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DIR 3 KYC – KYC OF DIRECTORS
"GST registration is essential for legal business operations and unlocking tax benefits."
Director Identification Number (DIN) is a special identification number that is provided to an individual who wishes to serve as a director or who is already a director of an organization. In this digital age, completing e-Form DIR-3 was enough to receive DIN. Anyone who wanted to be a director of the companies had to go through this once.
All directors with a DIN must now submit their KYC information yearly using e-Form DIR-3 KYC as a result of the Ministry of Corporate Affairs' (MCA) decision to update its registration.
Who is required to submit an e-Form DIR-3 KYC?
According to a recent notification from the MCA, any director who received a DIN by March 31, 2018, or later, and whose DIN is accepted, must provide the MCA with their KYC information. Additionally, the disqualified directors must go through this process as well.
Every director who was assigned a DIN on or before the end of the financial year and whose DIN is in approved status is required to submit form DIR-3 KYC by September 30 of the following fiscal year, starting with the 2019–20 financial year.
E-Form DIR-3 KYC comes in two varieties, which are as follows:
DIR-3 KYC: This form must be submitted by any director whose information has to be updated or modified, or who is submitting e-Form DIR-3 KYC for the first time following DIN allocation.
DIR-3 KYC (Web): If a director's KYC information hasn't changed, they can submit this form if they have already submitted the e-Form DIR-3 KYC/DIR-3 KYC (Web) in the prior year. The director's basic information will be pre-filled from the MCA data in this e-Form and cannot be altered.
Important things to keep in mind while filing e-form DIR 3 KYC
• The e-Form must be filed with each director's personal email address and mobile number. An OTP (one-time password) will be used to validate this number and email address.
• When submitting this electronic form, the director must use their own digital signature.
• The director is responsible for making sure that the e-Form contains accurate and complete information, and it should be approved by a certified cost accountant, company secretary, or chartered accountant (CA) in practice.
Required documents for submitting e-Form DIR-3 KYC
The following paperwork is required in order to file your DIR-3-KYC form:
• Evidence of a permanent address, such as a PAN card, driver's license, or voter ID.
• Provide proof of address, such as a rental agreement or utility bills that are no more than two months old.
• The Aadhaar card.
• More optional documents.
In addition to the above stated documents, please have the following items on hand:
• Certificate of Digital Signature (DSC) of the director submitting the application.
• A practicing professional's DSC, membership number, or certificate of practice number, such as that of a cost accountant, chartered accountant, or certified public accountant.
Process of filing e- form DIR 3 KYC
Step 1: Visit the MCA website to log in
Click the "Sign In/Sign Up" button on the homepage to log in to the MCA website. By selecting the "Register" button, filling out the necessary information, and logging in with your User ID and password, you can register on the MCA website if you haven't already.
Step 2: Type in the email address and mobile number
Go to the "MCA Services" tab, then "Company e-Filing," "DIN Related Filings," and finally "Form DIR-3 KYC" or "Form DIR-3 KYC Web" after logging into the MCA website. The DIN number, email address, and cellphone number must be entered by the director on the form. An OTP will be given to your email address and mobile number. Click "Next" after entering the OTP.
Step 3: Details in e – Form DIR 3 KYC
The director has to provide the given details
• Name
• Father name
• Date of birth
• PAN number
• Aadhaar number
• Mobile number
• OTP will be sent to mobile number
• Email ID
• OTP will be sent to email ID.
• Permanent residential address.
• Present residential address.
The aforementioned information will be pre-filled if the director is completing e-Form DIR-3 KYC (Web). The director will be required to fill out OTP which will be sent to his registered mobile number and email ID.
Declaring a Permanent Account Number (PAN) is required. The director must click the "Verify income-tax PAN" button after inputting PAN information. The PAN card number will be used by the system to validate the information. For validation to be successful, the name on the form and the name on the DSC must match if the foreign national does not have a PAN.
Step 4: Certification of e-Forms and Attachments
The director then has to upload the necessary files. Following the attachment of the documents, the director must attach their or her DSC and attest that the data they submitted on the e-Form DIR-3 KYC is accurate. A chartered accountant, company secretary, or cost accountant should also digitally sign the e-Form. It is crucial to input the practicing professional's information and then include their digital signature. Finally, submit the DIR-3 KYC form by clicking the "Submit" button.
