Understanding Director Identification Number & its Requirements

According to Sec 152(3) of Companies Act, an individual cannot serve as a director of a company unless they have been assigned the Director Identification Number under Section 154 or any other designated number as outlined in Section 153.

As per Sec 152(4), any individual being considered for directorship by a company, in it's General Meeting or by means must provide their DIN or any specified number as outlined in Section 153 and confirm that they are not barred from directorship under this Act.

Hence, To become a director, it is necessary to obtain DIN as mandated by the Companies Act of 2013.

DIN is a 8-digit ID number provided to a person, by the Ministry of Corporate Affairs to promote transparency in the corporate ecosystem by allowing regulatory authorities to maintain a comprehensive database of all directors. The database helps to track the director's involvement in corporate governance across different companies, including appointment, resignation and compliance with regulatory requirement

Directors are required to use their DIN for various filings and submissions with the MCA such as annual returns, financial statements, and other statutory MCA forms thereby ensuring proper compliance with regulatory obligations and promotes accountability in corporate governance.

Understanding Dir-3 KYC Form & Its Requirements

As per MCA, For the year 2018–19; Anyone who was assigned a "Director Identification Number (DIN/DPIN)” and has an 'Approved' status for that DIN on or before 31st March 2018 is required to submit form DIR–3 KYC to update their KYC details to the MCA by October 5th, 2018. 

Starting from the year 2019-20 onwards. Any Director who has received a Director Identification Number (DIN) by the end of the year or has an 'Approved' status for their DIN must submit form DIR-3 KYC before the 30th of September, in the following financial year. 

For example– For the Financial Year 2024-25, the directors who have been allotted a DIN or DPIN on or before 31st March 2025 shall file DIR-3 KYC (web-service form) before 30th September 2025.

Once the deadlines have passed by for each case and no DIR. 3 KYC has been submitted for compliant DIN numbers the system will label them as "Deactivated due, to failure to file DIR 3 KYC"

Types of DIR-3 KYC Form

The Form DIR-3 KYC is of two types, which are as follows:

Form DIR-3 KYC: This form is for the directors filing KYC details for the first time with MCA after allotment of DIN or whose details need to be updated or changed.

Form DIR-3 KYC (web service) - Directors who have already filed the e-Form DIR-3 KYC or DIR-3 KYC (web service) in the previous year and who do not require any change in his/her KYC details shall file annual KYC by submitting DIR-3 KYC web service. 

Key considerations for filing Form DIR-3 KYC web service

1. The following details are to be entered in the form:

• Name (as per PAN database)
• Father’s Name (as per PAN database)
• “Date of Birth (DoB)” (as per PAN database)
• PAN Number (mandatory for citizens of India)
• Personal Mobile number
• Personal Email Address
• Permanent/ Present address.
• Further, an Aadhaar is mandatory, if it is assigned. If not, then a Voter ID or Passport or Driving License must be attached.

2. The Director (Applicant) has to ensure that complete and right information is provided on the e-form and should sign the form with his Digital Signature Certificate.

3. The Director should get the webform certified by a practising Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant.

What are the documents required for form DIR-3 KYC web service

To file your DIR-3 -KYC form, you’ll need the following documents:

1. PAN Card. 
2. Aadhaar card.
3. Voter ID/Passport/Driving License (if Aadhaar not assigned)
4. Utility bills not older than 2 months, rental agreement, etc.
5. Digital Signature Certificate (DSC) of the director (applicant).
6. Membership number, Certificate of practise (COP) number of a practising CA, CS, or Cost Accountant along with their MCA registered DSC.

Process of filing Form DIR-3 KYC (web)

Let's understand the process of filing Form DIR-3 KYC (web)

Step 1: Open MCA website & Login

Open MCA homepage and click on the ‘Sign In/Sign Up’ button and login to your account with valid credentials. However, if you don't have an account, there is an option to register, just click on the ‘Register’ button & enter details and create your account.

Step 2: Open Form DIR-3 KYC web & validate using OTP

Once you have successfully logged into the MCA website, go to the tab ‘MCA Services’, then find the sub-section ‘Company e-Filing’, and then ‘DIN Related Filings’. After that, click on “Form DIR-3 KYC Web”. Within the form, enter the mobile number and email ID of the director along with the DIN number have to be submitted. After that, the director must receive OTP on the mobile number and the email submitted. Enter the OTP and proceed by clicking on ‘Next’.

Step 3: Fill out the form DIR-3 KYC (web)

Enter the following details as required in the form:

• Name
• Father’s name
• Nationality
• Date of birth
• Gender
• PAN number
• Contact info
• OTP which was sent to the mobile number
• Email address
• OTP which was sent to the email address
• Aadhaar number
• Permanent residential address
• Present residential address

Step 4: Upload Required Documents & Sign

Next, the director must upload the required documents. After documents are attached, the director must make the declaration that the information provided on the DIR-3 KYC (web) is correct and sign the document using his/her DSC. 

Step 5: Get it Certified

Then enter the details of the practising CA, CS, or Cost Accountant such as their name, membership number, and certificate of practise (COP)number and get the form digitally signed by them.

Fee for filing Form DIR-3 KYC web

If the Form DIR-3 KYC is filed within the due date of the respective financial year, no fee is payable. However, if it is filed after the due date, for DIN status ‘Deactivated due to non-filing of DIR-3 KYC’ a fee of Rs.5000(Rupees Five Thousand Only) becomes payable.