Date of Filing DIR-3 KYC and its penalty for Non-Compliance

As per the provisions of Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, every individual who is allotted DIN as of 31st March of a financial year must submit his KYC on or before 30th September of the immediately next financial year.

Penalty:
If the DIN holder does not file his annual KYC within the due date of each financial year, such DIN shall be marked as ‘Deactivated due to non-filing of DIR-3 KYC and shall remain in such Deactivated status until KYC is done with a fee of Rs.5000.

D. Process of Filing Form DIR-3 KYC Form

  1. The First step is to download the DIR-3 KYC form from the MCA website. 
  2. Directors must fill in the DIN in the KYC form, whose status is ‘Approved’ and Directors with deactivated DIN because of non-filing of KYC Form, can fill the form after the prescribed due date by paying late filing charges  Furnish the Required Details in the DIR- 3 KYC Form
  3. Director must enter his PAN and then click on the ‘Verify income-tax PAN’ button. Then, the system verifies the details of the director on the basis of the PAN card number.
  4. Update Contact Details and Verify OTP
  5. Authentication of e-Form- Directors must ensure that the e-Form is authenticated which means it is digitally signed by a Chartered Accountant/Cost Accountant, or a Company Secretary, practicing the profession. Furnishing the details of the practicing professional along with their digital signature is a crucial task that cannot be avoided.

E. Documents and Information Required to File DIR 3 KYC Form

  1. Permanent Account Number (PAN)
  2. Aadhar Card
  3. Passport (compulsory when DIN holder is of foreign nationality)
  4. Driving License
  5. Personal and Unique Mobile Number and Email ID
  6. Proof of Residential Address
  7. Details of Citizenship, Gender, Date of Birth.
Created & Posted By Ravi Kumar
CA  Article at TAXAJ

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