In a notification dated 5 July 2018 released by the Ministry of Corporate Affairs (MCA) has announced the Companies (Qualification and Appointment of Director) Fourth Amendment Rules, 2018. According to the rule, in a registered company or a new company registration, every director holding a Director Identification Number (DIN) should mandatorily get his know your client (KYC) details updated with the MCA within the period notified in the rules.
- Effective Date of the Notification: 10 July 2018
- Form: DIR-3 KYC
- The purpose of Amendment: The Central Government is administering a drive to get away with the shell companies along with unprincipled and dishonest directors who are regulating the “Benami companies” who are not on the record books. These unscrupulous directors appoint a random person like their drivers, house-helps, or garners who don’t even know that they are the director of some company. Hence the KYC drill is undertaken to sieve only genuine individuals who are responsible for running the affairs of any company.
- Eligibility: All the directors be it disqualified or currently in position, either Indian Resident or NRI or a Foreign Nationals holding DIN that has been allotted on or before 31 March 2018, are required to file the form DIR-3 KYC with MCA.
- Time Fence: The Directors with allotted DINs have to file the e-form DIR-3 KYC by 31 August 2018 with MCA. This is followed by yearly compliance from FY 2019-2020 onward.
- Filing Fees: No filing fees to file form DIR-3 KYC provided the form is being filled within the specified time-frame. The applicant will be filed with a fee of Rs. 5,000 in case of delayed submission.
- Consequences of Non-Compliance: After the mentioned due date, in case of non-compliance, the DIN shall be marked deactivated along with the reason “Non-filing of DIR-3 KYC” and the person won’t be able to use the DIN till the KYC process is completed.
- Information Required:
- PAN Card: Mandatory document for the Indian Nationals. All the data furnished in the DIR-3 KYC form shall be by the information registered with the Income Tax Department.
- Name of the Applicant: The full name should be provided without using any abbreviations as it is used in the documents attached for identity and address proof.
- Father’s Name of the Applicant: It is a compulsory field. Using the prefix, Late is not required for a deceased person and the married woman is also required to give their father’s name only.
- Passport: It is obligatory to possess a passport for a Foreign National with a DIN. The Passport No. shall be duly filled in the form. For Indian Nationals having a passport isn’t compulsory but in case the person has a passport then its details must be filed in the form.
- AADHAR Card: Owning an AADHAR is mandatory. The details furnished in the AADHAR should comply with the details furnished in both the PAN Card and the DIN.
- Mobile No. and E-Mail ID: The applicant must provide a person working mobile number and e-mail id. An OTP shall be sent for the verification of both the contact details.
- Present Residential Address: This should be synchronicity with the documents attached to the address proof. The Permanent Address may or may not be the same.
- Attachments Required:
- Identity Proof: PAN CARD/ PASSPORT/ AADHAR CARD
The document should necessarily have the applicant’s and his father’s name along with the photograph of the applicant and his date of birth.
- Proof of Present Address: PASSPORT/ AADHAR CARD/ VOTER IDENTITY
- Signatures: The form has to be digitally signed by the applicant using Class-2 Digital Signature which has to be registered via Role Check with the MCA.
- Certification: The form has to be certified post it’s verification with the original documents by a partitioning CA/CS/CMA professional.
DIR-3 KYC: Certification for Professionals
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