Company Registration

What is Director Identification Number in Company Registration?

Director Identification Number is an 8-digit, permanently valid, unique identifying number.  Anyone wishing to register as a Private Limited Company, Limited Company, or One Person Company (OPC) in India and serve on the board of directors must have a Director Identification Number. Shareholders of a company are not required to have a DIN number. Moreover, a Limited Liability Partnership (LLP) can be registered using a DIN number, and a company can be registered using an existing DPIN (Designated Partner Identification Number).

What is Director Identification Number?

In an application in form DIR-3 pursuant to sections 153 and 154 of the Companies Act of 2013^[1], each person appointed as a director of a business is given a unique identification number (DIN). When a new company is formed, an application for the allocation of a DIN must be made exclusively through the SPICe e-form.

Information on the directors is kept up to date in a database by Director Identification Number. As a DIN is unique to a person, even if he serves as a director for two or more firms, he only needs to obtain one DIN. Also, if he leaves one firm and joins another, the same DIN will continue to work there as well.

Who has the authority to assign a DIN (Director Identification Number)?

Anyone who wants to join an existing company’s board of directors must submit Form DIR-3, which is handled by the central government’s Office of Regional Director (Northern Region), Ministry of Corporate Affairs. The individual who is appointed as a director will also receive a DIN from the approving authority upon filing form SPICe (INC-32) (Central Registration Centre).

Certificate for a digital signature

Prior to requesting a DIN number, a Digital Signature Certificate (DSC) in the applicant’s name is required. Digital signature certificates are issued as USB tokens and have a one- or two-year validity. The applicant must submit a signed DSC application together with identification and residency confirmation in order to apply for and receive DSC.

A copy of the submitted identification and address evidence must be self-attested. The self-attested copy of an identification or address proof submitted by a foreign citizen or non-resident Indian (NRI) must be notarised or validated by the Indian Embassy in the country.

The procedure for obtaining DIN (Director Identification Number):

At the time of incorporation, anybody who wants to serve as a director for a new company must apply for the allocation of a Director Identification Number exclusively through the SPICe e-form. Anyone who wants to join an existing company as a director must submit an application in eForm DIR-3 for the assignment of a DIN and complete the steps below:

1. Attach the required photo and scanned copies of the supporting documents, such as the attested proof of identification and the attested evidence of residency.
2. The DIN cell does not require the submission of physical documents.
3. The applicant must fill out Form DIR-3, which must be digitally validated by a company secretary who works full-time for the business or by the managing director, director, CEO, or CFO of an existing company where the applicant intended to be appointed as a director.
4. After uploading, pay the e-Form DIR-3 filing charge. The only electronic methods of payment for the fees are accepted (Net Banking, Credit Card, Debit Card, Pay Later, and NeFT). Only after the payment of E-form DIR-3 will the application be processed.
5. If the information on the e-Form has not been identified as a potential duplicate, an approved DIN will be generated after successful payment. In the event that the information on the e-form is discovered to be a possible duplicate, a provisional DIN must be generated. The receipt will contain an appropriate informational note for the user in this regard.
6. Verification of the e-Form: If any of the information on the e-Form DIR-3 is discovered to be a possible duplicate, the information is forwarded to the DIN cell for back-office processing. The provisional DIN becomes the approved DIN and is then usable after the form has been accepted.

Procedures for change in particulars of existing DIN

It is necessary to download and complete e-Form DIR-6 in order to make changes to an existing DIN Director. This method is the same as that for e-Form DIR-3 in terms of uploading the completed form. On verification of the proof included with the application form, the desired alteration is taken into consideration. If it is for the applicant’s name change, Form DIR-6 and gazette notification are a must. Women who are married and have identification bearing their maiden name may submit the marriage certificate with their application.

Required Documents For Director Identification Number

Depending on the e-form your organisation is filing, different papers can be needed. The files required for each form are listed below:

The SPICe+ Form:

• Identity proof copies
• Copies of residential address
• The voter identification card, passport, driving licence, and a unique identification number (UIN) as address evidence are all acceptable forms of identification.

DIR-3 Form:

• Applicant’s Photograph 
• If the applicant is an Indian national, their PAN card is. A copy of PAN that has been attested serves as proof of identification, name, father’s name, and birthdate. So, an authenticated copy of your PAN is required for your identity, name, father’s name, and birthdate.
• For foreign nationals, an attested copy of the passport is required. Proof of the father’s name is not required.
• Authenticated residential address proof that should not be older than two months.
• Crucial information regarding DIN documents.
• Applicants may submit only current, non-expired documents.
• The voter identification card, passport, driver’s licence, and unique identification number (UIN) are all acceptable forms of address verification.
• Bank statements and utility bills like mobile, electricity bills etc., in the applicant’s name alone that are no more than two months old, are acceptable forms of identification.

Grounds for rejection of Director Identification Number (DIN) application

Only after careful examination of the supporting documentation is a provisional DIN approved. Common errors made by applicants that result in the rejection of the DIN application include the following.

Absence of supporting documentation

• The applicant fails to provide proof of identity.
• The applicant has not provided proof of his father’s name.
• The applicant fails to produce documentation supporting his date of birth.
• The applicant has not provided proof of residence address.
• For overseas nationals, a copy of the passport is not submitted

Invalid Application/supporting Documents

• The supporting documents are no longer valid or expired.
• A government agency has not issued the submitted proof of identity.
• The application or supporting documentation contains handwritten entries.
• The submitted application does not have an image attached.
• The submitted application is a duplicate Director Identification Number application, and the applicant has previously had one application pending or accepted.
• The signatures are not affixed in the designated location.
• The name on the applicant’s application does not match the name on the supporting documentation.
• The father’s name listed on the application form for the applicant does not match the father’s name listed on the documentation that is submitted.
• The applicant’s date of birth (DD/MM/YY) on the application form does not match the applicant’s date of birth on the supporting documentation.
• The application’s address information does not match the information on the supporting documents that are enclosed.
• The gender on Form DIR-3 is not appropriately entered.
• The identity proof enclosed does not match the identification number given in the application.
• If the documents you’ve enclosed aren’t self-attested.

Reason and Procedure for surrendering or Cancelling the DIN

The following are the grounds for DIN cancellation by the central government:

• If the director has received a duplicate DIN.
• It was obtained illegally.
• Upon the passing of the relevant individual.
• The court has determined that the person is of unsound mind.
• The individual has been declared insolvent.

The DIN may also be returned on Form DIR-5 by the director. He must sign the form and state that he has never been appointed as a director of the firm and that the provided DIN has never been used to file any document with a government agency. The central government will deactivate the DIN after reviewing the electronic records.

It should be noted that, in accordance with the Companies Act 2013, once a person is appointed as a director in a business, he cannot later relinquish his DIN. His DIN will continue to exist even if he leaves that firm or any other company as a director.

Conclusion

From the above understanding, there are several forms and documents that need to be submitted to receive DIN. The entire process would get delayed or abandoned if any minor inconsistencies occurred. Anyone who is not disqualified in accordance with the Companies Act’s provisions may apply for a DIN. It is recommended to seek the advice of an experienced professional who has knowledge in these areas and can assist you with all aspects of the process in order to guarantee that it is done successfully and without disruption.

Also Read:
How to Obtain DIN (Director Identification Number)
Change in Particulars of Director Identification Number (DIN)