How to file Form DIR-3 KYC?

How to file Form 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 eForm DIR-3, which was initially a single-time process to be carried out by the one who wishes to become a director in one or more than one company.

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.

Important Update by MCA – “DIN holders of DINs marked as ‘Deactivated’ due to non-filing of DIR-3KYC/DIR-3 KYC-Web and those Companies whose compliance status has been marked as “ACTIVE non-compliant” due to non-filing of Active Company Tagging Identities and Verification(ACTIVE) e-form are encouraged to become compliant".  

Who Needs to File e-Form DIR 3 KYC?

According to the recent announcements by MCA, directors are required to submit his KYC details to the MCA if they meet the below-mentioned conditions:

  • Director Identification Number (DIN) was allotted to them by or on 31st March 2018
  • DIN is in approved status

Note: KYC is mandatory for the disqualified directors also.

Things to keep in mind while filing e-Form DIR-3 KYC

  • Director will have to provide their mobile number and email id while filing this e-form. This information will be verified by a One-Time-Password (OTP)
  • Directors will have to use their digital signatures for filing this e-Form
  • Directors will have to ensure that e-Form is certified by a Chartered Accountant or Cost Accountant or Company Secretary, practising the profession

Due Date and Penalty Charges for Not Filing DIR 3 KYC Form

When a director fails to file the e-Form by the due dates (or extended due date) on MCA 21 portal, the DIN of such director is marked as ‘Deactivated due to Non-filing of DIR-3 KYC’ by the department. In such cases, the director can re-activate his DIN by filing the missed out e-Form DIR-3 KYC after paying a late fine of INR 5,000.

Documents Required to File DIR 3 KYC Form

  • Details of Nationality
  • Details of citizenship like gender, date of birth etc.
  • Permanent Account Number (PAN)
  • Passport (compulsory when DIN holder is of foreign nationality)
  • Driving License
  • Aadhaar card
  • Personal Mobile and Email ID
  • Proof of Residential address.
  • Voters Identity card

Besides, above-mentioned documents, directors must also be prepared with the following things:

  • His digital signature to file the form
  • Attestation of above-mentioned documents by CA, CS, or Cost Accountants who are practising the profession. Attestation by the prescribed authorized person in case of Foreign nationalities
  • A declaration made by them (applicant/director) properly attested by CA, CS, or Cost Accountants who are practising the profession

Step-by-step Process to File DIR 3 KYC Form

Step 1: Download the form

  • First and foremost step is to download the DIR-3 KYC form from the MCA website

Step 2: Fill in the DIN details

  • Directors must fill in the DIN in the KYC form, whose status is ‘Approved’
  • 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

Step 3: Furnish the Required Details in the DIR- 3 KYC Form

Name & Relevant Credentials

The applicant must fill his first & last name and also the first & last name of his father. Few points to be kept in mind:

  • Director must enter his name which is mentioned in his PAN
  • Address furnished in the form will be authenticated with the PAN database
  • Single alphabets, Acronyms, and Short forms are not permitted

Nationality

  • A director needs to declare his nationality
  • Directors with foreign nationality must declare the nationality mentioned in his passport

Age Declaration

A director must enter his date of birth (DOB) in the DD/MM/YYYY format. Age declaration is mandatory because the person below the age of 18 years is ineligible to file this application.

Address

A director must mandatory enter his permanent residential address and attach a proof of permanent address. When the current residential address is different from the permanent residential address, it becomes compulsory to furnish the current residential address.

Note: A foreign pin code can be furnished only when the state selected is “NA”.

Step 4: PAN Verification

Permanent Account Number (PAN) verification is mandatory. First, a 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.

Note: The PAN furnished in the form should match with the PAN mentioned in the DSC for successful authentication. In case when the foreign nationals do not have a PAN, the name furnished in the form must match with the name mentioned in the DSC for successful authentication.

Step 5: Update Contact Details and Verify OTP

  • A director must update his contact details by entering his mobile number and e-mail address, which gets verified through an OTP
  • When a director enters these contact details, he needs to get them verified through an OTP by clicking on the ‘Generate OTP’ button after the submission of these details. Separate OTPs are sent for mobile number and email address
  • Only the directors who are not residents of India are allowed to enter the country codes other than +91/91/0
  • It should be noted that an OTP will successfully be sent to the mobile number & email address for a maximum of 10 times/day and twice in 30 minutes against one form

Attested Attachments to be made

Below-mentioned documents must be attested and uploaded by an applicant.

  • Proof of Permanent address
  • Other attachments needed under some conditions include
  • Proof of present address
  • Copy of Aadhaar Card
  • Copy of Passport

Note: Any other attachments must be digitally signed by the applicant.

Step 6: 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, practising the profession. Furnishing the details of the practising professional along with their digital signature is a crucial task which can not be avoided.

  • Click on the ‘Submit’ button, after a comprehensive proofread.

Procedure after e-form submission

Step 7: SRN Generation

Once the e-Form DIR-3 KYC is submitted successfully, an SRN is generated and allotted to the user for the future use correspondence with the MCA.

Step 8: Email communication

The applicant will receive an email that acknowledges the receipt of the form on his personal email ID.


FAQ

What is the purpose of filing Form DIR-3 KYC?

In certain instances, the Government found that either details furnished at the time of applying DIN were not true or the updated particulars of an individual acting as a Director is not available with the Government. In such a situation, it becomes difficult for the Government to enforce regulatory actions such persons in case of non-compliance or fraud. Therefore the objective behind KYC of individuals holding DIN is two fold , firstly to ensure updated data is available in the records of the Government in respect of every person who is holding DIN and secondly to deactivate DIN’s , which are not being used and where updated information is not available.

What is to be done, if you had filed Form DIR-3 KYC last year and there is a change in particulars filed thereafter?

  • In case an individual desire to update his personal mobile number or the e-mail address, he shall update the same by submitting Form DIR-3 KYC only.
  • In case an individual desire to update his permanent or present residential address, Passport Number, Nationality etc., he shall update the same by submitting Form DIR- 6 and on approval of Form DIR-6, verify the details through form DIR – 3 –KYC-WEB.

What are the consequences of not complying with the provisions of Directors’ KYC apart from payment of penalty?

On non-filing of DIR-3 KYC or verification of details on DIR-3 KYC Web, the DIN of the concerned individual will be deactivated. A deactivated DIN only restricts the Director from making e-compliances like filing of forms etc., i.e. wherever data is captured / verified online through DIN details. His actions as Director shall not be held invalid. He can be appointed/ re – appointed/resigned in a Company, however the compliance related to return of such appointment/resignation to be filed with the ROC (Form DIR-12) shall not be possible unless the DIN is re-activated by filing of DIR-3 KYC / DIR-3 KYC web.

For more information visit Taxaj
Posted by Mohini
Team Taxaj
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