MCA new update -Know your clients (KYC) OF DIRECTOR

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Know your customer (alternatively, know your client or ‘KYC’) is the process of a business identifying and verifying the identity of its clients.

Central Government has extended the 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 and Qualification of Directors) Rules.

This form should be duly certified by a practicing professional (CA/CS/CMA). Filing of DIR-3 KYC would be mandatory for disqualified directors also.

There is 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 per form.

Every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status, would be mandatory required to file form DIR-3 KYC on or before 31st August, 2018. Otherwise LATE FEES PENALTY 5000 FROM 1 SEPTEMBER 2018 AND DIN WILL BE DEACTIVATED.

Important points to be noticed:-

  • Filing of DIR-3 KYC would be mandatory for Disqualified Directors also.
  • e-Form DIR – 3 KYC, need to file based on DIRECTOR IDENTIFICATION NUMBER (DIN), so even though, if any Director holding multiple Directorship in Company, then also they need to File e-Form DIR – 3 KYC, only once according to their DIN.

Check Points while Filling Form DIR-3-KYC:-

  • Unique Personal Mobile Number
  • Personal Email ID.
  • Duly Verified by OTP on Email ID and Mobile No.
  • The e-Form should be required to be certified by: Practicing Company Secretary, Practicing Chartered Accountant ,Practicing Cost Accountant

Documents Required:

  • DSC of Director duly Registered;
  • Self attested PAN card;
  • Self attested Aadhar card with updated Mobile number with UIDAI;
  • Self attested Electricity Bill, Mobile Bill, Bank statement of Director (latest 2 Months) of his/her present address;
  • Latest Passport size photo;
  • DIN declaration cum KYC.
  • Passport (mandatory for foreign national holding DIN.

Information required for filing DIR-3 KYC FORM:-

i) DIN

ii) Nationality

iii) Personal Mobile No.

iv) Personal Email ID

v) having a Valid Passport

vi) Residential status

DIR-3 KYC Will be deploy from 10.07.2018. it is applicable to all the Individuals holding DIN. First DIR3 KYC is needed to be filed by all Individuals who have been allotted DIN on or before March 31, 2018, need to file DIR-3 KYC on or before August 31, 2018. Thereafter, DIR-3 KYC needs to be filed every year by all Individuals on or before April 30th every year

After expiry of the due date by which the e-KYC form is to be filed, the MCA-21 system will mark all approved DINs (allotted on or before March 31, 2018) against which DIR-3 KYC forms have not been filed as ‘deactivated’ with reason as ‘non-filing of DIR-3 KYC’.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

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Legal Disclaimer:
This update has generic information that is given on the basis of "as is" and does not warranty it in any kind, nor does it imply, express or intend to aim a specific situation. The information given here might not be understood and shouldn't be considered as a particular opinion or advice. This write up shouldn't also be replaced for any service or professional advice and it also shouldn't be relied upon or used it acted as grounds for any action or decision that might affect your business or you. It is also distinctly clarified that this update has no intentions to be a form of advertisement or invitation or solicitation to generate any client-advisor relationship.

The information / articles & any relies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do noy constitute legal advice or legal opinions. All efforts and measures have been taken to assure the accuracy and correctness of the information presented in this update but cannot be guaranteed in any manner. We are not obligated to any responsibility or liability to any one for any damage or loss incurred by going with the information given in this update.

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