Combination of DIN with DPIN

MCA has decided to issue only one identification number to individuals for both the purposes of becoming a director and a designated partner to avoid duplication. With effect from July 9, 2011, the DIN is therefore integrated with the DPIN. Let us discuss Combination of DIN with DPIN.

Overview of DIN and DPIN

The eight-digit code is distributed continuously and can be used to identify individuals and prevent fraud by disclosing the companies they are associated with. The Central Government issues DINs or Director Identification Numbers, which are identity numbers that can be utilized to verify the identity of a candidate for director. 

Those who want to be recognized as a Designated Partner of a Limited Liability Company (LLP) must have a Designated Partner Identification Number, or DPIN. Stated differently, a person cannot be designated as a partner until the Ministry of Corporate Affairs has issued them a DPIN.

Justifications for merging DIN and DPIN

The reasons for combining DIN with DPIN are-

• Improved Compliance: In order for identity and address to be confirmed by pertinent papers, Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014 requires that anybody with a DIN or DPIN submit their KYC details once a year using the DIR 3 KYC e-form. The person is required to submit Form 4 to their Regional Operations Center to update the DIR 3 KYC e-Form if any of the information provided changes.

• Ease of doing business: DIN can be quickly obtained online and makes it simple for individuals to become managing partners or directors of firms or LLPs. Applicants must show a legitimate identity document with their date of birth and photo at DIN. Additional supporting documents, such as notarized copies of the passport, are also necessary for approval in the case of foreigners.

• Improved security: The central government issues a unique eight-digit identification number, or DIN, to everyone wishing to serve as a director in any firm or who is currently holding such a position. You can manage who can access files, folders, and trusted host domains with the use of advanced security tools. When on, Enhanced Security prevents access to potentially dangerous content.

Who applies for a DIN/DPIN?

To be nominated as a designated partner in an LLP of an already-existing LLP, an individual must apply for a DPIN in Form DIR-3, by Rule 10(1) (a) of the Limited Liability Partnership Rules, 2009.

A DIN must be applied for using Form DIR-3 before a person can be appointed as a director of an existing company, under Rule 9(1) of the Companies (Appointment of Directors) Rules, 2014 and Section 153 of the Companies Act 2013.

Obtaining DIN for Designated Partner

• The LLP Act will utilize a DIN as the DPIN if it has already been assigned. According to the Companies Act of 2013, a person’s DPIN, if they have been assigned one, will serve as their DIN. 
• If a person possesses both a DIN and a DPIN, the LLP Act and the Companies Act will use the DIN instead of the DPIN, rendering the DPIN null and void.

Takeaway

DIN and DPIN are interchangeable under the Companies Act and Limited Liability Partnership Act. However, it is crucial to remember that anyone wishing to join an LLP as a Designated Partner must apply for a DIN; otherwise, their DPIN may be cancelled, which could carry heavy fines. All DIN/DPIN holders are also required to submit KYC details through the annual submission of Form DIR-3 KYC to help verify information provided to government authorities.

In case of any query regarding Combination of DIN with DPIN, a team of expert advisors from Legal Window is here to assist you at every step. Feel free to reach us at [email protected].