1. DIRECTOR KYC REQUIREMENT
Hansraj Jaria
CS, LLB, M.COM, CAIIB
Practicing Company Secretary & Corporate Consultant
Ex-Company Secretary of a Tata Steel Group Company
Past Chairman – Hooghly Chapter of ICSI

2. DIRECTOR KYC
In order to implement its significant decision above, MCA vide Notification dated 5th July, 2018 has amended the Companies (Appointment and Qualification of Directors) Rules, by amending Rule 11 by insertion of sub-rules (2) & (3) and Introduction of New Rule 12A relating to ‘Directors KYC in e-Form DIR-3-KYC ’ which shall come into force from 10th July, 2018.

3. The Companies (Appointment and Qualification of Directors) Rules, 2014
Rule 12A: Every individual who has been allotted a Director Identification Number (DIN) as on 31st march of a financial year as per these rules shall, submit e-form DIR-3-KYC to the Central Government on or before 30th April of immediate next financial year.
Provided that every individual who has already been allotted a Director Identification Number (DIN) as at 31st March, 2018, shall submit eform DIR-3 KYC on or before 31st August, 2018."

4. The Companies (Appointment and Qualification of Directors) Rules, 2014
Rule 11(2): The Central Government or Regional Director (Northern Region), or any officer authorised by the Central Government or Regional Director (Northern Region) shall, deactivate the Director Identification Number (DIN), of an individual who does not intimate his particulars in e-form DIR-3-KYC within stipulated time in accordance with rule 12A.
Rule 11(3): The de-activated DIN shall be re-activated only after e-form DIR-3- KYC is filed along with fee as prescribed under Companies (Registration Offices and Fees) Rules, 2014.

5. PURPOSE OF DIRECTOR E KYC
The rational behind the introduction of this Form can be concluded by listing following points:
Improvement of transparency.
Reduction of Frauds likely to be committed by the Directors.
To safeguard stakeholders interest.
Restricting holding of more than one DIN by single Director.
Reducing cases of Bogus Directorships.
NOTE - Directors having disqualified DIN, also have to comply with the aforesaid requirement.

6. DIRECTOR IDENTIFICATION NUMBER (DIN)
DIN Number or Director Identification Number is a unique 8 digit number.
It is required by every individual who is or is proposed to be a Director in any Company.
DIN is not required for being a CEO, CFO, CS and Manager (KMP).
DIN is allotted by Central Government after making an application for allotment of DIN in e-Form DIR-3.
Once DIN is allotted it never expires.
DSC in the name of applicant must be acquired before applying for DIN.
DPIN is equivalent to DIN, which is required by person for becoming a Designated partner in LLP.
If the person is an existing DIN holder, then he does not need to apply for DPIN for becoming a Designated Partner in LLP.

7. REQUIREMENT FOR FILING FORM
Unique Personal Mobile Number
Personal ID
This shall be verified by One Time Password(OTP) on Id and Mobile number
One proof of Identity and one proof of Address is required like:
PAN
Aadhar card (Mandatory)
Driving License
Voter ID
Passport (mandatory in case of foreign nationals)
Following documents need to be attested by professional (CA, CMA & CS) :
Proof of Address and Proof of Identity

8. PERSONAL DETAILS OF DIRECTOR
List of documents / information's required for filing of DIR-3 KYC shall be as below:
Director Identification Number (DIN)
Full name of individual
Father’s Name(Even mandatory for married women)
Other basic details like Nationality, Citizenship details (whether a citizen of India or not)
Date of Birth
DSC of Director
Note: Having Aadhar is Compulsory for filing this form in case of Indian resident.

9. CERTIFICATION
The e-form DIR-3 KYC shall be certified, after verification and attestation of documents by professionals. It shall be digitally signed by such professionals like:
Practicing Chartered Accountant
Practicing Cost Accountant
Practicing Company Secretary
The Professional should keep a copy of the form for further reference
Form_DIR3-KYC.pdf
DIR-3 KYC Help.pdf

10. Penal Provisions

11. Penal Provisions
If an Individual files form after the due date, he/she will have to pay Rs. 5,000 as filing fee.
In addition to the above penalty, any wrong information provided in the form will also be liable for penalty under Section 448 and 449 of the Companies Act, 2013.
Further, a deactivated DIN means a person cannot act as a Director while his DIN is deactivated and any act done by him/her will be invalid and which might attract various penalties under Companies Act, 2013.

12. hansrajjaria@gmail.com (M) 9836400884
THANK YOU
(M)