Introductory Norms of E-form DIR-3 KYC
Recently MCA (Ministry of Corporate Affairs) has introduced the new e-form DIR-3 KYC as per Rule 12A of ‘Companies (Appointment and Qualification of Directors) Fourth Amendment Rules 2018, via notification dated 05th July 2018 and came into effect from 10th July 2018. Along with this, MCA (Ministry of Corporate Affairs) has notified the restoration procedure for deactivated DIN (Director Identification Number) of the directors
Applicability of DIR-3 KYC
“DIR-3 KYC, Directors KYC update is applicable to every person who holds a valid din as on 31st March 2018″
Who needs to file DIR-3 KYC and procedure?
1.Do all director’s of all companies and partners of LLP to submit DIR 3KYC?
All Director’s holding DIN as on 31st March and it is applicable even to LLP partners and Director’s having Disqualified DIN, Inactive DIN also need to comply Mandatorily
2.Directors allotted DIN Prior to 31st March 2018, what are the mandatory requirement?
- Due date is 15th September 2018, for DIN allotted upto 31st March 2018, it’s a Annual Compliance, to be filed every year before 30th April
- The Mobile Number of the Director(Personal Number) and Email id of Director should be verified by one-time password
- Professional (CS/CA/CMA) need to certify that the details provided belong to the director
3.Consequences of Not filing DIR-3 KYC
- DIN will be “Deactivated” with reason as Non-filing of DIR-3 KYC
- Fixed penalty of Rs.5000/- for late filing
More importantly, while a DIN remains inactive, the director/partner will be unable to sign any compliance documents on behalf of any company/LLP. As most companies in India finalise their accounts and taxes in September, this could create substantial difficulties and non-compliances for companies whose directors have not submitted the DIR-3 KYC.
4. Is it still required to file E-form DIR-3 KYC if a DIN holder is not holding Directorship in any company for a whole year or years?
Yes, even if the DIN holder is not holding directorship in any Company for a year or for more than one year, such person has to file e-form DIR-3 KYC every financial year on or before 30th April.
5.Are there any special considerations for overseas directors?
For all foreign nationals who have a DIN, their passport number is to be mentioned in the form compulsorily. Passport details are not compulsory for Indian residents but they must provide them if they have a passport.
In case of foreign nationals, the supporting documents also need to be attested by the authority prescribed. These documents are:
- Copy of Passport: A postilled copy is mandatory for foreign nationals
- Copy of proof of residence with the individual’s name on it (any 1 out of: Bank Statement/ Electricity bill/ Telephone bill/ Mobile bill, not older than 1 year)
- Driving License
These supporting documents should be attested by the Consulate of the Indian Embassy or a foreign public notary.
Compulsory Attachments For other than Foreign Nations
- A self-attested copy of Income Tax Permanent Account Number or PAN (which is verified with the Income Tax website) (mandatory for Indian nationals)
- Aadhar card (mandatory for Indian nationals)
- Passport: A self-attested copy is optional for Indian nationals
- Permanent residential address
- Present residential address if it is different from permanent residential address
- Voter Identity Card Number (optional)
- Driving License (optional)
- Certification of DIR-3 KYC- DSC of practicing professional (CA/CS/CMA)
- Other Mandatory Information which is required in DIR-3 is – Unique Personal Mobile Number, Personal Email ID, One time Password (OTP) on Email ID and OTP on Mobile No
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