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Know All About DIR 3 KYC Under ROC, Form Due Date & Penalty

kYC mca

All about the Meaning & Purpose of KYC & DIR 3

BRIEF INTRODUCTION

KYC stands for “Know your customer”. it’s a process initiated by all banks, financial institutions and other departments to grasp their client’s identity by verifying his personal details like Mobile number, E-mail Id, PAN, Passport, etc. well before.

The Ministry of Corporate affairs have also undertaken the method of KYC of DIN holders. during this process, details of Directors having Director number (DIN) are verified with the assistance of E-form DIR-3 KYC. This verification of private details helps the Ministry in tracing the administrators or designated partners just in case of any non-compliance or fraud committed by them. KYC of DIN holders ensures Ministry that true and proper particulars are uploaded on the registry of MCA.

LATEST UPDATE BY MCA

  • It was provided that the last date for filing DIR-3 KYC for the year 2019-20 has expired on 31st December 2020. the method of deactivating the non-compliant DINs is ongoing and can be completed shortly. Also, the service in respect of web DIR-3 KYC, shall not be available, during the pendency of the above prescribed activity. Filing of DIR-3 KYC are often made after completion of the scheduled activity, as above when the service is formed available on the portal after payment of applicable fees.
  • Important Update by MCA – “DIN holders of DINs marked as ‘Deactivated’ due to their non-filing of DIR-3KYC/DIR-3 KYC-Web and also the Companies whose compliance status has been marked as “ACTIVE non-compliant” due to their non-filing of Active Company Tagging Identities and Verification (ACTIVE) e-form, have been encouraged to become compliant once again. They are required to file their DIR-3KYC/DIR-3KYC-Web/ACTIVE because the case could also be between 1st April, 2020 to 30th September, 2020 along with the zero-filing fee of INR 5000 and INR 10000 in case of DIR-3KYC and DIR-3KYC-Active respectively.

MEANING AND PURPOSE OF KYC & DIR 3

DIR-3 KYC is an electronic form which is launched by Ministry of Corporate Affairs to update the main points of Directors having DIN through this e-form. Every individual having DIN or DPIN as on 31st March of economic Year shall require to submit E-form DIR-3 KYC to the Central Government on or before 30th September of immediate next year.

Further, as per MCA amendment, if a person has DIN or DPIN as on 31st March, 2018 shall require to file Form DIR-3 KYC on or before 5th October, 2018. The status of the DIN is required to be approved, in order to file Form DIR-3 KYC. Where a personal intends to update his personal information like Mobile number or E-mail ID, the same be update through e-form DIR-3 KYC.

DIR-3 KYC is required to be filed for the aim that Government seek updated particulars of the administrators and to require regulatory actions against the director just in case of fraud or non-compliance. There are mainly 2 purposes for filing Form DIR-3 KYC. These are –

  • Filing such form ensures that updated data is obtainable with the Ministry of Corporate affairs of a private holding DIN.
  • To deactivate DIN’s which don’t seem to be being employed by the administrators or where information available isn’t updated.
  • An individual who holds DIN on 31st March once a year is required to file e-form DIR-3 KYC and one that wish to update his personal information like mobile number or E-mail ID is required to file the identical.

DATE OF FILING AND CONSEQUENCE OF NON-FILING KNOW All About DIR 3 KYC Under ROC, Form Due Date & Penalty

Every individual having DIN or DPIN as on 31st March of Financial Year shall require to submit E-form DIR-3 KYC to the Central Government on or before 30th September of immediate next yr. If a person has DIN or DPIN as on 31st March, 2018 shall require to file Form DIR-3 KYC on or before 30th Sept, 2018.

If a Director is unable or fails to file e-form DIR-3 KYC on MCA portal by the date, then DIN of such director shall be marked as ‘Deactivated because of non-filing of DIR-3 KYC’ by the Ministry. If a director wishes to re-activate his DIN, then he must file e-form DIR-3 KYC together with a fee of Rs. 5000/-. Otherwise, no fee is required to be paid if such form is filed within stipulated fundamental quantity.

