What is DIR-3 KYC: Documents Requirement, Form Filing and Due date

KYC stands for “Know your customer”. It is a process initiated by all banks, financial institutions and other departments to know their client’s identity by verifying his personal details like Mobile number, E-mail Id, PAN, Passport, etc. well in advance.

The Ministry of Corporate affairs have also undertaken the process of KYC of DIN holders. In this process, details of Directors having Director Identification Number (DIN) are verified with the help of E-form DIR-3 KYC. This verification of personal details helps the Ministry in tracing the directors or designated partners in case of any non-compliance or fraud committed by them. KYC of DIN holders ensures Ministry that true and correct particulars are uploaded on the registry of MCA.

What is DIR-3 KYC form, purpose of filing and who is required to file the same?

DIR-3 KYC is an electronic form which is launched by Ministry of Corporate Affairs to update the details of Directors having DIN through this e-form. Every individual having DIN or DPIN as on 31^st March of Financial Year shall require to submit E-form DIR-3 KYC to the Central Government on or before 30^th September of immediate next Financial Year.

Further, as per MCA amendment, if any individual is having DIN or DPIN as on 31^st March, 2018 shall require to file Form DIR-3 KYC on or before 5^th October, 2018. The DIN status for filing Form DIR-3 KYC shall be approved. If an individual who intends to update his personal information like Mobile number or E-mail ID, the same shall also be update through e-form DIR-3 KYC.

DIR-3 KYC is required to be filed for the purpose that Government seek updated particulars of the directors and to take regulatory actions against the director in case of fraud or non-compliance. There are two-fold purpose of filing Form DIR-3 KYC such as:

• Filing such form ensures that updated data is available with the Ministry of Corporate affairs of an individual holding DIN.
• To deactivate DIN’s which are not being used by the directors or where information available is not updated.

An individual who holds DIN on 31^st March             every year is required to file e-form DIR-3 KYC and person who wish to update his personal information like mobile number or E-mail ID is required to file the same.

What is the due date of filing DIR-3 KYC form and consequences of non-filing Form DIR-3 KYC?

Every individual having DIN or DPIN as on 31^st March of Financial Year shall require to submit E-form DIR-3 KYC to the Central Government on or before 30^th September of immediate next Financial Year. If any individual is having DIN or DPIN as on 31^st March, 2018 shall require to file Form DIR-3 KYC on or before 5^th October, 2018. The DIN status for filing Form DIR-3 KYC shall be approved.

If a Director is unable or fails to file e-form DIR-3 KYC on MCA portal by the due date, then DIN of such director shall be marked as ‘Deactivated due to non-filing of DIR-3 KYC’ by the Ministry. If a director wishes to re-activate his DIN, then he has to file e-form DIR-3 KYC along with a fee of Rs. 5000/-. Otherwise, no fee is required to be paid if such form is filed within stipulated time period.

Documents required to file Form DIR-3 KYC

Following documents are required to be attach with form DIR-3 KYC such as:

• Mandatory proof of permanent address such as Passport or Aadhar Card or Voter Id card or Driving License or Bank Statement or Any utility bill and all the documents shall be Self attested and should not be older than 2 months.
• If the present address is not same as Permanent address, then either Bank Statement or Utility Bills are required to be attached which should not be older than 2 months and must be self-attested.
• Copy of passport (if any)
• Copy of Aadhar Card
• Details of nationality
• Permanent Account Number (PAN)
• Personal Mobile Number or E-mail Id

Steps or procedure involved in filing Form DIR-3 KYC

Steps involved in filing e-form DIR-3 KYC are as follows:

• First and foremost, step is to download DIR-3 KYC form from the MCA portal.
• Required details in the form needs to filled by the director such as Details of the approved DIN, First and Last name of the director and of his father, Address of the director needs to be mentioned and it should be authenticated with the PAN, Declaration of Nationality, Age declaration as director below the age of 18 years is not required to file this form.
• PAN of the director is mandatorily verified by clicking on the ‘Verify income tax PAN’ button. System then verifies the same on the basis of PAN card number.
• Contact details needs to be updated by entering the Mobile number or E-mail ID and which is verified by generating OTP. Separate OTPs are generated for Mobile number and E-mail address after clicking on ‘Generate OTP’ button.
• Documents which are mentioned above are attached to this form and these documents must be attested.
• After filling all the required details, the form shall be digitally signed by the Practicing Chartered Accountant or Practicing Company Secretary or Practicing Cost Accountant. The details of such practicing professional shall be furnished along with his/her digital signature.
• Submit the form and after successful submission SRN is generated and the applicant shall receive an acknowledgement receipt of the form on his/her mail Id.

What is e-form DIR-3 KYC web?

If the director has already filed E-form DIR-3 KYC in any previous Financial Year and all his/her personal details like name, address, mobile number, e-mail Id, etc. are as it is then, he needs to file e-form DIR-3 KYC web for his/her annual KYC.

Conclusion

In order to fulfil the purpose of imposing penalties or imprisonment or both in case directors are in default, an updated personal detail of the directors needs to be maintained by the Ministry of Corporate Affairs so that Ministry can easily communicate the same whenever required. This is the primary reason behind introduction of e-form DIR-3 KYC. It can be said that it is a good corporate governance measure to abolish shell companies and fraudulent directors.

Contact Legal Window to file your DIR-3 KYC form today.