Aug 18, 2019

FAQ ON KYC OF DIRECTORS – FORM DIR-3 KYC AND DIR-3-KYC-WEB

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MCA vide its notification dated July 05, 2018 has amended the Companies (Appointment and Qualification of Directors) Rules, 2014 and provided that every person holding DIN as on 31st March of a financial year shall be required to submit Form DIR-3 KYC. Further Directors holding DIN as on March 31, 2018 shall be required to file Form DIR-3 KYC on or before October 5, 2018. The purpose of DIR-3 KYC is to ensure that correct particulars of an individual holding DIN is available with the Ministry of Corporate Affairs.

In furtherance to the above initiative, MCA has once again amended the Companies (Appointment and Qualification of Directors) Rules, 2014 w.e.f 25th July, 2019 providing for new mechanism of filing Form DIR-3 KYC. The current compliance requirement with respect to filing of Form DIR-3 KYC are discussed herein below:

1. Who are required to be file Form DIR-3 KYC?

Every individual who holds DIN on 31st March of a year and who has not previously filed Form DIR-3 KYC, is required to file Form DIR-3 KYC. Further individuals who have already filed Form DIR-3 KYC and who wish to update their personal mobile number and e-mail address, shall re-file the said form for updating the said details.

2. What is the purpose of filing Form DIR-3 KYC?

In certain instances, the Government found that either details furnished at the time of applying DIN were not true or the updated particulars of an individual acting as a Director is not available with the Government. In such a situation, it becomes difficult for the Government to enforce regulatory actions such persons in case of non-compliance or fraud. Therefore the objective behind KYC of individuals holding DIN is two fold , firstly to ensure updated data is available in the records of the Government in respect of every person who is holding DIN and secondly to deactivate DIN’s , which are not being used and where updated information is not available.

3. What is Form DIR-3 KYC-WEB?

Form DIR -3 KYC–WEB is used for verification of details by the DIN holder who has submitted Form DIR -3 KYC in the previous financial year provided no update is required in his details.

4. What is the last date of filing Form DIR-3 KYC?

For individuals who are holding DIN on 31st March, the last date for filing the form is on or before 30th September. Further individuals who acquired DIN after 31st March, they shall file Form DIR-3 KYC on or before 30th September, next year.

5. What is the procedure for filing Form DIR – 3 –KYC-WEB?

The following is the procedure:

  • Login to MCA using Username and Password.
  • Select MCA Service → DIN Services → DIR-3-KYC-Web.
  • Enter DIN of the concerned person.
  • Pre-filled mobile number and Email ID shall appear.
  • Click on send OTP.
  • Enter OTP for mobile number and Email ID.
  • Click on verify OTP*.
  • Confirm the details of the concerned person appearing on screen and click Submit.
  • A zero rupee challan along with the SRN shall be generated (if filed on or before 30th September)
  • * OTP for a maximum of 10 times through from one login ID in one day.
    For more chances, either wait for next day or use another login.

6. What is the last date of filing e- form DIR – 3 –KYC-WEB?

Last date for verification the form is on or before 30th September.

7. Whether e- form DIR-3 KYC is required to be filed by person who have filed e- form DIR-3 KYC last year?

No, until he/she wants to update his/her details namely personal mobile number and e-mail address.

8. What is to be done, if you had filed Form DIR-3 KYC last year and there is a change in particulars filed thereafter?

  • In case an individual desire to update his personal mobile number or the e-mail address, he shall update the same by submitting Form DIR-3 KYC only.
  • In case an individual desire to update his permanent or present residential address, Passport Number, Nationality etc., he shall update the same by submitting Form DIR- 6 and on approval of Form DIR-6, verify the details through form DIR – 3 –KYC-WEB.

9. Wat is to be done, if you had obtained DIN after March 31st of last year but before March 31st of this year and there is change in your particulars

  • In case an individual desire to update his personal mobile number or the e-mail address, he shall update the same by submitting Form DIR-3 KYC only.
  • In case an individual desire to update his permanent or present residential address, Passport Number, Nationality etc., he shall update the same by submitting Form DIR- 6 and on approval of Form DIR-6, file Form DIR – 3 –KYC.

