MCA Notification

Web-Based KYC Verification Service for Directors by MCA

In a recent update, the Ministry of Corporate Affairs has issued new guidelines. The guidelines are in relation to KYC verification of existing directors of all types of companies.  As a relief provision, the directors can now use Web based KYC verification services.

Directors who already filed e-form DIR-3 KYC for any previous financial year can now submit e-form DIR-3 KYC through this web-enabled KYC service. However, if the concerned person wants to update his mobile number or email address, one needs to file e-form DIR-3.

Objective behind filing KYC of Directors

The objectives behind filing Director KYC are as follows:

• Record  correct and accurate details regarding the DIN holder;
• Verify the details of the Holder if he/she furnishes any incorrect information;
• To update the details of the DIN Holder if there is any change in their address or contact details.

E-form DIR-3 KYC

According to the MCA’s recent announcement, any director who was allotted a DIN by or on 31st March 2018 and whose DIN is in approved status is required to submit his KYC details to the Ministry of Corporate Affairs. Moreover, this procedure is mandatory for the disqualified directors as well.

From the FY 2019-20 onwards, it is mandatory for every director who has been allotted DIN on or before the end of the financial year and whose DIN is in approved status, is required to file form DIR-3 KYC prior to 30th September of the immediate next financial year.

For instance- For the FY 2020-21, the directors having DIN or Director Partner Identification Number (DPIN) and the directors allotted with a DIN or DPIN by March 31st 2021, should file the e-Form DIR-3 KYC before September 30th 2021.

Steps for DIR 3 KYC- Web based KYC verification

The procedure for DIR 3 KYC- Web based KYC is as follows:

Step-1 Log in to the MCA Account^[1];

Step-2 Navigate to the MCA Services then DIN Services – *DIR 3 KYC WEB*;

Step-3 Enter DIN no. to be verified;

Step-4 Generate OTP for email id & mobile no.;

Step-5 Enter the OTP in the respective boxes;

Step-6 Confirm the details of person appearing on the screen;

Step-7 Click on Submit;

Step-8 Generate a Zero Rupee Challan;

Step-9 Check SRN status for confirming the KYC verification.

Who should file KYC through web based DIR-3 KYC verification?

All Directors who meet both conditions mentioned below can file web based DIR-3 KYC:

• Filed e-Form DIR-3 KYC in the previous financial year;
• Does not intend to update their mobile no. and mail ID to the Ministry.

What if the director wants to update information?

If the director wants to update information, the DIR – 3 KYC form must be filed. If you have DIN and has not filed the KYC form or person who has already filed it but needs to update the information on the portal, then DIN KYC e-form should be filed.

Once the form is filed, then the director can confirm their details on the newly introduced web-based portal.

Fees for Form DIR-3 KYC verification

If Form DIR-3 KYC is filed within the due date of the respective financial year, no fee shall be payable. However, if it is filed after due date, for DIN status ‘Deactivated due to non-filing of DIR-3 KYC’ a fee of 500 rupees shall be payable from September 21st to October 05th 2018(Both days inclusive). From October 06th onwards a Fee of 5000 rupees becomes payable.

Conclusion

The Ministry of Corporate Affairs has come up with new web based KYC verification services for the existing director of all types of companies. The director who has submitted e-form DIR-3KYC already in relation to any previous financial year, submits web form DIR-3KYC-Web through the web services in relation to the subsequent financial year.

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