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A director is a member of a company's board of directors, who is elected or appointed by shareholders to manage the company's business and affairs. Each and every director of a company is required to possess a valid DIN. DIN full form is Director Identification Number. The concept of DIN was first introduced in India with the insertion of Sections 266A to 266G of the Companies (Amendment) Act, 2006.
In this blog post, we shall understand what the director identification number is. If you are an aspiring director, then going through this post will help you understand the basics about the DIN number.
A Director Identification Number (DIN) is an exclusive identification number allotted by the Central Government to individuals who are aspiring to be directors or are currently serving as company directors. A DIN consists of 8 digits. The DIN sample is “CBIC-YYYY MM ZCDR NNNN.”
Once a director identification number certificate has been allotted to a director, it remains valid for lifetime. However, it can be deactivated by individuals who no longer intend to be directors of any company. Once DIN has been intentionally deactivated, the deactivation is irreversible.
A database containing director-related data is kept up to date by the DIN system. A DIN is associated with a certain person. This means that even if that person is in charge of several companies, they only need to have one DIN number. Moreover, if an individual moves from one company to join another one, the same DIN number is applicable.
The procedures to obtain the Director Identification Number (DIN) provided in detail in Sections 153 and 154 of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Qualification of Directors) Rules, 2014.
As per Section 157 of the Companies Act, 2013, companies are required to give the Registrar the Director Identification Numbers (DINs) of each of their directors within 15 days of receiving the intimidation. Companies that don't comply with this requirement are liable to a penalty ranging from ₹25,000 to ₹1,00,000. This penalty must be paid by each of the company's defaulting officers.
It is an automatically generated number after the DIN application. It is allotted in case of any defect in the application. A letter is provided in case of defect and resubmission. In that case, the application is re-filed with correction with the Chartered Accountant and Company Secretary within 15 days.
To check the authenticity and accuracy of a Director Identification Number (DIN), you can use Ministry of Corporate Affairs (MCA) databases and government records.
For director identification number verification, follow these steps:
Step 1: Visit the official website of MCA.
Step 2: Click on MCA services, then on FO Services and then Verify Din PAN Details of Director.
Step 3: Now, enter the DIN number of the Director.
Step 4: Finally, click on submit.
If any DIN number exists, its details will be displayed on your screen. DIN verification is recommended to prevent identity fraud and other types of fraud by individuals, and ensure smooth business operations.
The Director Identification Number is an 8-digit number unique to each director. Any individual wishing to be a company’s director or currently serving as a company’s director must possess a valid director ID number. DIN remains valid for lifetime unless it is surrendered by the director or cancelled by the central government.
A DIN is required for various official communications such as annual returns, RoC filing, DIN KYC information, and so on. Before appointing an individual as a director, the company must verify their DIN. DIN verification can be done by visiting the official website of MCA.
To change or remove a company’s director, connect with Registrationwala’s consultants!
Q1. Who needs a director identification number?
A. Anyone who is a company director or intends to be a company director requires a director identification number.
Q2. Who issues the director identification number?
A. The Ministry of Corporate Affairs issues Director Identification Numbers in India.
Q3. How many companies can a director serve?
A. In India, an individual may hold directorships in up to 20 companies at any one time. However, for public limited companies, this limit is 10 companies.
Q4. How many directors can an Indian private limited company have?
A. A private limited company in India must have at least 2 and a maximum of 15 directors.
This post was originally published in 2017 and has been updated on December 12, 2024, to provide you with the most current and accurate information.
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.
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