All about form DIR-3 KYC Application for KYC of Directors

If you have been allotted a Director Identification Number i.e. DIN, the DIN holder must submit a DIR-3 KYC every year. KYC of directors is required to be updated annually by September 30 on the MCA portal as part of regulatory compliance. Be it DIR-3 KYC FORM or DIR-3 KYC WEB submission, a team of qualified CS is here to take care of KYC submission. Let us discuss all forms of DIR-3 KYC and the application for KYC of directors.

What is Director Identification Number?

A Director Identification Number (DIN) is a unique identification number assigned to a person who wants to be a director or an existing director of a company. In this digitized era, an application in the electronic form of DIR-3 was sufficient to obtain a DIN. It was a one-time process for anyone who wanted to be a director in one or more companies. However, now with the move by the Ministry of Corporate Affairs (MCA) to update its register, all directors with DINs will have to submit their KYC details in e-Form DIR-3 KYC every year.

Purpose of DIR-3 KYC Form

As mentioned above, every director is required to inform all the companies in which he is a director of the allotted DIN in Form DIR-3B within 30 days of receiving the notification of approval of the DIN. Similarly, the company secretary and manager will share their Income Tax Permanent Account Number (PAN) with the company. The company needs further information about the DIN of the directors to the registrar in form DIR-3C within 15 days of receiving the notice.

Who has to file DIR-3 KYC in electronic form?

As per the recent MCA notification, every director who has been allotted a DIN on or before 31st March 2018 and whose DIN is in approved status will have to submit their KYC details to MCA. Furthermore, this procedure is also mandatory for disqualified directors.

From the financial year 2019-20, it is mandatory for every director who has been allotted a DIN on or before the end of the financial year and whose DIN is in approved status to file the DIR-3 KYC form by 30th September of the immediately following financial year.

Checkpoints for submission of e-form DIR-3 KYC

• Each director will be required to provide a unique personal mobile number and email address while completing the electronic form. This number and email address will be verified with an OTP (One Time Password).
• The second control introduced here would be that the director must use his digital signature when completing this electronic form.
• Furthermore, a third test to ensure that full and correct information is provided will be that the e-Form should be verified by an experienced Chartered Accountant, Company Secretary, or Cost and Management Accountant.

The Consequence of not submitting the DIR-3 KYC by the specified due date

In case the director who is required to file the e-Form fails to file it on the MCA 21 portal by September 30, the department will mark the DIN of the such director as “Deactivated due to non-submission of DIR-3 KYC”. If the director wishes to reactivate his DIN in the future by filling the missed e-form DIR-3 KYC, he can do so after paying a late fee of Rs.5000. This fee will be due on or after September 30 of the year in which the electronic Form DIR-3 is to be filed. Directors must file this form annually.

Step-by-Step Guide to Filing DIR – 3 KYC

• Download the form: The first step would be to download the form from the MCA official website.
• Provide DIN details: The person/director must provide his DIN in the KYC form whose status is ‘Approved’. Those whose DIN has been deactivated due to non-submission of KYC can fill out the form even after the due date on payment of late filing charges.
• Enter the relevant details in the DIR-3 KYC form
  • Name and relevant credentials: The applicant must provide his/her father’s first and last name. The entered name should match the name listed in the PAN. The address given here will be verified using the PAN database. Abbreviations, short forms, and simple alphabets are not allowed.
  • Nationality: It is important to state your nationality. In the case of foreign nationals acting as company directors, the nationality shown in the passport should be selected.
  • Age Declaration: The person must enter their date of birth in DD/MM/YYYY format. When filling out this application, the person must be at least 18 years old.
  • Address: When filling out the form, it is mandatory to enter the address of permanent residence. Make sure that these details match the permanent address proof to be attached. A foreign PIN code can only be entered if the country NA is selected. If your current residential address does not match the address of your permanent residence, you must also provide your current residential address.
  • PAN Number Verification: It is mandatory to mention your Permanent Account Number (PAN). Click on the ‘Verify Income Tax PAN’ button after entering your PAN details and your details will be verified by the system.
    Note: The PAN number given in the form and the PAN number given in the DSC must be the same for successful validation. If foreign nationals do not have a PAN, the name given in the form must be the same as the name given in the DSC for successful validation.
  • Updating Contact Details and OTP Verification: It is important to enter your mobile number which will be OTP verified. Country codes other than +91/91/0 will be allowed only if the individual is not a resident of India. Likewise, you need to enter your email ID, which will also be verified by OTP. Then click on the ‘Generate OTP’ button. Separate OTPs will be sent.

• Attachments to be executed
  The applicant must upload the following documents. Before uploading, make sure you also have these forms validated:
  • Proof of permanent address.
  • Conditional attachments.
  • Copy of Aadhaar Card.
  • Passport copy.
  • Proof of current address.
• E-Form Certification: Ensure that the electronic form is digitally signed by an experienced Chartered Accountant / Cost Accountant or Company Secretary. It is mandatory to enter the information of the practicing professional and then attach their digital signature. After thorough proofreading, click the ‘Send’ button.

Process after form submission

• Generation of SRN: Upon successful submission of the DIR-3 KYC electronic form, an SRN will be generated for the user. For future reference, this SRN will be used.
• Email communication: An email confirming receipt of the form will be sent to the applicant’s personal email ID. Once we receive the approval email, the DIR-3 KYC e-form filling is complete.

Final words

In summary, DIR-3 KYC is a form initiated by the Ministry of Corporate Affairs. This form updates the KYC of all Directors. In this digitized era, a DIR-3 e-form DIN application was sufficient to obtain. This is a one-time process for anyone who wants to be a director in one or more companies. Now that MCAs are moving to update their register, all directors with DINs will have to submit their KYC details in Form DIR-3 KYC every year.