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All you need to know about Director KYC

All you need to know about Director KYC

Legal & Compliance

Shruti Aggarwal

Shruti Aggarwal

16 Aug 2018, 13:01 — 5 min read

The Ministry of Corporate Affairs (MCA) by it notification dated July 5, 2018 has notified the Companies (Appointment and Qualification of Directors) fourth Amendment Rules, 2018”. The rules require that every person holding DIN (Director Identification Number) must get his/her KYC updated within the due dates provided in the rules.

Here are the specifics of Director KYC and all that it entails.

Effective date of Notification: July 10, 2018.

Purpose of the Rules: To update KYC of all persons having DIN irrespective of the fact if such person is holding any directorship or not. It is pertinent to note here that disqualified directors are also required to file this form as per the time schedule given below.

Applicability: All persons whether Indian residents or NRI or foreign nationals are required to file the form with the MCA.

Time Limit:

  • At the time of Commencement of the rules: The persons who have been allotted DIN till 31.03.2018 are required to file the E-Form DIR-3 KYC with MCA by 31.08.2018.

  • Yearly KYC Compliance from FY 2019-2020 onwards: The persons holding DIN shall file DIR-3 KYC with MCA on a yearly basis. Therefore, all persons having DIN as on 31st March of the previous FY shall file this E-Form on or before 30th April of the current FY.

Filing Fees: There is no government fee for filing the form on MCA, provided that the form is being filed within the specified time limit. Or else the form shall be filed with a fee of Rs. 5,000.

Effect of non-filing: After the said due dates the DIN shall be marked as deactivated with reason “Non-filing of DIR-3 KYC”. And the person shall not be eligible to use the DIN till the KYC is completed. The deactivated DIN shall only be activated after the Form DIR-3 KYC has been filed with MCA with the fees.

 

Features of the Form:

  1. PAN Card: For Indian nationals PAN is mandatory to file this form.

  2. All data provided in DIR-3 KYC shall be as per the data provided with Income tax department. In case there is any difference the person should update the PAN data before filing the form DIR-3 KYC.

  3. Name: The Person shall fill his/her full name and not abbreviations. The full name should be same as provided in the documents attached for identity and address proof.

  4. Father’s Name: It is compulsory to give father’s name. It may be noted that using ‘Late’ for deceased person is not required. Further married women are also required to provide her father’s name in the form.

  5. Passport: For Foreign nationals with DIN, it is compulsory to have Passport and the number of the same should be provided in the form. For Indians it is not mandatory but if the person has a passport the details of the same should be provided.

  6. Aadhaar: Having Aadhaar is compulsory for filing this Form. The details provided in Aadhaar should match with both PAN details and the DIN details. In case your Aadhaar is not updated please get the same done at the earliest.

  7. Mobile & Email ID: Person should provide his/her personal working mobile number and personal working email ID. An OTP shall be sent by MCA on the mobile number and email ID provided. The OTP shall be used for verification purpose.

  8. Present Residential Address: Residential address of the person should be as per the address proof documents attached with the form. The permanent address may or may not be same as the present address.

Attachments:

1.  Proof of identity: PAN Card/ Passport/ Aadhaar

The document must have applicant and his/her father’s full name along with photograph of the applicant and their date of birth.

2.  Proof of address (present address): Passport, Aadhaar Card, Voter Identity Card, Driving License and other documents as may be allowed by MCA.

Signature: The form has to be digitally signed by the applicant themselves using Class 2 – Digital Signature. It should be noted that before filing the form the DSC should be registered via role check with MCA.

Note: Any discrepancy may lead an action against the person u/s 448 of the Companies Act, 2013 under relevant provisions of the Indian Penal Code, 1860.

CertificationThis form should be certified after verification of the documents in originalby the CA/CS/CMA in practice.

 

Ensure that you do your Director KYC in time and avoid any disqualifications and penalties.

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Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker. 

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