Director KYC (DIR 3 KYC)

DIN (Director Identification Number) is an 8-digit number that is allotted to every individual who intends to become a director in a company or a designated partner of an LLP and KYC (Know your Customer) is a method for identifying and verifying the identity of the clients in a business.

As a part of updating the registry and yearly verification of the profile of directors/designated partners with the government, the Ministry of Corporate Affairs (MCA) has introduced a new E-form DIR-3 KYC to be submitted every year by all the persons who are the directors of a company or designated partners of an LLP or person holding a DIN (Director Identification Number).

The particulars and information of directors help the government to trace and verify the details such as identity, address, contact details, and other information of the director/designated partner holding DIN.

Who Needs To File Directors KYC (DIR-3-KYC)

• Every individual person who holds a Director Identification Number (DIN) as of 31st March of the financial year has to file an E-Form DIR-3-KYC on or before 30th September of the next financial year.
• For example, if a person is allotted DIN between 1st April 2020 to 31st March 2021, then he has to file Form DIR-3-KYC by 30th September 2021
• In the case of LLP, a Designated partner is allotted Designated Partner Identification Number (DPIN) by MCA who is also equally obliged to file DIR-3-KYC every year on or before 30th September of the next financial year.
• A person can also update his details including address, mobile number, email id, etc. using Form DIR-3-KYC
• It is to be noted that Form DIR-3-KYC has to be filed by everyone who holds a DIN, the fact that presently he is not a Director or Designated Partner of any Company/LLP does not rescue him/her from filing DIR-3-KYC with MCA.

The following are the effects of not filling the form DIR-3-KYC within the time period as specified :

• The MCA shall mark the DIN of such director as “Deactivated” with the reason “non-filling of form DIR3-KYC”.
• Director / Designated Partner with deactivated DIN cannot incorporate a new Company or LLP in the future until the DIN is reactivated again.
• Such Person cannot use his DIN for any kind of Company or LLP related compliances such as ROC Returns, Change in Directors, Auditor Appointment etc which may also result in striking off of the Company / LLP.
• The Director / Designated Partner with deactivated DIN may create a negative impact during the fundraising or loan proposals of the Company/LLP.
• If the person files the form DIR-3-KYC after the specified time period, then he shall be charged with a fine of Rs. 5000/ by the MCA.