Form dir-5 for cancellation or surrender of din

Form DIR-5 for Cancellation or Surrender of DIN 

Brief Introduction

• Director Identification Number (DIN) is often surrendered thanks to different reasons, and therefore the DIN may be surrendered voluntarily for the purposes of cancellation or deactivation on certain conditions.
• what are the explanations for the surrender of DIN, or when can or not it’s surrendered? during this article, we shall answer such queries but before that, let’s have a short understanding of DIN.

Meaning

• DIN is that the Director identification number allotted to an individual by the Central Government who intends to appoints as a Director within the Company or a Partner in an LLP registered in India.
• Appliance for allotment of DIN shall be made in Form DIR-3/ Spice+ together with required fees and documents.
• The same DIN allotted to the Director shall not be allotted to the other person and such DIN is valid for a lifetime. it’s a unique 8-digit number written underneath the signature of the concerned director in returns, applications, forms, etc.
• Any change in details mentioned in Form DIR-3 or Spice+ shall be intimated through Form DIR-6 to the concerned authority together with supportive documents.
• Any individual shall not apply for an additional DIN when already possess the identical otherwise it shall be considered as non-compliance with Section 155 and such director or the corporate shall be prone to imprisonment or fine.

Utilization of DIN

• Director identification numbers may be accustomed to filing returns, applications, or any quiet information regarding the corporate before the Ministry of Corporate Affairs.
• The director must suit the essential requirement of the annual KYC within the due date of every year.

Reasons for Surrender of DIN

Some of the reasons for surrendering a DIN by a Director can be as follows –

• Multiple DIN– As per Section 153 of the companies Act, 2013 if any Director holds quite one DIN, then he should make an application to Regional Director in Form DIR-5 together with a notarized affidavit stating that such DIN has never been utilized in any quite a document required to be submitted to ROC. Apart from this, an application in respect of compounding shall be made in Form GNL-1.
• DIN obtained by fraud or wrongful manner- If a Director has obtained a DIN by furnishing false information or in a very wrongful manner, then DIN is required to be surrendered by the concerned person/director.
• Moreover, regulatory authorities can also deactivate such DIN, however, the same shall be made after issuing a show-cause notice to the said director.
• When Director declared as someone of unsound mind- As per Section 153 of the companies Act, 2013 if the competent court has declared anyone as of unsound mind, then DIN is required to be surrendered by filing Form DIR-5 together with the order of the court as an attachment.
• In case Director adjudicated as an insolvent- If the DIN holder adjudged as an insolvent, then he shall surrender his DIN by filing Form DIR-5 together with the order of the court.
• Death of the Director- just in case of death of the director, his relative shall file Form DIR-5 and shall attach death certificate thereto.

Ways to Surrender

There are two ways through which the Director can surrender DIN like on the order of the Central Government or Voluntarily by DIN holder.

A. By the order of Central Government–

Central Government has the power to order the surrender of DIN of a Director in cases such as:

• If the Director holds multiple DIN
• Where the Director obtains DIN by fraud or misrepresentation
• On Death of Director
• In case the Director has been declared insolvent
• Where the Director has been adjudged as an insolvent

B. Voluntarily by DIN holder–

• A DIN holder can also apply for surrender of his DIN, where the said director has not been appointed in any company or body corporate and such DIN stands unutilized in any document, being employed in communication to regulators.
• In such cases, the said director shall surrender their DIN voluntarily.

Process of DIN Surrender

A director can undertake surrendering of DIN by following the below steps –

• Login to the MCA website and application for surrender of DIN shall be made in Form DIR-5 together with Rs 1000/- as fees and attachments.
• Now, in order to fill DIR-5, the director shall provide the following information-
• Name of applicant
• DIN to be surrendered
• Number of DIN being surrendered
• DIN being retained
• Reason for such surrender

• Self-attested copy of applicant’s PAN.
• Copy of Self-attested Either Voter ID card number or Passport Number or driving license number of the applicant.
• Proof of permanent address along with contact details.
• Digital Signature of the concerned person
• DSC (Digital Signature) of the professional who shall be chartered accountant in practice, cost accountant in practice, or Company Secretary in whole-time practice.
• Order of the court, where the applicant has been declared insolvent or of unsound mind.
• Copy of Death Certificate within the case of death of Director.
• On verification of the said E-form DIR-5, the Central Government may deactivate the DIN, if found correct.

Wrapping Up- Cancellation or Surrender of DIN

• The procedure for the surrender of DIN is kind of easy but the DIN holder before making an application for surrender in Form DIR-5 shall ensure that while in possession of DIN such director has not been appointed in any company or body corporate.
• DIN which is being surrendered has not been employed in any document which is being communicated to a regulatory authority.
• the method of the surrender of DIN is kind of easy, transparent, and speedy with the introduction of E-form DIR-5.
• However, Directors are advised to require the help of qualified professionals and bear in mind the legal requirements so as to create timely and adequate compliances.

Major Role: Secretarial, Legal Compliances and FEMA Compliances, Banking-related documentation, etc. The work done is categorized below:

Secretarial & legal compliances done by us:

• Filing of replies for notices of strike off of Companies · Advisory services to Corporates- Legal opinions · Incorporation of Companies as per Companies Act, 2013
• Preparation of Directors’ Report, Management Discussion, and Analysis, Corporate Governance Report, · Convening of Board Meetings and EGM of Private and Public Limited Companies ·
• Filing of MGT-14 for various purposes.
• Preparation of various e – Forms CHG-1, CHG-4, INC 7, INC 1, INC 22, INC 24, MR1, GNL 2, DIR 12 and addendum forms & Annual returns filing of the Private and Public Limited Companies.
• Handling XBRL and non-XBRL Annual Filings, E-forms, and Secretarial Compliances with MCA portal · Prepare Minutes of Board Meetings, Annual General Meetings & Extra-Ordinary General Meetings. · Drafting of various documents, e.g. Notice, Resolutions, Board reports, Minutes, etc.
• Work relating to increasing in authorized capital, alteration in MOA, change of name, change of registered office.
• Apply & obtain DIN & DSC of class 2 and class 3.

Maintaining the statutory register & records under Companies, Act 2013

• Liasoning & dealing with Registrar of Companies, Revenue Department, DGFT, etc. · Preparation of share certificates & payment of stamp duty online on allotment of shares of the Company.
• Inspection of Company document by paying requisite fees in MCA -21.
• Allotment of Shares through Preferential cum Private Placement Basis and Right Issue.
• Preparation of various Board resolutions & authorization letters for various purposes like the execution of MOU, lease deed, sale deed, registration in sales tax, service tax, VAT, obtaining a license from PESO and various other industries
• Vetting of various agreements like Lease Agreements, Takeover agreement, Shareholder agreement, etc. · Formation & winding up of LLPs
• Compliance in relation to appointment and remuneration of KMP in accordance with Companies Act, 2013. ·
• Issue of Debentures · E-voting

GSTN : Required to implementation of Document Identification No (DIN) on all notices sent by GST Officers:

• Supreme Court passed final order in a Public Interest Litigation with directions to GST Council to issue advisories to all the states for implementation of Document Identification No (DIN) on the all notices sent by State GST Officers,
• Supreme Court also directed all the states to implement the above said Document Identification No (DIN) earliest possible Supreme Court order copy attached.