DOCUMENTATION FOR KYC 

The following documents be attached with the form DIR-3 KYC –

  • Mandatory proof of permanent address like Passport or Aadhar Card or Voter Id card or driver’s license or statement or Any utility bill and every one the documents shall be Self attested and will not be older than 2 months.
  • If the current address isn’t same as Permanent address, then either statement or Utility Bills are required to be attached which shouldn’t be older than 2 months and must be self-attested.
    • Copy of passport (if any)
    • Copy of Aadhar Card
    • Details of nationality
    • Permanent Account Number (PAN)
    • Personal Mobile Number or E-mail Id

STEP-BY-STEP PROCESS FOR FILING OF KYC STEP-BY-STEP PROCESS FOR FILING OF KYC

DIR KYC-

Step 1: Download the Form

  • The first step of filing the form required the download of DIR-3 KYC form from the MCA website by the applicant.

Step 2: Fill within the DIN details

  • Directors must fill within the DIN within the KYC form, whose status is ‘Approved’
  • Directors with deactivated DIN due to non-filing of KYC Form, can fill the Form after the prescribed maturity date by paying late filing charges

Step 3: Furnish the specified Details within the DIR- 3 KYC Form

  • Name & Relevant Credentials. The applicant must fill his first & name and also the primary & surname of his father.
  • Director are required to provide the details of their name, being mentioned in their PAN
  • Address furnished within the form are going to be authenticated with the PAN database
  • Single alphabets, Acronyms, and Short forms don’t seem to be permitted
  • The director is also required to disclose their nationality.
  • Directors having foreign nationality are required to declare their nationality as mentioned in their passport
  • A director must enter his date of birth (DOB) within the DD/MM/YYYY format. Director’s age declaration is required, in order to verify whether the directors are 18 years of age or not, since minor is ineligible for becoming a director.
  • A director must mandatorily enter his permanent residential address and connect a symbol of permanent address. When the present residential address is different from the permanent residential address, it becomes compulsory to furnish the present residential address.

Step 4: PAN Verification

  • Permanent Account Number (PAN) verification is mandatory. First, a director must enter his PAN and so click on the ‘Verify income-tax PAN’ button. Then, the system verifies the main points of the director on the premise of the PAN card number.
  • Note: The PAN furnished within the form should match with the PAN mentioned within the DSC for successful authentication. just in case when the foreign nationals don’t have a PAN, the name furnished within the form must match with the name mentioned within the DSC for successful authentication.

Step 5: Providing for Contact Details and OTP Verification

  • The director is required to update their contact details, by providing their mobile number and e-mail address, and the same gets verified using OTP Verification.
  • When a director enters these contact details, he must get them verified through an OTP by clicking on the ‘Generate OTP’ button after the submission of those details. It is to be noted that separate OTPs are sent for mobile number and email address and the same be verified separately.
  • Only the administrators who aren’t residents of India are allowed to enter the country codes aside from +91/91/0
  • It should be noted that an OTP will successfully be sent to the mobile number & email address for a maximum of 10 times/day and twice in half-hour against one form

ATTESTED ATTACHMENTS TO BE SUBMITTED

    • Proof of Permanent address
    • Other attachments as may be required based on the specific circumstances.
    • Proof of present address
    • Copy of Aadhaar Card
    • Copy of Passport

Step 6: Authentication of e-Form

  • Directors must make sure that the e-Form is authenticated which suggests it’s digitally signed by a Chartered Accountant/Cost Accountant, or an Company Secretary, being in a practicing profession. Furnishing the small print of the practicing professional together with their digital signature may be a crucial task which might not be avoided.
  • The details of such practicing professional shall be furnished together with his/her digital signature. Documents which are mentioned above are attached to the current form and these documents must be attested.
  • Once all the details have been provided, click on the ‘Submit’ button.

Step 7: SRN Generation

  • Once the e-Form DIR-3 KYC is submitted successfully, an SRN is generated and allotted to the user for the long run use correspondence with the MCA.

Step 8: Email communication

  • The applicant will receive an email, acknowledging the receipt of the personal email ID.
  • Submit the Form and after successful submission SRN is generated and therefore the applicant shall receive an acknowledgement receipt of the Form on his/her mail Id.

E-FORM DIR-3 KYC ONLINE 

If the director has already filed E-form DIR-3 KYC in any previous yr and all the information in respect of personal details like name, address, mobile number, e-mail Id, etc. have been under any correction, he must file e-form DIR-3 KYC web for his/her annual KYC.

CONCLUSION

In order to fulfil the aim of imposing penalties or imprisonment or both just in case directors are in default, an updated personal detail of the administrators must be maintained by the Ministry of Corporate Affairs so Ministry can easily communicate the identical whenever required. this can be the first reason behind introduction of e-form DIR-3 KYC. It may be said that it’s a decent corporate governance measure to abolish shell companies and fraudulent directors.

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