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
- 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:-
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’.
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