DIRECTOR KYC: Understanding the Comprehensive Process (DIR-3-KYC/ DIR-3-KYC Web Form Guide)

Introduction:

The Ministry of Corporate Affairs (MCA) in India has implemented various measures to enhance transparency and ensure the authenticity of information related to directors of companies. One such initiative is the Director KYC (Know Your Customer), for which the Ministry has launched 2 numbers of e-forms i.e. DIR-3-KYC & DIR-3-KYC Web, the forms which directors are required to submit annually.

What is DIR-3-KYC/DIR-3-KYC Web?

DIR-3-KYC/DIR-3-KYC Web is a form introduced by the MCA for the purpose of updating the information of directors on an annual basis. It is mandatory for all individuals who have been allotted a Director Identification Number (DIN) to complete this KYC process whether such individuals have been associated with any company/LLP or not. 

Who has to file the e-form DIR-3-KYC ?

Individuals who have been assigned a Director Identification Number (DIN) is mandatorily required to file form DIR-3-KYC in the following scenarios:

  1. Initial Year Post-DIN Allotment: It is mandatory for individuals to file the DIR-3-KYC form in the financial year immediately following the one in which their DIN was first allotted.
  1. Annual Update in Subsequent Years: In each subsequent financial year, if in case there are any changes in personal information then there is a requirement of filing DIR-3-KYC.
  1. In the Event of DIN Deactivation: In case an individual’s DIN becomes deactivated due to non-filing of DIR-3-KYC , filing the DIR-3-KYC form becomes mandatory to reactivate.

Who has to file the E-form DIR-3-KYC Web ?

Individuals who have been assigned a Director Identification Number (DIN) is mandatorily required to file form DIR-3-KYC Web in the following scenario:

  1. Annual Update in Subsequent Years: In each subsequent financial year, if in case there are no changes in personal information then there is a requirement of filing DIR-3-KYC Web.
  1. In the Event of DIN Deactivation: In case an individual’s DIN becomes deactivated due to non-filing of DIR-3-KYC Web, filing the DIR-3-KYC form becomes mandatory to reactivate.
DIR-3 KYC

Due date of  DIR-3 KYC/DIR-3-KYC Web

Every individual who is allotted DIN in any financial year shall submit his KYC on or before 30th September of the immediately succeeding financial year.

Documents and Information Required to File Director KYC Form

Documents Required 

  1. PAN card
  2. Aadhaar card
  3. Passport (if available)

Information Required

  1. Current Residential Address
  2. Permanent Residential Address
  3. Nationality and Citizenship
  4. Occupation and Educational Qualifications
  5. Unique Personal Mobile Number and Email ID
DIR-3 KYC

Filing Procedure: 

Directors may submit their KYC form on the MCA21 portal by uploading necessary documents and filling the requisite e-form. They need to provide the OTP (Mobile & Email) for verification during this process.

Consequences of Non-Compliance

The non filing of KYC within the due date shall lead to DIN Deactivation and shall attract a penalty of ₹ 5,000/- upon renewal.

FAQs

  • Is DIR-3-KYC mandatory for all directors?
    DIR-3-KYC is mandatory for all directors to maintain accurate records and comply with regulatory standards.
  • Can I update director details after submitting DIR-3-KYC?
    Yes, you can update director details, emphasising the need for prompt updates to ensure accuracy.
  • Can I submit DIR-3-KYC online?
    Yes, the DIR-3-KYC/DIR-3-KYC Web form allows directors to complete the process online for convenience.
  • How often do I need to submit DIR-3-KYC?
    Directors are required to submit the DIR-3-KYC once in every year in between the period of 1st April to 30th September to ensure updated and accurate information.
  • Who signs the DIR-3-KYC form?
    The people who digitally sign the DIR-3-KYC form include the DIN holder and a certified professional like a CA, CS, or CMA. 
  • I got disqualified as a director. Do I have to fill out the DIR-3-KYC form?
    Yes, even if your DIN status is disqualified, you are still required to fill out the DIR-3-KYC form.
  • Can I submit the DIR-3-KYC form multiple times?
    No, the system does not allow submitting the DIR-3-KYC form more than once for the same person.

Conclusion:

The DIR-3-KYC/DIR-3-KYC Web initiative is a vital measure to ensure the accuracy and validity of information regarding company directors. It is essential for directors to submit this information in a timely manner to prevent any legal issues and to maintain the credibility of their roles. Directors should view compliance with the DIR-3-KYC requirements as a fundamental part of their professional responsibilities.

Legal Terminus (www.legalterminus.com) offers significant assistance in filling out the DIR-3-KYC form. Our expertise enables you to effectively handle the intricacies of the form submission process, ensuring compliance with all relevant regulations.

Disclaimer:

This article, dated February 01, 2024, provides a general overview of the Ministry of Corporate Affairs (MCA) guideline of India. It is not legal advice, and readers are encouraged to consult official sources or seek professional advice for the most current information and personal guidance. The author and publisher do not accept liability for errors or omissions in this article.

Prepared by

Mr. Smruti Ranjan Sahoo,

B.Com, LL.B.

 

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