All about Director Identification Number (DIN)

Director Identification Number (DIN) was introduced in 2006 under section 266A- 266G of the Companies (Amendment) Act, 2006. Under this, all the directors have to obtain a DIN. Directors are the key policymakers and look into the management of the company. The Companies Act, 2013 discusses in depth about the directors of a company, the number of directors allowed, and how a director is appointed. Here we will be discussing everything about director identification number, from the forms needed for DIN application to the reasons for rejection of DIN application.

Meaning of Direction Identification Number (DIN)

DIN is a unique identification number that is allotted by the Central Government under the Companies Act, 2013. It is allotted to an individual who is appointed as the director or is going to be appointed as director. The individual has to make an application in Form DIR-3 under Section 153 and 154 in case of an existing company or through the SPICE+ form in case of a new company. DIN includes the Designated Partnership Identification Number (DPIN) which is issued under the Limited Liability Partnership Act, 2008 section 7. DIN has lifetime validity and it is the same irrespective of the number of companies the individual is serving as a director.

Procedure for obtaining DIN

The applicant has to make an application under e-form DIR-3 to the Central Government. Section 153 of the Companies Act, 2013 and The of Companies (Appointment and Qualification of Directors) Rules, 2014, Rule 9 states the procedure for obtaining DIN. Following is the step-by-step procedure-

• The applicant has to file the form through the official website of MCA.
• Download company form DIR-3 under the DINs forms section
• The applicant has to fill in all the personal details in the Form DIR-3
• and attach the necessary documents. The application form has to be attached with the photograph. It has to be signed and submitted by the applicant using his verified DSC.
• It has to be verified by the director, CS, manager, or the CEO of the company.
• Now the applicant has to submit the form along with fees. Once the payment is complete. The application is processed in 1 month.
• An approved DIN is generated.

New incorporated company-DIN

In case the company is new, the individual who has to be appointed as a director can apply for DIN through the SPICE+ form at the time of incorporation.

What is SPICE+ Form?

SPICE+ form is used for the allotment of DIN, it needs to be submitted along with the other documents, details of the directors, subscribers, e-Memorandum of Understanding (SPICE+ MOA), and the SPICE+ AOA. After the document submission, the new company receives the CIN and the director gets the DIN. However, only three directors can apply for DIN during the incorporation of the company.

What is Form DIR-3?

Form DIR-3 is filed under section 153 and Rule 9(1). Every individual who is to be appointed as a director of an existing company has to apply for DIN through this form along with the prescribed fees under the Companies (Registration Office and Fees) Rules, 2014.

Is it mandatory for all directors?

It is mandatory for every person who is going to be appointed as director of a company to get a DIN.

Fees for DIN application

If a DIN application is filed at the time of incorporation, then no separate fees have to be submitted for obtaining DIN. In the case of an existing company, Rs. 500 fee is to be paid online. Only electronic fee payment is allowed.

The applicant has to get registered on the official portal of MCA and upload e-Form DIR-3. The form is further processed only after the payment of fees.

In 2020 March, all the DIN holders were marked as deactivated because of non-filing of DIR-3, and companies which come under active non-compliant were encouraged to become compliant and file DIR-3/ACTIVE without any additional fees.

DIN Allotment

Section 154 of the Companies Act and Rule 9 of the Companies (Appointment and Qualification of Directors) Rules, 2014 also discuss about DIN allotment.

• When an applicant submits the application along with the prescribed fees on the MCA portal the allotment number is generated.
• The Central Government processes the application for allotment and approve or rejects the DIN application. The approval or rejection is intimated through letter or mail within 1 month of application.
• If the application is defective, the Central Government sends the intimation about the defects. The applicant has to rectify the same.
• It is valid for a lifetime and cannot be further allotted to anyone else.

Documents requirement for DIN

• Passport size photograph.
• Government-approved identification proof for example PAN (mandatory), voter ID.
• Proof of residence like Aadhar, passport, driving license, electricity/telephone bill, or bank statement.
• The board resolution for proposing the appointment of the director.
• Duly verified signature.

Key Guidelines for DIN

• The allotment has to be completed within 1 month of receiving the application as prescribed under section 154 of the Companies Act.
• The director has to intimate the allotment of DIN under section 156 to the company in which he is appointed as a director within 1 month of receiving the DIN.
• Under section 157, the company has to inform about DIN to the Registrar along with requisite fees and in a prescribed format within 15 days. Section 157 further states that if the company fails to comply with the provision, a fine of Rs. 25,000 to Rs. 1 Lakh will be levied.
• Section 155 says no individual can apply for another DIN if he has already been allotted a DIN under section 154.

Grounds for Rejection of DIN

The authorities can cancel the DIN allotment under the following conditions-

• If duplicate DIN is issued.
• Non-submission of relevant documents.
• Death of the respective director.
• Person declared unsound or insolvent.
• DIN is obtained by fraudulent means.

The applicant has to make sure that all the PAN details and personal details mentioned in the DIR-3 matches. If there is a mismatch the application will be rejected. However, the Central Government has to notify about the rejection and give reasons for the same. After that, the applicant can rectify any wrong information within 15 days. After the government is satisfied, it grants the DIN.

Surrender of DIN

DIN can be surrendered under Rule 11 of Companies (Appointment and Qualification of Directors) Rules, 2014 on the following grounds-

• If the DIN was obtained wrongfully and fraudulently.
• If the individual is declared unsound, or insolvent.
• If the person has died.
• If there is a duplicate DIN and it has been merged with other.
• Where an application is filed by the DIN holder in Form DIR-5 for surrendering his DIN along with a declaration that he has never been appointed as a director in any company and the said DIN cannot be used for filing any documents with any authority.

Application to Central Government for the surrender of DIN

The Companies (Appointment and Qualification of Directors) Rules, 2014 in Rule 11 explain about the surrender of DIN. The applicant has to make an application to the authorities in form DIR-5 along with a declaration stating that he will never be appointed as a director and not use DIN for filing any document. DIN can be reactivated by the authorities if the applicant has done his KYC.

Reactivation of DIN

An individual can get re-activation of DIN by filing e-form DIR-3 KYC and Rs. 5000 fees. This can be done only if Din is deactivated because of the non-filing of DIR-3 KYC. But if the DIN is deactivated because the company is marked as “ACTIVE Non-Compliant” then the individual has to ensure that the company files an e-form INC-22A for reactivation.

Conclusion

The Companies Act, 2013 has discussed about Director Identification Number in Chapter XI appointment and qualification of directors. It has made the process of filing application for DIN a lot easier through e-forms. Since the application and fees are electronically filed the process is quick, smooth and transparent. Moreover, the companies can now keep a track of the application until the allotment of DIN.