Guide to DIR-3 KYC

DIR-3 KYC is an annual compliance requirement mandated by the Ministry of Corporate Affairs (MCA) for all individuals who have been allotted a DIN. The primary objective of this exercise is to maintain an updated database of all directors registered with the MCA. Through this process, the MCA ensures the authenticity and current status of individuals holding directorial positions in Indian companies.

Think of it as an annual health check-up for your DIN. Just like you need to update your KYC details with banks and other financial institutions, the MCA requires directors to periodically verify their personal information.

Every individual who has been allotted a DIN and whose DIN status is 'Approved' needs to file DIR-3 KYC annually. This includes:

• Existing Directors: Individuals currently serving on the Board of Directors of any company.

• Designated Partners (DPs) of LLPs: While the form might differ slightly (DIR-3 KYC Web or E-form DIR-3 KYC), the underlying principle of annual KYC applies to DPs as well.

It's crucial to note that even if you are a director in multiple companies, you only need to file the DIR-3 KYC once using your DIN.

Non-compliance with the DIR-3 KYC requirement can lead to serious consequences. The MCA can deactivate the DIN of the non-compliant director. Once a DIN is deactivated, the individual cannot:

• Act as a director in any company.

• File any forms with the MCA.

• Participate in board meetings or other directorial activities.

Reactivating a deactivated DIN involves a specific process and may attract penalties. Currently, one needs to pay a penalty of Rs.5,000/- to reactivate a deactivated DIN. Therefore, it's always best to ensure timely compliance.

The MCA provides two modes for filing DIR-3 KYC:

• DIR-3 KYC Web: This is a web-based service accessible through the MCA portal. Individuals whose mobile number and email ID are already verified with the MCA can use this option for filing their KYC details. It's a relatively straightforward process involving OTP-based authentication.

• E-form DIR-3 KYC: This is a downloadable form that needs to be filled, digitally signed by a Practicing Company Secretary/Chartered Accountant/Cost Accountant, and then uploaded to the MCA portal. This option is generally used when the director's mobile number and email ID are not yet verified or when there are changes to be made in the existing details. It is important to note here that all Directors whose DIR-3 KYC is to be done for the first time have to mandatorily file e-form DIR-3 KYC only.

To successfully file your DIR-3 KYC, you will typically need the following information and documents:

• Your DIN.

• Your full name and father's name.

• Your current residential address.

• Your permanent address.

• Your date of birth.

• Your mobile number and email ID (which will be verified through OTP).

• Your Aadhaar number (mandatory for Indian nationals).

• Your Passport details (If you have a passport and mandatory for foreign nationals).

• A self-attested copy of your address proof (e.g. Utility Bill, Bank Statement, etc).

• A self-attested copy of your identity proof (e.g. Aadhaar card, passport, driving license, voter ID).

• Digital Signature Certificate (DSC).

Navigating the intricacies of MCA filings can be time-consuming and prone to errors. As a Practicing Company Secretary, we offer professional services to ensure your DIR-3 KYC compliance is handled efficiently and accurately.

Here's how our services can benefit you:

• Expert Guidance: We provide clear and concise information about the DIR-3 KYC requirements and the applicable deadlines.

• Accurate Filing: We ensure all the necessary details are correctly filled and the required documents are in order.

• Digital Signature Assistance: We can assist you with obtaining or using your Digital Signature Certificate.

• OTP Verification Support: We guide you through the mobile number and email ID verification process.

• Timely Compliance: We help you file your DIR-3 KYC before the due date, avoiding potential penalties and DIN deactivation.

• Peace of Mind: By entrusting this important compliance to us, you can focus on your core business activities.

Don't wait until the last minute! Ensure your DIN remains active and you stay compliant with the MCA regulations.

Contact us today for professional assistance with your DIR-3 KYC filing.