10. What is the penalty for non – filing of the e- form DIR-3 KYC or DIR-3 KYC-WEB within the due date?

There is no penalty for non-filing but a fee of Rs 5000/- shall be paid at the time of delayed filing of e- form DIR-3 KYC or DIR-3 KYC-WEB

11. What are the consequences of not complying with the provisions of Directors’ KYC apart from payment of penalty?

On non-filing of DIR-3 KYC or verification of details on DIR-3 KYC Web, the DIN of the concerned individual will be deactivated. A deactivated DIN only restricts the Director from making e-compliances like filing of forms etc., i.e. wherever data is captured / verified online through DIN details. His actions as Director shall not be held invalid. He can be appointed/ re – appointed/resigned in a Company, however the compliance related to return of such appointment/resignation to be filed with the ROC (Form DIR-12) shall not be possible unless the DIN is re-activated by filing of DIR-3 KYC / DIR-3 KYC web.

12. What documents/information are required to be filed/verified with Form DIR-3 KYC?

Below are the documents required to be filed with e -form DIR-3 KYC:

Documents

For Indian residents/ foreign resident

Proof of Permanent Address (Mandatory)

Any 1 (one) from the following: –

  1. Passport,
  2. Aadhar Card,
  3. Voter’s identity Card,
  4. Driving license,
  5. Ration Card,
  6. Bank Statement,
  7. Electricity Bill,
  8. Telephone Bill,
  9. Utility Bills etc.

Note: Above documents to be Self attested copy, not older than 2 month,

1 year for foreign national in case of point (f) to (i))

Proof of Present Address
(In case ‘No’ is selected in the field “Whether present residential address is same as permanent residential address”)

Any 1 (one) from the following: –

  1. Bank Statement
  2. Electricity Bill
  3. Mobile Bill
  4. Telephone Bill

Note: Above documents to be Self attested copy, not older than 2 month,

1 year for foreign national.

Copy of Aadhaar Card (Self Attested)

Mandatory, in case applicant is citizen of India, if it is not assigned, then Voter ID or Passport or Driving Licence.

Copy of Passport (Self Attested)

Mandatory,

  1. In case applicant having a valid passport
  2. In case of foreign national residing in India, self-attested copy of Visa along with arrival stamp is also required.

Self-attested copy of PAN

Mandatory, in case applicant is citizen of India

Note: In case the individual is foreign national residing outside India:

  1. Commonwealth nations, all the documents shall be notarized by a Notary (Public) in that part of the nation; or
  2. Hague Convention, all the documents shall be notarized and duly apostillised.
  3. Neither Common wealth nations nor Hague Convention, all the documents shall be notarized before the Notary (Public) of such Country and the Certificate of the Notary (Public) shall be authenticated by a Diplomatic or Consular Officer empowered in this behalf under Section 3 of the Diplomatic and Consular Officers (Oaths and Fees) Act, 1948 or, where there is no such officer by any of the officials mentioned in Section 6 of the Commissioners of Oaths Act, 1889, or in any Act amending the same.
  4. Visited in India and intended to incorporate a Company, in such case the incorporation shall be allowed if, he/she is having a valid Business Visa.
  • In case of proofs which are in languages other than Hindi / English, the proofs should be translated in Hindi / English from professional translator carrying his details (name, signature, address) and seal. In the case of foreign nationals, translation done by the notary of home country is also acceptable.
  • 13. An Individual has DIN but he is not a Director in any Company or Designated Partner in a LLP. Is he required to file Form DIR-3 KYC?

    Irrespective of his appointment as Director in any Company or Designated Partner in a LLP, every individual who holds DIN is required to file Form DIR – 3 KYC.

    AUTHORED BY

    Mr. Ankit Singhi

    Partner & Head - Company Law Advisory

    ACS,LLB

    ankit@indiacp.com

    +91 11 40622208

    Request a Call
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