Recently, the Ministry of Corporate Affairs (MCA) had notified the introduction of the new form i.e. DIR-3 KYC where every director holding Director Identification Number (DIN) has to update their personal details on an annual basis.
New Amendment on filing DIR-3 KYC:
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 once again file DIR-3KYC/DIR-3 KYC-Web/ACTIVE as the case may be between 1st April, 2020 to 30th September, 2020 without any filing fee of INR 5,000/INR 10,000 respectively.
Why File DIR-3 KYC Form?
- In the case of non-filing of DIR-3 KYC before due date, the director of the company will be disqualified and DIN status will be shown as ‘deactivated’ on the MCA portal.
- On deactivation status such director cannot become a director in any new company and cannot file any ROC form on time which may cause penalty on company as well.
- In order to reactivate DIN, such director shall have to pay a late fee of INR 5,000/-for DIN reactivation.
Note: There are no late fees on filing DIN KYC from the date of 1st April 2020 to 30th September 2020.
Who needs to file DIR-3 KYC form?
All the Directors and Partners of an LLP who have been allotted the Director Identification Number [DIN] require filing DIN-KYC on an annual basis.
Is it compulsory to file DIR-3 KYC?
Yes, it’s mandatory to be filed by all Directors who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status.
What if someone failed to file form DIR-3 KYC on due time?
After expiry of the due date by which the DIR-3 KYC form is to be filed, the MCA21 system will mark all approved DINs (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason as ‘Non-filing of DIR-3 KYC’.
Who can file KYC through DIR-3 KYC web-service?
Any DIN holder who has already submitted eForm DIR-3 KYC in any of the previous financial years and who does not require update in any of his KYC details as submitted, may perform his annual KYC by accessing DIR-3 KYC web service. No fee is payable up to the due date of each financial year.
What was the main objective of filing DIR-3 KYC?
The main motive behind filing the DIR-3 KYC form is to conduct annual KYC of the Directors of all the companies and LLP. This will update the ministry of company affairs database of all directors holding DIN. Earlier introduced as a one-time form, The MCA has now made this e-form mandatory to be filed on 30th April every financial year.
Note: The form DIR-3 KYC due date now been extended to 30th September 2020
What are the documents required for e-form DIR-3 KYC?
- DIN (Directors Identification Number)
- Name as per PAN Card
- Father Name as per PAN Card
- Nationality of the Director
- Residential Status of the Director
- Date of birth as per PAN
- Email Id
- Mobile Number
- PAN Details
- Permanent/present residential address
- Aadhaar Id/ Voter Id/ Passport/ Driving License
- Document to be attached for proof of Identity
- Document to be attached for proof of Address
- Passport is mandatory in the case of foreign nationals.
- Affixation of Digital signature certificate of the applicant
- Affixation of Digital signature Certification from the practicing Chartered Accountant or from the practicing Company Secretary or from the practicing Cost Accountant.
Who are the signatories in DIR-3 KYC form?
The DIN holder and a professional (CA/CS/CMA) certifying the form are the two signatories in form DIR-3 KYC.
Please note that in case of Citizens of India, the PAN mentioned in the DSC is verified with the PAN mentioned in the form.
In case of foreign nationals, the name in the DSC affixed should match with the name entered in the form. DSCs affixed on the form should be duly registered on the MCA portal.
Notice on MCA Website about amendment:
If any directors DIN status is “deactivated” as per MCA website, it’s a best opportunity to save on penalties of Rs.5, 000/ Rs. 10,000 before 30th September, 2020. As if DIN status is deactivated, this director will not able to sign any document on behalf of company while filing with MCA.