How To Apply DIR 3 KYC For Directors?

In the complex corporate governance landscape, maintaining compliance with regulatory requirements is essential for the smooth operation of any business. For directors in India, one critical compliance mandate is the DIR-3 KYC process, overseen by the Ministry of Corporate Affairs (MCA). This procedure ensures that directors maintain an active Director Identification Number (DIN), a unique identifier necessary for anyone wishing to hold or currently hold a directorship in a company. Initially a one-time requirement, the process now demands that directors submit their Know Your Customer (KYC) details annually to update their registration and affirm their operational legitimacy. In this article, we will look into How To Apply DIR-3 KYC For Directors. Experts at IndiaFilings are ready to assist you with the DIR-3 KYC application process. [shortcode_39]

DIR-3 KYC

Managing a startup involves navigating numerous legal procedures and filing various forms with the Ministry of Corporate Affairs (MCA). It’s crucial to stay on top of these requirements to ensure smooth operations. One such essential legal requirement is obtaining a Director Identification Number (DIN). This unique number is assigned to anyone who wishes to become a director or is already a director of a company. Previously, completing the DIR-3 application was enough to secure a DIN for a company’s directors in the digital age. However, with recent changes by the Ministry of Corporate Affairs, all directors with a DIN must now annually submit their KYC details using the DIR KYC form to keep their registration current.

Who Needs to File the KYC Form?

Following the latest amendments by the Ministry of Corporate Affairs, it is mandatory for any director or individual who was allotted a Director Identification Number (DIN) by the 31st March 2018 to submit their KYC details to the MCA. This requirement also applies to directors whose applications have been disqualified, making the submission of KYC details essential for all affected individuals.

Key Verification Steps for Filing the KYC DIR Form

To ensure the accuracy and authenticity of the KYC DIR form, directors must adhere to several key checkpoints:

Contact Verification: Every director is required to provide their email address and mobile number, which will be verified through a One-Time Password (OTP) to ensure the contact details are correct and active.
Digital Signature: The form must be digitally signed by the director themselves. This serves as a personal verification and confirms that the information provided is endorsed by the director.
Professional Certification: The final checkpoint involves certifying the form by a qualified professional, either a Chartered Accountant or a Company Secretary. This step is crucial for verifying the accuracy of the information provided on the form.

Penalties for Late Filing of KYC DIR Form

If a director fails to meet the filing deadline for the KYC DIR form, a penalty of 5,000 rupees is imposed. Additionally, should a director need to reactivate their application after missing the due date, this can be accomplished by following the same process and paying the specified penalty.

Required Documents for Filing the KYC Form

When filling out the KYC form, directors must provide a comprehensive set of documents to verify their identity and ensure compliance. The necessary documents include:

Nationality and Citizenship Details: Information such as date of birth and gender.
- Permanent Account Number (PAN).
- Voter Identification Card.
- Passport.
- Driving License.
Aadhaar Card: For Indian nationals.
Contact Information: Personal mobile number and email address.
Residential Address: Permanent residential address.

Additionally, the following documents are also required:

Digital Signature of the Applicant: To validate the authenticity of the filing.
Declaration by the Applicant: A formal statement confirming the accuracy of the information provided.

Attestation of Documents: Necessary documents must be attested by practising professionals such as Chartered Accountants (CA) or Company Secretaries (CS).

Fees for Filing the DIR-3 KYC Form

Filing the DIR-3 KYC form is free of charge if completed before the specified due date. However, if the form is filed after the due date, a penalty of INR 5,000 must be paid.

How to Apply for DIR 3 KYC Online for Directors

The process of applying for DIR 3 KYC online for directors is detailed below:

Step 1: Download the Form

Start by downloading the DIR 3 KYC form from the Ministry of Corporate Affairs (MCA) website.

Step 2: Submission of the Form

If you have an active DIN, you can proceed to fill out the form.
For deactivated accounts, you must first pay the necessary penalty before filling out the form.

Step 3: Preparation for Filling the Form

Gather Required Documents: Before filling out the form, collect all necessary documents such as PAN, Aadhaar card, passport, proof of residence, and any other required identification or verification documents. Filling Out the Form

Name and Credentials: Enter your name and other credentials as they appear on your PAN card. The address you provide will be verified against the PAN database.
Nationality: You must declare your nationality. Non-resident Indian (NRI) directors must also provide their passport details.
Age: You must be at least 18 years old to file this form.
Residential Addresses: Enter your permanent residential address. If your current address is different, you must provide that as well.
PAN Verification: Input your PAN number and click on the ‘Verify Income-Tax PAN’ button to validate your PAN.
Contact Information: Enter your personal mobile number and email address. These will be verified through an OTP to ensure they are active.

The form must be digitally signed using a Digital Signature Certificate (DSC) by the director. Attaching Documents: Attach the following documents before submission:

Proof of Permanent Address
Aadhaar Card Copy
Passport Copy (if applicable)
Proof of Current Address

Step 4: Verify PAN

Input PAN: Enter your Permanent Account Number (PAN).
PAN Verification: Click the 'Verify Income-Tax PAN' button to ensure the PAN details match the database.

Step 3: Certification of the Form

Have the form certified by a practising Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant. They must also affix their digital signature.

Step 4: Submit the Form

Final Review: Double-check all entries and documents for accuracy.
Submit Online: Upload the completed form along with all attachments on the MCA portal.

Step 5: Confirmation and Receipt

SRN Generation: Upon successful submission of DIR 3 KYC online, an SRN (Service Request Number) will be generated.
Email Confirmation: You will receive a confirmation email on the registered email address with details of the submission and the next steps, if any.

Following these detailed steps will help ensure that your DIR-3 KYC form is filed correctly and complies with the requirements set by the Ministry of Corporate Affairs. By following these steps, you can successfully file the DIR-3 KYC form, keeping your directorship compliant with MCA regulations.

Process After Submitting the DIR-3 KYC Form

SRN Generation: Once the DIR-3 KYC form is fully and correctly submitted, a Service Request Number (SRN) is generated. This number is crucial as it serves as a reference for any future communications with the Ministry of Corporate Affairs (MCA) regarding this specific filing.
Email Confirmation and Receipt: Shortly after submission, an email will be sent to the director's registered email address. This email will include:
Approval Notification: Confirmation that the DIR-3 KYC form has been approved.
Receipt of Submission: An attached receipt which documents the successful filing of the form. This receipt should be saved for record-keeping and any future requirements.

Keep the SRN and the receipt in a secure location. You may need to refer to them for any follow-up actions with the MCA or in case of queries about your filing status.

Conclusion

Navigating regulatory requirements is essential for directors in India, and one crucial aspect is the DIR-3 KYC process managed by the Ministry of Corporate Affairs (MCA). This procedure ensures directors maintain an active Director Identification Number (DIN), which is necessary for their roles. Initially a one-time task, directors must now submit KYC details annually through the DIR-3 KYC form to stay compliant. This article provides insights into applying DIR 3 KYC for directors, empowering them to fulfil their regulatory obligations effectively. Contact IndiaFilings today to get expert assistance with your DIR-3 KYC application and streamline your compliance process. [shortcode_39]