DIR-3 KYC Complete Guide

DIR 3 KYC: A Director’s KYC form

Know your client (on the other hand, know your customer or ‘KYC’) is the procedure of a business distinguishing and confirming the personality of its customers. The term is also used to refer to the bank and anti-money laundering regulations which govern these activities. Now, Central Government has extended the DIR-3 KYC for Directors as well. Just like Bank KYC, where governments want to know the Director and expect them to submit a yearly intimation about KYC and any changes, if any, in the details. It’s a form first time introduced by the Ministry of Corporate Affairs (MCA) wide its notification dated July 5, 2018, by issuing an amendment to Companies (Appointment of Directors) Rules.

What is DIR 3 KYC Form

DIR 3 KYC is recently presented frame by Ministry of Corporate Affairs whereby each Individual who is holding DIN is required to record his/her particulars in Form DIR-3 KYC consistently at the very latest April 30 consistently. For the present year, DIR-3 KYC is required to be recorded at the very latest August 31, 2018.

filing fees

There are no filing fees for DIR-3 KYC, however, if the form is filed after the due date, there is a penalty fee of Rs. 5,000 each form. Further, Central Government or Regional Director (Northern Region) are approved to deactivate DIN against which DIR-3 KYC isn’t documented.

Information Individual need to provide with eForm DIR-3 KYC

The draft form comes with Rules requires the following information:

1) Director Identification Number (DIN)

2) Complete Name of Individual

3) Father’s Name

4) Other general details like Nationality, Citizenship details. Gender, DoB.

5) Permanent Account Number

6) Voters ID

7) Passport (compulsory for foreign national holding DIN)

8) Driving License

9) Aadhar card (mandatory)

10) Personal Mobile and Personal Email

11) Residential address. also, it also requires, following Documents duly attested by Practising Professional:

i) Proof of Address;

ii) Residential Proof.

Other Information/Documents required:

1. Digital Signature of Individual filing the form (applicant).

2. Attestation of documents by Practising Professionals.

3. In the case of Foreign Nationals, documents need to verify by authority prescribe.

4. A declaration by the person applying, to be given by practicing professional. This is to enable professional to certify the form

From when DIR-3 KYC is applicable

eForm DIR-3 KYC is relied upon to be sent from July 10, 2018, and it is appropriate to every one of the Individuals holding DIN. In the first place, DIR3 KYC is should have been recorded by all Individuals who have been distributed DIN prior to March 31, 2018, need to document DIR-3 KYC at the latest August 31, 2018. From that point, DIR-3 KYC should be documented each year by all Individuals at the very latest April 30th consistently.

Can a Disqualified Director file DIR-3 KYC?

Yes. MCA made it very clear that DIR-3 KYC is compulsory for all the Directors even when the director is disqualified according to the provisions of Act. Hence, any individual holding valid DIN will need to file DIR-3 KYC.

Penalties and consequences upon non-filing

If an Individual files form after the due date, he/she will have to pay Rs. 5,000 perform as an additional filing fee. In addition to the above penalty, any wrong information, if any provided in the form, will also liable for penalty under Section 448 and 449 of the Companies Act, 2013.

Further, a deactivated DIN implies a man can’t act as a Director while at the same time his DIN is deactivated and any demonstration done by him/her will be invalid and which may pull in different punishments under Companies Act, 2013.

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By | 2018-10-18T07:52:46+00:00 July 31st, 2018|Licenses|Comments Off on DIR-3 KYC Complete Guide

About the Author:

Himanshu Jain is the founder of LegalRaasta – India's top portal for registration, trademark, return filing and loans. Himanshu is a CFA (US) & MBA (ISB). He has over 8+ years of corporate / consulting experience with top firms like McKinsey