The Ministry of Corporate Affairs (MCA) has recently notified to conduct the KYC (Know Your Customer) for all directors of all companies through a new e-Form via DIR-3 KYC by August 31.
According to MCA, it would be mandatory for every director who has been allotted DIN on or before 31st March, 2018 and who’s DIN is in ‘approved’ status required to file the form DIR-3 KYC on or before 31st August, 2018. And it is compulsory for Disqualified Directors whom they need to file in DIR-3 KYC form also.
However, MCA has made a favour for directors and extended the deadline of filing the e-Form DIR-3 KYC for Directors from 31st August 2018 to 15th September 2018 and it is informed that all directors should file their KYC with the concerned form before the due date.
MCA Notification on Directors KYC Updation
As stated by the MCA, the Directors KYC notification with respect to updating registry is as follows:
As part of updating its registry, MCA would be conducting KYC of all Directors of all companies annually through a new eform viz. DIR-3 KYC to be notified and deployed shortly.
Accordingly, every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status, would be mandatorily required to file form DIR-3 KYC on or before 31st August,2018.
While filing the form, the Unique Personal Mobile Number and Personal Email ID would have to be mandatorily indicated and would be duly verified by One Time Password (OTP).
The form should be filed by every Director using his own DSC and should be duly certified by a practicing professional (CA/CS/CMA). Filing of DIR-3 KYC would be mandatory for Disqualified Directors also.
After expiry of the due date by which the KYC form is to be filed, the MCA21 system will mark all approved DINs (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason as ‘Non-filing of DIR-3 KYC’.
After the due date filing of DIR-3 KYC in respect of such deactivated DINs shall be allowed upon payment of a specified fee only, without prejudice to any other action that may be taken.
DIR-3 KYC notified in Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2018. These rules are called the Appointment and Qualification of Directors which need to be submitted through e-form DIR-3 KYC to the Central Government.
While filing DIR-3 KYC form, all stakeholders are requested to use PAN based DSC in case of Indian Nationals i.e. DSC should contain the PAN as specified in the form.
In respect of foreign nationals, applicant’s name in DSC would be matched with his/ her name entered while filing the e-Form DIR-3 KYC.
Incase the PAN/ Name doesn’t match with PAN/ Name entered in the form, they would be required to get a DSC with PAN/ Name as specified in the form.
From this notification it is clear that:
Who has to File DIR-3 KYC?
Directors of all companies who have got DIN on or before 31st March, 2018 and whose DIN status is approved are required to file e-Form DIR-3 KYC.
When is the Due Date of DIR-3 KYC?
Due date for filing of e-form DIR-3 KYC is 31st August, 2018
Mandatory Information Required for DIR-3 KYC
Certification Required to File DIR-3 KYC
Is Disqualified Directors Needed to File in DIR-3 KYC Form?
Yes, it is mandatory to file DIR-3 KYC by Disqualified Directors.
Result of Directors Who Fails to File DIR-3 KYC Form
The MCA system will mark the approved DINs as Deactivated due to ‘Non-filing of DIR-3 KYC’.
Consequences of Filing DIR-3 KYC After Due Date
The deactivated DINs shall be allowed upon a payment of specified fee only.
Some Frequenlty Asked Questions (FAQs) on DIR-3 KYC
1. Who is required to file DIR-3 KYC form?
Every Director who has been allotted Director Identification Number or Designated Partner Identification Number (DIN/ DPIN) on or before 31st March, 2018 and the status of such DIN is ‘approved’; they need to file e-form DIR-3 KYC to update KYC details in the system as a Director on or before 31st August 2018.
For Financial Year (FY) 2019-20 onwards – Every Director who has been allotted DIN/ DPIN on or before the end of the financial year, mandatory to file e-form DIR-3 KYC before 30th April of the immediate next financial year.
After deadline of respective due date, the system will mark all non-complaint DINs as ‘Deactivated’ due to missing the filing of DIR-3 KYC form on time.
2. Which details are required to be filed in the form?
Name, Father’s Name, Date of Birth (DOB) [all are as per the PAN information], PAN Number (mandatory for citizen of India), Personal Mobile number, Email ID and Permanent/ Present Address.
In addition to this, the Directors are required to provide their AADHAAR, if not then Voter ID or Passport or Driving License.
3. Is it mandatory to enter personal mobile number and email ID in DIR-3 KYC form?
Yes, it is mandatory to enter your personal unique mobile number and personal unique email ID in the form DIR-3 KYC and it has to be verified by OTP and email process. This mobile number and email ID must not be linked to other person’s DIN holder.
4. How does the OTP works in DIR-3 KYC Form?
Send OTP button will be enabled only after the successful pre-scrutiny of the form. After the successful of pre-scrutiny, the applicant/ user has to click on ‘Send OTP’ button.
Please note that, once OTP is successfully sent to the valid and active mobile number and email ID, the ‘Send OTP’ button gets disabled automatically and the OTP is valid for 15 minutes.
5. Who are the signatories in DIR-3 KYC form?
The DIN holder and the certifying professional (CA/ CS/ CMA) are the two signatories in the form DIR-3 KYC.
6. If I am a disqualified director, am I required to file the form DIR-3 KYC?
Yes, disqualified directors are required to file the form DIR-3 KYC.
7. What is the late fee for filing of form DIR-3 KYC?
There is no fee for filing of DIR-3 KYC Form within the due date with respective to financial year. However, if you filed after the due date for DIN status ‘Deactivate’; a fee of Rs. 5000 shall be payable.
8. Can a non-resident director is allowed to provide Indian mobile number?
No, a non-resident foreign director is not allowed to provide Indian mobile number, but he shall be allowed only to enter his/her foreign address and foreign mobile number.
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