WHAT IS DIR-3 KYC ?
• KYC or Know your customer is the method or process of a business identifying and verifying the identity of its clients.
• The term is mostly used in banking and anti-money laundering regulations which govern these activities.
• Central Government has now made mandatory KYC for Directors as well.
• Similar to Bank KYC, now Government wants to know the Directors and expect them to submit a yearly intimation about their profile through KYC and specify any changes in the details.
• It’s a new form introduced first time by the Ministry of Corporate Affairs (MCA) wide its notification dated July 5, 2018, by issuing an amendment to Companies (Appointment and Qualification of Directors) Rules.
• DIN (Director Identification Number) is 8 digits unique identification number for directors and it is required to be obtained by every individual who intends to become a director in a company.
WHO IS REQUIRED TO FILE E-FORM DIR-3 KYC?
• Every director / designated partner holding DIN (Director Identification Number) as on 31st March of the financial year has to file e-form on or before 30th April of next immediate financial year.
• For example, if DIN was allotted as on 31st March 2019 then DIN holder has to file form DIR-3 KYC on or before 30th April 2019.
• Provided if DIN has been already obtained as on or before 31st March 2018 then an E- form is required to be filed on or before 31st August 2018.
WHAT HAPPENS IF E-FORM DIR-3 KYC IS NOT FILED WITHIN THE DUE DATE ?
• In cases the director who is supposed to file the e-Form does not file it by the 31st of August 2018 on MCA 21 portal, the department will mark the DIN of such director as ‘Deactivated’ with the reason shown as ‘Non-filing of DIR-3 KYC’.
• If the director wishes to re-activate his DIN in future by filing the missed out E-Form DIR-3 KYC, he can do so after paying a late fee of 5,000 rupees. This fee would be payable on or after September 1, 2018.
DOCUMENTS:-
1. Copy of Pan card
2. Copy of Aadhaar card
3. Proof of permanent address (anyone) :
• Bank Statement
• Electricity bill/ Telephone Bill/ Gas Bill/ Ration Card
• Driving License
• Aadhaar Card/ Election Card
4. Copy of Passport (mandatory in case if having)
5. Digital Signature of the Director
IMPORTANCE OF DIR 3 KYC:–
As part of updating its registry, MCA would be conducting KYC of all Directors of all companies annually through a new e-form viz. DIR-3 KYC. Accordingly, every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status, would be mandatorily required to file form DIR-3 KYC on or before 31st August,2018. While filing the form, the Unique Personal Mobile Number and Personal Email ID would have to be mandatorily indicated and would be duly verified by One Time Password (OTP). The form should be filed by every Director using his own DSC (Class – 2) and should be duly certified by a practicing professional (CA/CS/CMA). Filing of the same would be mandatory for Disqualified Directors also.
After expiry of the due date by which the KYC form is to be filed, the MCA21 system will mark all approved DINs (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason as ‘Non-filing of DIR-3 KYC.After the due date filing of DIR-3 KYC in respect of such deactivated DINs shall be allowed upon payment of a specified fee only, without prejudice to any other action that may be taken.
Registration Arena can help you with DIR-3 KYC at a cost of Rs 499 , if Digital Signature is also required to be provided for DIR-3 KYC total cost would be Rs 1499.
