Directors Identification Number: Procedure for Alteration

In the realm of corporate governance, there exists a special number called the Directors Identification Number (DIN). It’s like a secret code given to directors, giving them a unique identity. But what happens when this code needs an alteration? Don’t worry, there’s a simple procedure to make it happen. Join us as we explore the process of altering the Directors Identification Number in company law, where directors can make changes and update their information. In this article, we will discuss the procedure for alteration of DIN.

What is a DIN?

A Director Identification Number (DIN) is a unique identification number assigned to individuals who hold or wish to hold directorial positions in companies registered in India. It is a mandatory requirement for anyone aspiring to become a director in a company and serves as a means of identification in corporate governance. The DIN is issued by the Ministry of Corporate Affairs (MCA) and acts as a distinctive mark for directors, helping to maintain transparency, accountability, and integrity in the corporate sector. Each DIN number for directors is unique to an individual and remains unchanged throughout their directorial career, even if they switch companies or hold multiple directorial positions.

Reasons for Alteration of DIN

There are several reasons why a Directors Identification Number in company law may need to be altered. These reasons include:

• Change in Personal Details: When a director changes their personal information such as their name, address, contact details, or other essential details, the DIN needs to be altered to reflect these updates accurately.
• Correction of Errors: In some cases, errors or inaccuracies may be discovered in the information provided during the initial DIN application. These errors could include misspellings, incorrect dates of birth, or other discrepancies. Alteration of the DIN is necessary to rectify these errors and ensure that the information associated with the director is correct.
• Updating Information: Directors may need to update their DIN to reflect changes in their professional information. For example, if a director acquires additional qualifications, changes their occupation, or obtains new certifications relevant to their directorial role, they may need to update their DIN accordingly.
• Reissue of DIN: In certain situations, the MCA may require a director to reapply for a DIN number. This can happen if the director DIN has been deactivated due to non-compliance with regulatory requirements or any other valid reasons determined by the authorities. Reissuing a DIN number for directors involves the alteration of the existing number or the allocation of a new number.
• Merger or Acquisition: In cases where companies undergo mergers, acquisitions, or other forms of corporate restructuring, the directors involved may need to alter their DIN to reflect the new corporate structure. This ensures that the director DIN aligns with the updated company details and hierarchy.

Procedure for Alteration of DIN

The alteration of DIN can be necessitated by several factors such as change in personal details, correction of errors, or updating information. The MCA in India has laid down a specific procedure to facilitate such alterations.Here is a step-by-step guide to the procedure for alteration of DIN:

• Initiate the process: The first step in altering a DIN is to initiate the process by filing the necessary forms with the concerned authorities. The alteration can be initiated by the DIN holder himself or by the company in which the individual holds the position of director.
• Obtain the required forms: The next step involves obtaining the required forms for the alteration of DIN. The form to be filed will depend on the nature of the alteration. The commonly used forms for DIN alteration include Form DIR-6, Form DIR-12, and Form DIR-3C.
• Fill in the details: Once the appropriate form is obtained, it is essential to carefully fill in all the required details. The form typically requires information such as the DIN holder’s name, current DIN, proposed alterations, and supporting documents.
• Attach supporting documents: Along with the filled-in form, it is crucial to attach the necessary supporting documents to substantiate the proposed alterations. These documents may include proof of identity, proof of address, and any other relevant documents required by the MCA.
• Payment of fees: The alteration of DIN involves the payment of prescribed fees. The fees may vary depending on the nature of the alteration and can be paid online through the MCA portal or any authorized bank.
• Submission of the form: After filling in the form, attaching the supporting documents, and making the payment, the next step is to submit the form to the MCA. The form can be submitted online through the MCA portal or in physical form, depending on the specific requirements.
• Verification and approval: Once the form is submitted, it undergoes a verification process by the concerned authorities. They examine the form, supporting documents, and verify the proposed alterations. If everything is found to be in order, the authorities approve the alteration of the DIN.
• Intimation of alteration: Upon approval of the DIN alteration, the MCA intimates the DIN holder about the changes made. The DIN holder is also required to update the altered details in the records maintained by the company in which they hold the position of director.

Grounds on which a DIN Alteration Request can be rejected

Below are the grounds on which the application of a DIN change can be refused despite following the procedure for alteration of DIN:

Other Points related to DIN

A few points related to DIN include-

• The director must inform all companies where he acts as a director, within one month of receiving the DIN.
• After receiving the DIN from the director, the respective company must inform the company registrar about the director’s DIN within 15 days.

If the director or the company fails to comply with these provisions within the stipulated period, it will be considered a violation of the law and the responsible party will be punished according to the law.

Final words

In conclusion, the Director Identification Number (DIN) is a vital identification number for directors in Indian companies. The procedure for alteration of DIN involves initiating the process, obtaining the required forms, filling in the details, attaching supporting documents, paying the fees, submitting the form, and undergoing verification and approval. Timely and accurate alteration of DIN ensures that the records maintained by the company and the regulatory authorities remain updated and reflect the accurate details of the director.

In case of any query regarding the procedure for alteration of DIN, a team of expert advisors from Legal Window is here to assist you at every step. Feel free to reach us atadmin@legalwindow.in.