The DIR-3 KYC is an annual compliance process mandated by the Ministry of Corporate Affairs (MCA) for directors. It involves submitting updated personal details, including PAN, email, phone number, and address, to maintain an active status of their Director Identification Number (DIN). This KYC process can be completed online through the MCA portal using the DIR-3 KYC form. It ensures transparency and helps keep the government’s records up to date. Failure to comply within the specified deadline may result in the deactivation of the DIN and penalties for the director.
Who is Required to File DIR-3 KYC Form
All directors who have been allotted a Director Identification Number (DIN) and whose DIN is approved by the MCA are required to file the DIR-3 KYC form annually. This applies to both Indian and foreign directors, ensuring their contact and personal details are kept up-to-date with the Ministry of Corporate Affairs. Non-compliance can lead to the deactivation of the DIN and additional penalties.
From the Financial Year 2019-20 onwards, it is mandatory for every director who has been allotted a DIN on or before the end of the financial year and whose DIN status is ‘Approved’, will have to file eForm DIR-3 KYC before 30th September the immediately next financial year.
Who Can File eform DIR-KYC
The eForm DIR-3 KYC must be filed annually by any director holding an active DIN to update their personal details with the MCA. This includes Indian and foreign directors. Failure to file on time may result in the deactivation of the DIN and penalties.
Requirements of Filing eForm DIR-3 KYC
- The director’s digital signature is necessary for submitting the eForm.
- A valid email address and phone number of the director are required and will be verified through OTP.
- Both the DIN holder and a practicing professional (CA/CS/CMA) must sign the DIR-3 KYC form.
- The form requires certification and a declaration from a practicing professional, such as a Chartered Accountant, Company Secretary, or Cost and Management Accountant.
Documents Required for Filing DIR-3 KYC
- PAN Card (Proof of identity)
- Aadhar Card (Proof of Residency)
- Passport (in case of foreign national)
- Personal mobile number and email address
Repercussion of Not Filing Form DIR -3 KYC on Time
Failure to file the DIR-3 KYC form on time leads to the deactivation of the Director Identification Number (DIN), marking it as “Deactivated due to non-filing.” Directors will be unable to conduct any transactions involving their DIN, such as forming new companies or making directorial changes. To reactivate the DIN, the director must file the form along with a late fee of ₹5,000, as per the Companies Act. This delay can result in compliance issues and disrupt the director’s ability to perform essential corporate duties.
Penalty of late filing DIR-3 KYC
If the DIR-3 KYC form is not filed on time, a penalty of ₹5,000 is imposed. This late fee is necessary to reactivate a deactivated DIN. Directors must pay this amount to restore their DIN’s status. The penalty helps enforce timely compliance with regulatory requirements. Delays in filing can lead to additional complications and disruptions in corporate activities.