Know All About DIR 3 KYC Under ROC, Form Due Date & Penalty
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.
Table of Contents
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
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 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.
FAQs on DIR-3 KYC
Q.1 – Who is susceptible to fill the form DIR-3 KYC?
Ans : Persons who have DIN registered under their names on 31 March and haven’t filed Form DIR-3 KYC within the previous year are vulnerable to file Form DIR-3 KYC within the current year. Moreover, those who have already filed the Form but are willing to form some changes within the contact information or the other particulars are invited to fill the Form with updated details within the current year
Q.2 – What’s the target behind filing Form DIR-3 KYC?
Ans : The purpose behind introducing the Form DIR-3 KYC is to record the proper details of the DIN holder
- Sometime, person applying for DIN tends to furnish wrong information, thus, it provides for verify of the application.
- It is quite obvious that people tend to change their address or contact details or the other relevant information during the course of time and thus, they would require to update the same.
Q.3 – Explain about Form DIR-3 KYC?
Form DIR-3 KYC WEB is solely to verify the information filled by the DIN holder in his previous year’s Form DIR-3 KYC. given that the whole data is updated and there aren’t any changes within the data
Q.4 – what’s the maturity assigned by MCA for filing Form DIR-3 KYC?
For the persons who are having DIN on 31 March it’s mandatory to file Form DIR-3 KYC on or before 30 September of the present month. For those that have acquired the DIN any time after 31 March of this year is required to fill the Form on or before 30 September of the following year
Q.5 – What is the process for filing Form DIR-3 KYC WEB?
Ans: Here is that the step-wise guidance to file the form:
- Log in to the MCA portal with the assistance of your login credentials
- On the portal, look for MCA Service → DIN Services → DIR-3-KYC-WEB
- Enter the DIN issued in the name of the applicant.
- Mobile number and email ID will automatically get filled in the respective field.
- Click on send OTP
- An OTP are going to be directed to your mobile number and Email ID
- Enter the OTP provided on mobile number and E-mail separately and click on verify button.
- All the information will be pre-filled in respect of the DIN holder. Tally all the small print and make necessary changes. Finally, Click on Submit
- A zero-rupee challan and SRN shall be created if the Form is filed on or before 30th September
Q.6 – Deadlines for e-filing Form DIR-3 KYC ?
Ans : Due date for verifying and submitting Form DIR-3 KYC WEB is on or before 30TH September
Q.7 – Is it mandatory to file e-form DIR-3 KYC within the current year if someone has filed the identical within the previous year?
Ans : No, e-form DIR-3 KYC isn’t mandatory compliance until the DIN holder has any changes within the details, he/she has furnished within the last year’s form
Q.8 – What if there’s a change within the contact information given by the DIN holder within the previous year’s Form DIR-3 KYC?
Ans :If there are changes within the mobile number, email ID, or the other related contact detail then one must furnish Form DIR-3 KYC within the current year
Where the person wishes to update their permanent address, residential address, Passport number, nationality, etc. the same can be made by filing form DIR-6. Once the small print in DIR-6 is verified then one must update the small print through e-form DIR-3 KYC Online.
Q.9 – What can be done in case, where the DIN has been issued after March 31 (of the previous year), however, some changes appear in respect of contact information before March 31 (of the present year)?
Ans : If there are changes within the mobile number, email ID, or the other related contact detail then one must furnish Form DIR-3 KYC WEB within the current year any time before 30 September
Where the person wishes to update their permanent address, residential address, Passport number, nationality, etc., the same can be made by filing form DIR-6. Once the small print in DIR-6 is verified then one must update the main points through e-form DIR-3 KYC WEB any time before 30 September
Q.10 – What amount of penalty be levied, where the person fails to file e-form DIR-3 KYC or Form DIR-3 KYC web on or before the prescribed due date?
Ans : Penalty for not filing e-form DIR-3 KYC isn’t yet stated by the administration except for delayed filing of e-form DIR-3 KYC or e-form DIR-3 KYC WEB will invite the penalty of Rs. 5000
Q.11 – what’s the aftermath of not abiding by the regulatory norms of Directors’ KYC apart from a penalty?
Ans : If form DIR-3 KYC isn’t filed or verification isn’t done through form DIR-3 KYC WEB (if needed) the DIN of the concerned individual is deactivated. any person with the deactivated DIN is barred from making any online compliance, filing of forms, etc. where DIN is needed. He not is going to be identified because the director of any company operative in India. Any compliance associated with appointment and/or resignation filed with ROC (Form DIR-12) won’t be considered valid until the DIN is reactivated
Q.12 – List the documents/information that is to be affixed with Form DIR-3 KYC?
