Companies (Appointment and Qualification of Directors) fourth Amendment Rules, 2018 Dated 05.07.2018 inserted a new rule to Companies (Appointment and Qualification of Directors) Rules, 2014, Rule 12A - Directors KYC. The main purpose of having DIR-3 KYC provision is to ensure the data related to Directors available with the Government is up to date.
There were many instances where the Government found that either the details furnished at the time of applying DIN were not true or the updated particulars of an individual acting as a Director is not available and hence it becomes difficult to the Government to enforce regulatory actions such persons in case of non-compliance or fraud. With the introduction of DIR-3 KYC now Government can have updated Director’s details and deactivate those DIN’s where updated information is not provided.
The compliance requirements for filing Form DIR-3 KYC and DIR-3 web-based are discussed under:
Legal Provision and Annual Compliance
The Rule 12A provides that every individual, who holds a Director Identification Number (DIN) as on 31st March of a financial year is required to submit e-form DIR-3 KYC for that financial year to the Central Government on or before 30th September of the immediate financial year.
For the Financial year, 2018-19 - Any person who has been allotted “Director Identification Number (DIN/DPIN)” on or before 31st March 2018 and the status of such DIN is ‘Approved’, needs to file form DIR-3 KYC to update KYC details in the system on or before 5th October 2018.
For the Financial year 2019-20 onwards - Every Director who has been allotted DIN on or before the end of the financial year, and whose DIN status is ‘Approved’, would be mandatorily required to file form DIR-3 KYC before 30th September of the immediately next financial year.
Where an individual who has already submitted e-form DIR-3 KYC in relation to any previous financial year, can submit web-form DIR-3 KYC-WEB through the web service in relation to any subsequent financial year.
After expiry of the respective due dates, the system will mark all non-compliant DINs against which DIR-3 KYC form has not been filed as ‘Deactivated due to non-filing of DIR-3 KYC’.
Who shall file Form DIR-3 KYC?
- If you are submitting the KYC details for the first time then the same shall be submitted filing Form DIR-3 KYC only.
- If you want to update mobile number or email address, then it can be submitted only through filing Form DIR-3 KYC
Who can use DIR-3 Web-based service?
DIR-3 web-based service can be used by the DIN holder who has submitted eForm DIR-3 KYC in the previous financial year and no update is required in his details. It is mere verification of his details.
What is the due date for filing Form DIR-3 KYC?
For individuals who are holding DIN on 31st March, the last date for filing the form is on or before 30th September.
For individuals who acquired DIN after 31st March, they shall file Form DIR-3 KYC on or before 30th September, next year.
What is the last date of filing e- form DIR – 3 –KYC-WEB?
Last date for verification the form is on or before 30th September.
What are the consequences of non-filling of Form DIR-3 KYC or DIR-3 KYC-WEB?
If the DIN holder does not file his annual KYC within the due date of each financial year, then such DIN will be marked as ‘Deactivated due to non-filing of DIR-3 KYC’ and will remain in such Deactivated status until KYC is done with a fee of Rs.5000.
There is no penalty for non-filing but a fee of Rs 5000/- shall be paid at the time of delayed filing of e- form DIR-3 KYC or DIR-3 KYC-WEB.
Defaults in filing KYC
The MCA has clarified that if KYC is done in one financial year then it need not be done in the same financial year again.
Example: DIN is issued on 30 Jun 2017. The due date for the first KYC to be filed in eForm DIR-3 KYC was 5th October 2018. If the DIN holder does not file the form within the due date, DIN is marked as ‘Deactivated due to non-filing of DIR-3 KYC’ and compliance shall be completed with fees of Rs. 5000.
Now, in case the form DIR-3 KYC is filed with a fee of Rs.5000 before 31st March 2018, KYC will be considered to have been done for the FY 17-18. But if the form DIR-3 KYC is filed with a fee of Rs. 5000 on or after 1st April 2018, KYC will be considered to have been done for the FY 18-19 and the DIN holder will remain KYC non-compliant for FY 17-18.
Therefore, filing KYC details before due dates for every financial year is a must. Also, the system does not allow multiple filing of DIR-3 KYC for an applicant.
Details and documents required for filing Form DIR-3 KYC or DIR-3-WEB in case on Indian resident
Details required to be mentioned are as under:
- Name as per PAN database
- Father’s Name as per PAN database
- Date of Birth as per PAN database
- PAN number
- Valid Mobile Number (Unique)
- Valid Email address (Unique)
- Permanent and present address
- Aadhar number (Mandatory is assigned, If not, then Voter ID or Passport or Driving License number)
Documents/proofs required to be attached are as under:
Mandatory documents: As Identity Proof:
- Self-attested copy of PAN card
- Self-attested copy of Aadhar Card (if it is not assigned, then a self-attested copy of Voter ID or Passport or Driving Licence.)
As Address Proof any 1 (0ne) of the following, self-attested copy of
- Aadhar Card,
- Voter’s Identity Card,
- Driving license,
- Ration Card,
- Bank Statement (not older than 2 months)
- Electricity Bill (not older than 2 months)
- Telephone Bill (not older than 2 months)
- Utility Bills etc. (not older than 2 months)
If the present residential address is different than permanent address, then a self-attested copy (not older than 2 months) of any 1 (one) of the following shall be provided indicating the present address.
- Bank Statement
- Electricity Bill
- Mobile Bill
- Telephone Bill
Details and documents required for filing Form DIR-3 KYC or DIR-3-WEB in case on Foreign National
Mandatory Documents: As proof of Identity
- Self-attested copy of valid Passport.
