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No Extension for Filing DIR-3 KYC: What is Next Now?

MCA Stands firm on its Decision on no Further Extension for filing DIR-KYC Beyond 15^th September 2018

There is huge chaos in the market due to the MCA^[1] (Ministry of Corporate Affairs) stand on DIR-3 KYC, according to the Times of India report, it has been reported that 21 Lakh Directors have failed to file it, but nothing has changed the MCA stand. In fact deactivation process for such non- complaint directors have been initiated from the 16^th of September 2018 itself.

The last late for DIR-3 KYC was 15^th September 2018, whereby the MCA21 portal shall mark all the approved DINs for which filing DIR-3 KYC has not been filed, as the DEACTIVATED. DIR-3 KYC is mandatory for disqualified directors also. In case of delay penalty of Rs Rs 5000/- is to be charged with effect from 16/09/2018. A penalty of Rs. 5,000 shall be levied on all such directors who fail to make timely compliance with regard to the filing e-Form after 16^th September 2018.

During the process of Company registration India, along with the form the new directors DIN can also be obtained, this was not possible earlier. Now for Company Registration e-file SPICE-32 Form is to be filled, which facilitates the allocation of DIN to the proposed new directors. Now the MCA wants the KYC update for all the directors irrespective of there nationality.

Previous Scenario: All the directors are it Indian or foreign nationals who have already been allotted the DIN on or before 31st March 2018 and their status of DIN appearing as “Approved” are mandatorily required to update their KYC by filing the e-form DIR-3 KYC on or before 15th September 2018. First Deadline:-The previous deadline for filing DIR-3 KYC was 31/08/2018 vide the notification issued on 21/08/2018. This notification was introduced via amendment in companies (Registration offices and fees) Fourth Amendment Rules, 2018 and Companies (Appointment and qualification of directors) Fifth Amendment Rules, 2018. Second deadline: – For e-filing DIR-3 KYC date was extended from 31/08/2018 to the 15/09/2018. The form was allowed to be filled in without any penalty until 15th September 2018. Unfortunately, this was the last date for DIR-3 KYC is 15/09/2018 only.No further extension is granted. The power to amend the rule is provided under Section 396,398,399,403,404, and 469(1) and 469 (2) of the Companies act 2013.

Read our article:MCA extension for filing DIR-3 KYC

Now, is there any Option to file DIR-3 KYC?

In case you have failed to file the E-form filing DIR-3 KYC you can file it after 16/09/2018 with a penalty and the de-activated DIN can be Re-activated along with the fees as prescribed under Companies (Registration Offices and Fees) Rules, 2014. The Fees for filing E-form filing DIR-3 KYC has been prescribed under Rule 12A of Companies (Appointment and Qualification of Directors) Rules, 2014.

Documents to file DIR-3 KYC:

1. The self-attested copy of the Identity proof of the Director.
2. Address Proof – the Aadhaar Card with an updated Mobile number with UIDAI and should be Self-attested Copy
3. Personal Mobile Number and E-mail ID of directors for the purpose of OTP Verification. Mobile No. and E-mail ID of directors himself/herself are
4. Digital Signature of the director. For a Foreign National Director, a passport is mandatory.
5. Passport self-attested copy, if available.

Note that the E-form DIR-3 KYC is required to be mandatorily duly certified by a Practicing Chartered Accountant, Practicing Company Secretary or Practicing Cost Accountant.

Once it is uploaded email regarding approval of the form shall be mailed on the personal email ID submitted. An SRN will also be generated for the applicant. This SRN shall be used for future correspondence with the MCA.

Is there any room for MCA to extend the date beyond 15^th September 2018?

The failure of 21 Lac directors to file DIR-3 KYC has left MCA wondering what went wrong. Are all of this is sheer ignorance? Or is there any possibility for genuine reasons for non- filing the DIR-3 KYC? As many applicants have complained that the site was not properly functional for the period between 13th September to 15th September. Also, there were glitches in uploading the digital signatures.” Even the ICAI President Mr. Naveen ND Gupta has written in a letter and conveyed about the same.

Considering all this it may happen that MCA may give another opportunity of 15 days to 21 lac directors who failed to comply with KYC compliance requirements or at least the penalty for late filing may be reduced. However, nothing on paper, nothing on records via any notifications or anything of that sort has officially been published neither there is any notification of MCA in this regard.

The corporate bodies like ICAI, ICSI, other corporate bodies and many CA/CS professionals have put up their representations to the ministry, requesting them to extend the period by another 15 days.  Even PIL has been filed in this regard. As of now, it’s all on reports only.

In case you are one of those Directors who has failed to file the DIR-3 KYC, keeps a watch on MCA next steps, and anyways still you can file it with the fees of Rs 5000/-.

In case of doubt or to know more or to file the DIR-3 KYC, you can contact our expert team, click here to establish the contact.

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