Know All about DIR 3 KYC - Verification of KYC for Directors

All about DIR 3 KYC

Introduction

  1. DIR 3 KYC is a Form which every individual holding DIN (Director Identification Number) has to file with Ministry of Corporate Affairs (MCA). Every individual who has been allotted DIN as on 31st March 2018, and the status of such DIN is approved, shall submit e-Form DIR 3 KYC to Central Government on or before 5th October 2018.
  2. For Financial Year 19-20 onwards, every Director who has been allotted DIN on or before the end of the financial year, and whose DIN status is ‘Approved’, would be mandatorily required to file form DIR-3 KYC before 30th September of the immediately next financial year.
  3. KYC stands for Know Your Customer

Purpose of DIR 3 KYC

In certain instances, the Government found that either details furnished at the time of applying DIN were not true or the updated particulars of an individual acting as a Director is not available with the Government. In such a situation, it becomes difficult for the Government to enforce regulatory actions such persons in case of non-compliance or fraud. 
Therefore the objective behind KYC of individuals holding DIN is two-fold , firstly to ensure updated data is available in the records of the Government in respect of every person who is holding DIN and secondly to deactivate DIN’s , which are not being used and where updated information is not available.

Who should file DIR 3 KYC

  1. All the directors, Partners/ Designated Partners of a Limited Liability Partnership is required to file DIR 3 KYC.
  2. Even a disqualified director is required to file DIR 3 KYC

How to file DIR 3 KYC

E-Form DIR 3 KYC

  1. E-form DIR-3 KYC is to be filed by an individual who holds DIN and is filing his KYC details for the first time or
  2. by the DIN holder who has already filed his KYC once in e-form DIR-3 KYC but wants to update the details.

Web Service DIR 3 KYC

  1. Web based e-form DIR-3 KYC shall be used by the DIN holder who has submitted DIR-3 KYC e-form in the previous financial year and no update is required in his details.
  2. No fee is payable up to the due date of each financial year. After the due date, a fee of Rs.5000 shall be payable

Annual Compliance of KYC

If the DIN holder does not file his annual KYC within the due date of each financial year, such DIN shall be marked as ‘Deactivated due to non-filing of DIR-3 KYC’ and shall remain in such Deactivated status until KYC is done with a fee of Rs. 5,000.
If the KYC is done in one financial year, it need not be done again in the same Financial Year again.
Example: DIN issued on 30 Jun 2017. Due date for first KYC to be filed in e-Form DIR-3 KYC was 5th October 2018. If the DIN holder does not file the form within the due date, DIN is marked as ‘Deactivated due to non-filing of DIR-3 KYC’. Now in case the form DIR-3 KYC is filed with a fee of Rs. 5,000 before 31st March 2018, KYC will be considered to have been done for the FY 17-18.

Details required for DIR 3 KYC

  1. Name (as per PAN)
  2. Father’s Name (as per PAN)
  3. Date of Birth (as per PAN)
  4. Details of Nationality
  5. PAN Number (mandatory for citizens of India)
  6. Personal Mobile number
  7. Personal Email Address
  8. Permanent address
Any one from the following: –
a) Passport,
b) Aadhar Card,
c) Voter’s identity Card,
d) Driving license,
e) Ration Card,
f) Bank Statement,
g) Electricity Bill,
h) Telephone Bill,
i) Utility Bills etc.
Note: Above documents to be Self attested copy, not older than 2 month, and it is 1 year for Foreign National in case of point (f) to (i))
 
Present address
Any one from the following: –
j) Bank Statement
k) Electricity Bill
l) Mobile Bill
m) Telephone Bill
Note: Above documents to be Self attested copy, not older than 2 months, and it is one year for Foreign National
Further, Aadhaar is mandatory, if it is assigned. 
If not, then Voter ID or Passport or Driving License shall be attached. 
Accordingly, copy of any one of the above selected information is to be attached.

Steps for filing Web Service DIR 3 KYC

  1.         Log into MCA website
  2. Go to MCA services. Select DIN services
  3. Mention the DIN number
  4. Mobile number and Email ID shall appear
  5. Click - Send OTP
  6. OTP will be generated
  7. Enter the OTP and click submit
  8. Challan along with SRN shall be generated

Signatories in DIR 3 KYC

The DIN holder and a professional (CA/CS/CMA) certifying the form are the two signatories in form DIR-3 KYC.

Changes to be updated

In case an individual desire to update his personal mobile number or the e-mail address, he shall update the same by submitting Form DIR-3 KYC only.
In case an individual desire to update his permanent or present residential address, Passport Number, Nationality etc., he shall update the same by submitting Form DIR-6 and on approval of Form DIR-6, verify the details through form DIR 3 – KYC – WEB.

Consequences of Not Complying KYC

  1. On non-filing of DIR-3 KYC or verification of details on DIR-3 KYC Web, the DIN of the concerned individual will be deactivated.
  2. A deactivated DIN only restricts the Director from making e-compliances like filing of forms etc., i.e. wherever data is captured / verified online through DIN details.
  3. His actions as Director shall not be held invalid.
  4. He can be appointed/ re – appointed/resigned in a Company, however the compliance related to return of such appointment/resignation to be filed with the ROC (Form DIR-12) shall not be possible unless the DIN is re-activated by filing of DIR-3 KYC / DIR-3 KYC web.

    • Recent Articles

    • Basic Concepts of Income Tax in India

      Introduction Taxes are considered to be the ‘cost of living in a society’. Taxes are levied by the Governments to meet the common welfare expenditure of the society. The reason for levy of taxes of that they constitute the basic source of revenue to ...

    • Theory Base of Accounting

      The theory base of accounting consists of principles, concepts, rules, and guidelines that have been developed over time in order to bring uniformity and consistency to the accounting process as well as to increase the utility of accounting ...

    • All about DIR 3 KYC

      Introduction DIR 3 KYC is a Form which every individual holding DIN (Director Identification Number) has to file with Ministry of Corporate Affairs (MCA). Every individual who has been allotted DIN as on 31st March 2018, and the status of such DIN is ...

    • How does Digital Signature Work ?

      A Digital Signature Certificate explicitly associates the identity of an individual/device with a pair of electronic keys - public and private keys - and this association is endorsed by the CA. The certificate contains information about a user's ...

    • Usage of Digital Signature Certificate

      You can use Digital Signature Certificates for the following: For sending and receiving digitally signed and encrypted emails. For carrying out secure web-based transactions, or to identify other participants of web-based transactions. In eTendering, ...