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What is Director KYC (DIR-3 KYC) and Procedural Norms of Filing E-Form DIR-3 KYC With MCA?

Before starting with DIR-3 KYC, it is important to get knowledge of some important terms. First, we will discuss the term DIN (Director Identification Number). As its name suggests 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.

Now we will come to the term KYC which stands for “Know your Customer”. Director KYC has been introduced by the government in order to reconfirm the identity of directors.

Introductory Norms of E-form DIR-3 KYC

Recently MCA (Ministry of Corporate Affairs) has introduced the new e-form DIR-3 KYC as per Rule 12A ‘Companies (Appointment and Qualification of Directors) Fourth Amendment Rules 2018, via a notification dated 05^th July 2018 and came into effect from 10^th July 2018. Along with this, MCA (Ministry of Corporate Affairs) has notified the restoration procedure for deactivated DIN (Director Identification Number) of the directors.

Why has E-form DIR-3 KYC been introduced by the Central Government?

E-form DIR-3 KYC has been introduced with a view to collect information of directors of all the companies consisting their address, e-mail ID, and current mobile number. Provided information given by the directors must be related to them, for example, the mobile number must be updated with UIDAI. This step has been taken in order to create the transparency of information. This will help MCA in verifying credentials of directors and weed out the bogus directorships.

Before this, the government has taken strike-off (Company dissolution) action against more than 3 lakh companies because of which more than 6 lakh directors got directly impacted and their DIN got disqualified. By introducing this new rule 12A, it is required to update DIN (Director Identification Number) for all the directors and all designated partner of all the LLPs to comply with the rule, no matter their DIN is active or inactive and directors who’re having disqualified DIN.

Who is required to file e-form DIR-3 KYC?

Every director / designated partner holding DIN (Director Identification Number) as on 31^st March of the financial year has to file e-form DIR-3-KYC on or before 30th April of next immediate financial year.

In case DIN was allotted as on 31^st March 2019 then DIN holder has to file form DIR-3 KYC on or before 30^th April 2019.

Provided if DIN has been already obtained as on 31^st March 2018 then E- form DIR-3 KYC is required to be filed on or before 31^st August 2018

Note* It has to be filed even if the DIN is inactive or director having disqualified DIN.

What is the due date of DIR-3 KYC?

Due date of filing of DIR-3KYC is 30th April of Immediate Financial Year however if the DIN has been obtained on or before 31^st March 2018 then the due date is 31^st August 2018.

What are the documents required to file E-form DIR-3 KYC?

Following documents shall be required to file E-form DIR-3 KYC:

• PAN for Identity Proof
• Aadhar Card for Address Proof (Provided mobile number must be updated with UIDAI)
• Latest passport size Photograph
• Personal Mobile Number and E-mail ID of director for the purpose of OTP Verification
• DSC (Digital Signature Certificate of the director) which must be registered on MCA Portal.
• Passport is mandatory in case of foreign national only

Note*: Documents must be self-attested

Who will certify the E-form DIR-3 KYC?

The E-form DIR-3 KYC is required to be duly certified by the Practicing Chartered Accountant (PCA), Practicing Company Secretary (PCS) or Practicing Cost Accountant.

What is the fee of filing E-form DIR-3 KYC?

If the e-form is required to be filed till the 30^th April of every financial year, then there will be no fee however if one has to file e-form DIR-3 KYC up to 31^st August, 2018 but not able to file the same till the last date then RS.5000/- shall be payable after 31^st August 2018.

Does the DIR 3 KYC form is also applicable on LLP?

It is mandatory for all the partner/designated partner of an LLP to file e-form DIR-3 KYC on or before the due date 31st August 2018 who are holding a valid DIN before the 31st March 2018.

What if the director fails to file e-form DIR-3 KYC?

In case of non-filing of DIR-3 KYC by the DIN holders (allotted on or before 2018), MCA will mark “deactivated”.

Warning issued by MCA

What will be the consequences of non-filing of e-form DIR-3 KYC?

In case of the filing of e-form DIR-3 KYC after 31^st August 2018 then DIN holder has to pay a specified fee of Rs. 5,000 without prejudice to any other action that may be taken.

Is it still requires to file E-form DIR-3 KYC if a DIN holder is not holding Directorship in any company for a whole year or years?

Yes, even if the DIN holder is not holding directorship in any Company for a year or for more than one year, such person has to file e-form DIR-3 KYC every financial year on or before 30th April.

Is it mandatory to have DSC to file DIR-3 KYC?

Yes in order to file e-form DIR-3 KYC, it is mandatory to affix DSC of the applicant director.

Can I mention the email ID and Mobile Number of any other person in e-form DIR 3 KYC?

No, in e-form DIR-3 KYC specifically, the director has to give its own email Id and mobile number otherwise it will be considered as default under Rule 12.

What are the basic requirements for professionals?

It is required for a professional to give a declaration that he/ she are engaged in Certification/verification of this e-form.

What will be the course of action for the professional to certify the e- form DIR-3 KYC?

• Professional must obtain the engagement Letter from the Director
• Professionals have to mention all the details mentioned in e-form DIR-3 KYC in the Engagement
• They have to confirm that the Mobile No. and email ID belongs to the applicant Director only
• Professionals should keep a copy of the form and attachments in their record.

Note*: Format for engagement letter is given below:

Format of Engagement Letter for DIR -3 KYC

DIR-3 KYC Requirements in Tabular Form

Sr. No.	Particulars of E-form DIR-3 KYC	Description
1.	Introduced on	10th July 2018
2.	Filing Time	Annually
3.	Due Date	31st August 2018 for every director who has DIN on or before the 31st March 2018. 30th April of every year in any other case
4.	Basic Requirements	The personal mobile number and email ID of director for the OTP verification.
5.	Professional Certification	It will be certified by the practicing professional such as (CA/Cs/ CMA)
6.	Consequences of Non-Filing	In case of non-filing DIN will be deactivated by the authority and it will get reactivated only after the filing of the prescribed e-form on the payment of Rs.5000/-.

 DIR-3 KYC Form