Ans :
| DOCUMENTS REQUIRED | FOR INDIAN RESIDENTS/ FOREIGN RESIDENT |
| PROOF OF PERMANENT ADDRESS | ANY 1 (ONE) FROM THE FOLLOWING: –
· PASSPORT · AADHAR CARD · ELECTRICITY BILL · TELEPHONE BILL · UTILITY BILLS ET. · VOTER’S IDENTITY CARD · DRIVING LICENSE · RATION CARD · BANK STATEMENT
SELF-ATTESTED COPIES OF ANY OF THE ABOVE DOCUMENTS SHALL ALSO BE PROVIDED AND THE SAME SHALL NOT BE OLDER THAN 2 MONTHS. HOWEVER, IN CASE OF FOREIGN RESIDENT, THE SAID PERIOS IS OF 1 YEAR. |
| PROOF OF PRESENT ADDRESS, WHERE THE PERMANENT AND RESIDENTIAL ADDRESS DIFFER. | ANY 1 (ONE) FROM THE FOLLOWING: –
SELF-ATTESTED COPIES OF ANY OF THE ABOVE DOCUMENTS SHALL ALSO BE PROVIDED AND THE SAME SHALL NOT BE OLDER THAN 2 MONTHS. HOWEVER, IN CASE OF FOREIGN RESIDENT, THE SAID PERIOS IS OF 1 YEAR. |
| SELF ATTESTED COPY OF AADHAAR CARD | AADHAAR IS MANDATORY, WHERE THE APPLICANT IS A RESIDENT OF INDIA. |
| SELF ATTESTED COPY OF PASSPORT | MANDATORY
|
| SELF-ATTESTED COPY OF PAN | MANDATORY, IN CASE, THE APPLICANT IS A CITIZEN OF INDIA |
Q.13 – An individual has acquired the DIN but he’s not currently posted as a Director in any company. Will the requirement for filling form DIR-3 KYC be triggered?
Ans : No matter if the person could be appointed or not because the director in any public or private company or is a partner or not within the LLP, if he’s a DIN holder, he must furnish form DIR-3 KYC and update the main points
Q.14 Which details are required to be filled within the Form DIR-3 KYC?
Ans : Name, Father’s Name, Date of Birth, PAN Number, Personal Mobile Number, and private Email Address and Permanent/ Present address.
Further, Aadhaar is mandatory, if it’s assigned. If not, then a Voter ID or Passport, or driver’s license shall be attached. Accordingly, a duplicate of anybody of the above is to be attached.
Q.15 I’m only a shareholder within the company. Will I be required to file form DIR-3 KYC?
Ans : No, only an individual who is holding a DIN is required to file DIR-3 KYC.
Q.16 I’m a disqualified director. Will the requirement for filling form DIR-3 KYC be triggered?
Ans : Yes. somebody who has been allotted DIN and where the status of such DIN is ‘Approved’, is required to file form DIR-3 KYC. Hence, disqualified directors are required to file form DIR-3 KYC.
Q.17 what’s the penalty for non-filing of E-Form DIR-3 KYC?
Ans : DIN shall be marked as ‘Deactivated thanks to non-filing of DIR-3 KYC’ and can still remain in ‘Deactivated’ status until KYC is finished with a fee of ₹5,000.
Q.18 My DIN status is ‘Deactivated’. am I able to file E-Form DIR-3 KYC?
Ans : Form DIR-3 KYC will be filed for status ‘Deactivated thanks to non-filing of DIR-3 KYC’ after payment of ₹5,000.
Q.19 Is multiple filing of DIR-3 KYC allowed?
Ans : The system won’t allow multiple filing of form DIR-3 KYC for an applicant. just in case KYC is already filed for a DIN, and such DIN is entered again, the system throws a slip-up that the Form is already filed.
Q.20 Who is required to File e-Form DIR 3 KYC-WEB?
Ans : online -based DIR-3 KYC is applicable to those individuals who have submitted the DIR-3 KYC form within the previous year and requires no updation in KYC details within the present year. The user is required to logging into the MCA Portal and shall update his KYC by OTP Verification on their mobile and email id. After verifying, submit the Form and generate the challan. there’s no need for professional certification required within the case of web-based DIR-3 KYC
Q.21 a personal has acquired the DIN but he’s currently not appointed because the Director in any company. Does such a personal still need to file Form DIR-3 KYC?
Ans : Yes, if the individual has to file the DIR-3 KYC form whether he’s appointed or not because the director in any company or partner within the LLP, if he possesses a DIN, he must furnish form DIR-3 KYC and update the small print.
Q.22 will we have to enter a novel email id and number in DIR-3 KYC form?
Ans : Yes, the mobile and email id should be unique for each individual and therefore the same has got to be verified by OTP.
Q.23 Can a Non-Resident Individual provide an Indian Mobile number?
Ans : No, just in case of non-residential director/individual foreign number is allowed. just in case you enter the Indian number, OTP won’t be generated.
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