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Directors KYC Event Based Compliances

DIR-3 KYC

INTRODUCTION (What Is DIR-3 KYC?)

Similar to banks and other financial institutions doing KYC of each of their customer before entering into any transaction with them to verify their identity, the Central Government also initiated to do the same by doing the KYC of every Director annually through the E-Form DIR-3 KYC (including disqualified director also) as well.

Accordingly, MCA issued an amendment to Companies (Appointment and Qualification of Directors) Rules, 2014 relating to filing of a yearly intimation about directors KYC and any changes therein vide notification dated July 5, 2018.

APPLICABILITY TO FILE DIR-3 KYC

It should be filed by every director whose DIN:

  • Is allotted as on 31st March of a financial year or
  • Is in approved state.

MODE OF DOING

  • For first time KYC of a Director who has been allotted a DIN as on 31st March of a financial year, E-Form DIR-3 KYC has to be filed on or on the other hand before 30th September of the quick next financial related year.
  • For the Directors whose DIR-3 KYC has already been done in the previous financial year the same can be done through DIR-3 KYC Web Service.

DIR-3 KYC WEB (if there is no change in the details of Director)

DIR-3 KYC Web service is launched by Ministry of Corporate Affairs whereby using a simple web-based form, the KYC of directors can be submitted within few minutes.

STEPS

  • We have to enter the DIN of the applicant in the web-based form.
  • Then the mobile number and email id given by the applicant will be verified by using an OTP which will be sent on the same number and Email id.
  • After that details of the applicant will be displayed which we have to confirm by clicking the submit button.
  • After successful submission of the web-based form, Challan of the transaction will be generated.
  • E-form DIR-3 KYC (Required for First time KYC of a Director)

DOCUMENTS REQUIRED FOR FILING DIR-3 KYC

  • Subtleties of Nationality and Citizenship subtleties like gender and date of birth.
  • Permanent Account Number (PAN)
  • Voters Identity card
  • Passport (required if a NRI is holding a DIN)
  • Driving License
  • Aadhaar card
  • Personal Mobile and
  • Personal Email Address
  • Residential address.

PROCEDURE TO FILE DIR-3 KYC FORM

  • Download the form from MCA
  • Enter DIN Details
  • Enter other details like name, father’s name, nationality, date of birth, address (should be permanent residential address and should also match with the proof of residential address attached), PAN number.
  • Enter personal mobile number and email id which will be verified by an OTP. (Separate OTPs will be sent to the versatile number and email ID)

(Note: OTP can be verified for a maximum of two times in 30 minutes subject to maximum of 10 times within a day.)

DOCUMENTS REQUIRED TO BE ATTACHED

  • Proof of permanent address (Copy of Aadhar, Voter Id card, Driving License, Passport, Bank Statement, Ration Card, Electricity Bill, Telephone Bill shall be attached as address proof and should be in the name of applicant only).
  • Copy of Aadhaar Card (Only to be attached if yes is selected in the field “Do you have Aadhaar”)
  • Copy of Passport (Only to be attached if yes is selected in the field “Do you have Valid
  • Passport”)
  • Proof of present address (Only to be attached if No is selected in the field “Whether present residential address is same as permanent residential address”)
  • Optional Attachment

CERTIFICATION

The E-Form DIR-3 KYC needs to be digitally certified by the applicant and a practicing Chartered Accountant or Cost Accountant or Company Secretary by using their digital signatures and entering their details like membership number, Certificate of Practice Number etc.

SRN: After the successful submission of the E-Form SRN will generate and an email acknowledging the receipt of the form will be sent to the personal email id given by the applicant.

CONSEQUENCE OF NON-FILING OF DIR-3 KYC

  • The Directors whose DIR-3 KYC will not be completed or filed within the stipulated time period then the Director Identification Number (DIN) of the respective director shall be deactivated and would be marked as “Deactivated due to non-filing of DIR-3 KYC” by Central Government or Regional Director (Northern Region), or any officer authorized by the Central Government or Regional Director (Northern Region) in accordance with Rule 12A for such non-filing.
  • Such deactivated DIN shall be re-activated only after filing of DIR-3 KYC along with the fee as prescribed under Companies (Registration Offices and Fees) Rules, 2014.

LATEST ANNOUNCEMENT OR UPDATE

Due to the situations persisting out of Covid-19, Government has given many relaxations to the stakeholders related to filing of various forms up to extended deadlines. One of which relates to filing of DIR-3 KYC/DIR-3 KYC Web also. Accordingly, the directors whose DIN has been tagged as “Deactivated” due to non-filing of DIR-3 KYC/DIR-3 KYC Web has an opportunity to reactivate their DIN status by filing the required forms up to 30th September without incurring any additional fees or penalty.

For the timely compliances and to keep yourself active in the eyes of law contact NeuSource Startup an expert consultant for regular compliances. To wrap up for any further information you may contact on the below mentioned details:

Email Id Swati@neusourcestartup.com and Phone Number 9540026175.

The NeuSource Startup Mind is the finest business startup consultant that offers various services of registration like Proprietorship Firm Registration, Partnership Firm Registration, LLP Registration, Company registration, GST Registration, Copyright Registration, ISO Registration Trademark registration and other FSSAI License etc.

03 Aug

Shivani Gupta
Shivani Gupta

“Starting Any Business Is A Formidable Journey Of A Lifetime!” NEUSOURCE ‘The Leader of Business registration’ clears the way for success in the present era by helping new startups. LET's GET STARTED!!