Due date of filing DIR 3 KYC Form
| E- Form | Timeline | Due Date | Purpose |
|---|---|---|---|
| DIR - 3 KYC | Annually | 30th September every year or any time in a year by paying Rupees 500/- fees | Every director having DIN as on 31st March every year and who has not filed DIR 3 KYC form earlier or if there is any change in registered email id and mobile number of director. |
| DIR -3 KYC Web | Annually | 30th September every year | Every director who has previously filed form DIR 3 KYC and if there is no change in registered email id and mobile number of director. |
Penalty for Non filing DIR 3 KYC Form
The department marks a director's DIN as "Deactivated due to Non-filing of DIR-3 KYC" when they do not submit the e-Form on the MCA 21 portal by the deadlines or the extended deadline. In these situations, the director can reactivate his DIN by submitting the e-Form DIR-3 KYC that was overlooked and paying a late fee of INR 5,000.
MCA Latest Amendment regarding e-form DIR -3 KYC
According to the recently revised Companies (Appointment and Qualification of Directors) Rules, the Ministry of Corporate Affairs (MCA) has announced a major relaxation in the KYC (Know Your Customer) requirements for company directors. With effect from August 1, 2024, these modifications aim to provide directors more freedom and less administrative work. Under the existing method, directors can update information such as email addresses and cellphone numbers when they submit their KYC to the MCA once a year. These details cannot be changed until the following filing period after they have been submitted. The new modifications, however, will allow directors to update their personal data more than once in a single fiscal year. Updates to personal information must be made "on or before 30th September of the financial year," according to the amended rule, which is found in Rule 12A. However, there is also a proviso that permits extra updates at any point during the year. The e-form DIR-3 KYC must be submitted with these updates, and there is a 500 INR cost each update. In order to facilitate easier compliance and more dynamic data accuracy for company directors, the MCA is making this adjustment as part of a larger effort to streamline processes and improve transparency in the management and operation of companies.
- FAQ
1. What is DIR-3 KYC?
IDIR-3 in order to verify their identification and guarantee adherence to KYC (Know Your Customer) regulations, directors of firms submit KYC forms. Important data is included on the form, including a director's contact information, personal information.
2. Who needs to file DIR-3 KYC?
DIR-3 KYC must be submitted by everyone named as a director of an Indian company, including those with a DIN (Director Identification Number).
3. Is DIR-3 KYC mandatory?
Yes, in order to update their information in the MCA records, all directors must submit a DIR-3 KYC each year. The Director Identification Number (DIN) could be deactivated if it is not filed.
4. When should DIR-3 KYC be filed?
Every year, the form needs to be submitted on or before 31st September. However, subject to certain requirements, the MCA may declare an extension.
5. What happens if the DIR-3 KYC form is not filed?
A director's DIN may be deactivated and they will no longer be able to make decisions or file documents on the company's behalf if they fail to submit the form by the deadline unless they reactivate it by filing DIR 3 KYC form and paying rupees 5000 as penalty.
6. Can a director file DIR-3 KYC after the due date?
Yes, but there will also be a 5,000 rupee late fine. Although there is a penalty for filing after the deadline, if the DIN is deactivated, this could interfere with the business's ability to operate.
7. Can I file DIR-3 KYC for multiple directors at once?
No, each director's DIR-3 KYC is submitted separately. However, if a company has more than one director who needs to complete their KYC, they can file more than one form at once for each director.
8. Can DIR-3 KYC be filed after the director's DIN is deactivated?
The form can be filed with a penalty to revive the director's DIN if it has been deactivated due to non-filing of DIR-3 KYC. However, until the reactivation procedure is finished, the director can have trouble using their authority.
9. Is it necessary to file DIR-3 KYC every year?
Indeed, submitting the form annually is required in order to maintain the director's information in the MCA database.
10. What is the process if a director is abroad and needs to file DIR-3 KYC?
A director may still submit a DIR-3 KYC even if they are not in India. The procedure is still the same, but they need to provide verification of their identification and address, which might be official documentation from their nation (such as utility bills or passports).
11. What is the difference between DIR-3 and DIR-3 KYC?
DIR 3 -When someone wishes to become a director of a corporation, they must apply for the Director Identification Number (DIN) using the DIR-3 form.
DIR 3 KYC- Directors who currently have a DIN can update their KYC information using the DIR-3 KYC form. To confirm and update the director's identification, it is a routine file.
12. Do foreign companies need to file INC-20A?
Yes, foreign companies that have office in India must also file INC-20A within 180 days of registration, declaring their registered office address.
13.Can a company file INC-20A if the office is not operational or is under construction?
No, the registered office needs to be completely functional and usable. The business should wait until the office is completely set up before filing INC-20A if it is still under construction or not yet functioning then form cannot be filed.
14.Is the proof of address of the registered office required to be notarized?
No, notarization of the proof of the registered office address is not necessary. It must, however, be genuine and contain a utility bill that is no more than two months old in addition to the documentation relating to the property, like a sale deed or rental agreement.