- In case of foreign national residing in India, self-attested copy of Visa along with arrival stamp is also required.
As proof of residence: Any 1 (one) of the following Valid Driving license,
- Bank Statement,(not older than 1 (one) year)
- Electricity Bill, (not older than 1 (one) year)
- Telephone Bill, (not older than 1 (one) year)
- Or any other utility bill etc. (not older than 1 (one) year)
If the present residential address is not the same as the permanent address then attach any 1 (one) of the following:
- Bank Statement (not older than 1 (one) year)
- Electricity Bill (not older than 1 (one) year)
- Mobile Bill (not older than 1 (one) year)
- Telephone Bill (not older than 1 (one) year)
In case of foreign nationals, if he/she does not have a permanent address outside India, then affidavit stating “such foreign national do not have any permanent address outside India MUST be attached”.
It is also important to note that in case of foreign nationals, who do not have PAN, the name mentioned in the form must be same as the name mentioned in the DSC affixed for successful validation.
Attestation of Documents
All the documents must be self-attested in case of Indian/foreign National. Additionally, in case of a foreign national residing outside India, the proof of identity and proof of residence must be self-attested and notarised/ apostilled in the following manner:
- In case the country of residence is under Commonwealth nations: all the documents shall be notarized by a Notary (Public) in that part of the nation; or
- In case the country of residence is under the Hague Convention: all the documents shall be notarized and duly apostilled.
- In case the country of residence is neither under Commonwealth nations nor Hague Convention: all the documents shall be notarized before the Notary (Public) of such Country and the Certificate of the Notary (Public) shall be authenticated by a Diplomatic or Consular Officer empowered in this behalf under Section 3 of the Diplomatic and Consular Officers (Oaths and Fees) Act, 1948 or, where there is no such officer by any of the officials mentioned in Section 6 of the Commissioners of Oaths Act, 1889, or in any Act amending the same.
In case of proofs are in languages other than Hindi / English, the proofs should be translated in Hindi / English from professional translator carrying his details (name, signature, address) and seal. In the case of foreign nationals, translation done by the notary of the home country is also acceptable.
Digital Signature Certificate ( DSC ) of the applicant is must
To file eForm DIR-3 KYC DSC of the applicant who is filing the application is a must. Without DSC the form cannot be submitted.
Whether e- form DIR-3 KYC is required to be filed by a person every year who has filed e- form DIR-3 KYC last year?
No, if DIN holder has already filed eForm DIR-3 KYC previous year, he need not file the form again unless he/she wants to update the details namely, mobile number or the e-mail address.
When to use Form DIR-6?
In case an individual desire to update his permanent or present residential address, Passport Number, Nationality etc., he shall update the same by submitting Form DIR- 6 and on approval of Form DIR-6, verify the details through form DIR – 3 –KYC-WEB.
Are disqualified directors required to file DIR-3 KYC?
Yes. disqualified Directors are required to file DIR-3 KYC. Any person to is holding DIN and the status of their DIN is ‘Approved’, are required to file DIR-3 KYC.
Whether multiple filing of DIR-3 KYC is allowed?
No, multiple filing of DIR-3 KYC is not allowed. In case KYC is already filed for a DIN, and if such DIN is entered again, the system will not accept and a message stating the form is already filled will pop.
What is the fee to file Form DIR-3 KYC?
There are no fees payable for filing Form DIR-3 KYC or DIR-3-WEB if the same is filed within the due date of the respective financial year. However, filing after due date will attract a fee of Rs.5000(Rupees Five Thousand).
Whether partner in LLP holding LLPIN has to file DIR-3 KYC?
Yes, irrespective whether the individual is Director in a company or Partner in LLP, holding DIN is required to submit DIR-3 KYC.
Whether providing a personal mobile number and email ID mandatory?
Yes, providing a valid personal mobile number and email ID is mandatory as the same will be verified through OTP process. Further, the mobile number and email ID must be unique such that it is not already linked with some other person in the DIN holders’ database.
Who shall certify Form DIR-3 KYC?
Post affixing DSC of the applicant, Form DIR-3 KYC must be certified by CA/CS/CMA in whole-time practice.
How to reactivate DIN marked as ‘Deactivated due to non-filing of DIR-3 KYC’?
The DIN marked as ‘Deactivated due to non-filing of DIR-3 KYC’ can be reactivated, by filing Form DIR-3 KYC and payment of fees of Rs. 5000.
- In case DIN holder is an Indian resident, the address of residence should be Indian address and mobile number should be Indian mobile number.
- In case DIN holder is a foreign resident, foreign address and foreign mobile number shall be provided.
- Email id and mobile number should be a valid one, as OTP in case of web-based verification will be sent to the same and without OTP verification cannot complete.
- In case of foreign nationals, who do not have PAN, the name mentioned in the form must be same as the name mentioned in the DSC affixed for successful validation of the form.
- The PAN mentioned in the form and the PAN mentioned in the DSC affixed, must be same.
- The OTP sent by MCA21 system shall be valid for 20 mints.
- The address proof(s) should be in the name of the applicant only.
DIR 3 KYC due date for Financial Year 2019-20
The due date for filing Form DIR-3 KYC or DIR-3-WEB for the financial year 2019-20 is 30th September 2020.
DIN holders whose DIN is ‘Deactivated due to non-filing of DIR-3 KYC’, can submit DIR-3 KYC without late fees of Rs. 5000 till 30th September 2020 under CFSS 2020. The said relaxation, however, is not applicable for Directors who are disqualified under section 164 of the Companies Act, 2013.
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