What are the Mandatory KYC Requirements for all the Directors?

According to the recent announcements made by the ministry of corporate affairs with effect from 10 July 2018, all the people acting like directors are required to comply with the annual KYC requirements through e-form DIR-3KYC in order to keep their DIN activated and avoid the levy of any hefty penalty

Directors Identification Number (DIN) is a unique 8 digit number that is required to be obtained by every person desiring to act as a director.   This number is allotted by the central government to an existing person or the person intending to act like a director. Only one DIN number is required to be obtained by the director to act as the same in multiple companies at one time.  Also, the same DIN number can be used by the director to act as one in different companies. This means that in case the director leaves one company and joins another one the same DIN number can be used by him. In order to obtain the director’s Identification Number, a person can make an application through DIR-3.

Who is required to comply with KYC requirement?

Any person who has obtained the DIN number before or on 31st March 2018 or whose DIN status is approved is required to submit his KYC details with the ministry of corporate affairs. Moreover, it is also mandatory for the directors who are disqualified from acting like one according to the ministry rules and regulations.

Due Date to conduct KYC updating?

In order to comply with the rules, all the above-mentioned directors are required to update their KYC details by 15 September 2018.

Things to be considered for filing the E-Form DIR-3 KYC

There are certain things that are required to be considered before filing the e-form DIR-3 KYC.  Here we listed out all of these things-

1. While filing the updated e-form the director's e-mail id and the phone number is required to be provided by the applicant. The correctness of both id and phone number will be verified by the use of a one-time password (OTP).
2. This form is required to be filed by the attaching the digital signature certificate of the director whose KYC is being updated.
3. The last step to file this form is that the correctness of all the details and information provided in the form shall be ensured by getting it certified by the practicing Chartered Accountant or Company Secretary or Cost and Management Accountant.

Consequence of non-compliance

In order to ensure the compliance with the rules of KYC strict measures has been applied by the ministry of corporate affairs. If any directors fail to file this updated form by 15 September 2018 his DIN will be marked as deactivated by the department. Moreover, before the due date filing of this form is free of cost but after the due date, the form can be only be allowed upon payment of a specified fee of Rs. 5,000/- only, without prejudice to any other action that may be taken.

For more information about Filing of DIR-3 KYC  visit Registrationwala.com

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.