The Ministry of Corporate Affairs (MCA) is updating its registry and have mandated annual KYC for all directors. Non-filing of DIR-3 KYC will lead to a penalty of  Rs. 5000. The MCA has set the last date for filing the DIR-3 KYC to 31st August 2018. This penalty applies to all directors whose DIN number has an approved status on or before 31st March 2018.

For a comprehensive guide on DIR-3 KYC check out our article on Complete Guide on DIR-3 KYC.

MCA notification dated 6th July 2018.

This penalty comes as a result of the notification from MCA to the “Companies (Registration Offices and Fees) Third Amendment Rules, 2018″ and has been imposed under the rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014. which have been in effect from the 10th of July 2018.

The rule has been listed down for your reference.

Rule 12A:

Every individual who has been allotted a Director Identification Number (DIN) as on 31st March of a financial year as per these rules shall submit e-form DIR-3-KYC to the Central Government on or before 30th April of immediate next financial year. (31st August in case of FY 2017-18) Provided that every individual who has already been allotted a Director Identification Number (DIN) as at 31st March 2018, shall submit e-form DIR-3 KYC on or before 31st August 2018.”

Non-filing of DIR-3 KYC leads to deactivation of DIN

Non-filing of DIR-3 KYC will “cost” directors heavily

Document Checklist

  • Valid e-mail and mobile number for OTP verification
  • Digital Signature Certificate (DSC)
  • Self-attested PAN card
  • Self-attested Aadhar card
  • Self Attested Passport, Driving License, Electricity, Bank Statement (No older than 2 months).

Things to consider to avoid Non-filing of DIR-3 KYC and incurring penalty.

  1. Disqualified directors have to submit DIR-3 KYC mandatorily.
  2. In case of Indian nationals, Income-tax PAN number is mandatory even if there are no changes in the income tax PAN. Director details have to be in accordance with the income-tax PAN.
    In case details are incorrect, directors should correct these details in income-tax PAN first.
  3. In case a director fails to file the DIR-3 KYC e-form their Director Identification Number (DIN) will be marked as ‘deactivated’ with the reason ‘Non-filing of DIR-3 KYC’
  4. MCA notifies ‘Nil fee’ and ‘Delayed fee of Rs. 5,000’ for filing e-form DIR-3 KYC
  5. Mandatory Information required in DIR-3 is – Unique Personal Mobile Number, Personal Email ID, One-time Password (OTP) on Email ID and OTP on Mobile No.
  6. The new rule 12A specifies the procedure for re-activation of deactivated DINs.

Here at LegalRaasta, we understand keeping up-to-date with all compliance requirements can be a challenging process for directors, especially while juggling many responsibilities at once.

Our comprehensive legal solutions help you meet deadlines and file your legal requirements for you, so you have lesser things to worry about! Head on over to DIR-3 KYC registration and let us help you through the processing of your director’s registration.

Shoot us an e-mail at contact@legalraasta.com or give us a ring at +91-8750008585 to avail from our wide range of legal services.