Overview of Director Identification Number (DIN)

ROC Proposes a change in process of obtaining fresh DIN

MCA proposes a change in process of obtaining a fresh Director Identification Number

• Each individual who is a Director Identification number Director of a Company or a Partner of a limited liability partnership shall have a validated Director Identification Number (DIN) or a Designated Partner Identification Number.
• DIN is a unique number and is a required prerequisite for a Limited Liability Partnership to file such RoC E-Forms.
• Director Identification number is generally obtained during company registration or limited liability partnership registration for proposed company directors who do not have an existing Director Identification number or Designated Partner Identification Number (DPIN).

What’s the Director Identification Number (DIN)?

• DIN is the unique identification number of the Director allocated by the Central Govt to any person proposing to be the Director or the current Director of the Company.
• Director Identification Number (DIN) is unique to each person, which means that even if he is a director of Two or more corporations, he must receive only 1 DIN. And if he leaves the business and joins another company, the same DIN will operate in another corporation as well.
• It is an eight-digit unique identification number that is valid for a lifetime. The DIN records of the directors are saved on the Online data on MCA System.

Where is DIN used?

• DIN number (MCA) is always indicated under the signature of the Director, if a significant document, a letter of information, or a return is submitted under any statute.
• MCA has proposed to re-engineer the process of allotment of Director Identification Number (DIN) by allotting DIN to individuals only at the time of their appointment as Directors (If they do NOT possess a DIN) in companies.
• DIR-3 (Application for Director Identification Number) would be applicable for the allotment of DIN to individuals in respect of existing companies only and shall be filed by the existing company in which the proposed Director is to be appointed.
• Further, DINs to the proposed first Directors in respect of new companies would be mandatorily required to be applied for in SPICe forms (subject to a ceiling of 3 new DINs) only.
• It has also proposed to modify DIR-3 to permit allotment of up-to 2 new DINs (since SPICe provides for up to 3 new DINs) only in respect of ‘Producer Companies’. A separate notification would be issued for the same and stakeholders may plan accordingly.
• To facilitate corresponding changes in LLP e-forms due to deprecation of DIR-3, it has also proposed to temporarily suspend issuance of allotment of new DINs for Designated Partners/Partners of LLPs w.e.f 26th January 2018 till 31st March 2018.

How to Apply Fresh Director Identification Number(DIN)?

How to apply for allotment of Director Identification number?

Acquiring a DIN (Form DIR-3)

• Director Identification Number(DIN) can be acquired from an individual by filing Form DIR-3.
• The DIR-3 form must contain a photo of the applicant for DIN along with the description of the applicant and the accompanying documents:
  • In the case of Indian nationals, PAN income tax is a necessary condition for proof of identity.
  • Passport is a necessary prerequisite for proof of identification in the case of foreign nationals.
  • Address proofs such as passport, voting identification card, ration card, driving license, electricity bill, telephone bill or aadhaar are attached and should only be on behalf of the applicant.
  • If the case of an Indian claimant, the records do not exceed 2 months from the date of filing of the eForm.
  • In the case of a foreign applicant, the proof of address should not be more than one year from the date of filing of the eForm.
  • The DIN application must be digitally signed using the Class2 signature of the person applying for the DIN.
• In fact, the DIN application form must be digitally signed by the CA or ICWA or CS in full-time practice.
• The DIN form may also be digitally signed by the full-time Co secretary or the director of the organisation of which the applicant is to be named as director.
• However, in such situations, the annexed supporting documents should either be self-tested by the claimant or properly certified by the Public Notary or the Government Gazette Officer.

What about if DIN Allotment Application is Rejected?

• If the DIN Allotment application form has been refused due to the submission of any inaccurate or misleading details in the form. The central government gives a time limit of 15 days to be revised.
• Within this period of time, the individual must fill in and submit a new form with all the correct information.
• If he/she has not been able to do so, the application form are becoming invalid and the payment will be relinquished.

E-form DIR-3 KYC-Due date 30th September 2021

• Any person who has been allotted “Director Identification Number (DIN/DPIN)” on or before 31st March of each financial year and the status of such DIN is ‘Approved’, needs to file form DIR-3 KYC to update KYC details in the system on or before 30th September of each financial year.
• Every Director who has been allotted DIN on or before the end of the financial year, and whose DIN status is ‘Approved’, would be mandatorily required to file form DIR-3 KYC before 30th September of the immediately next financial year.
• After expiry of the respective due dates, the system will mark all non-compliant DINs against which DIR-3 KYC form has not been filed as ‘Deactivated due to non-filing of DIR-3 KYC’

What are the Reasons for deducting or canceling the DIN?

The government can cancellation the DIN for the reasons stated:

1. If a duplicate DIN is approved to the director
2. DIN has been received through fraudulent means
3. On the death of the individual concerned
4. The individual has been found unsound by the court.
5. Individual has been found to be insolvent

How to make revisions or changes to the ROC -DIR-3 form?

If changes have been made to the data provided in Form-DIR-3., the individual must notify the government by filling out Form-DIR-6.

• Download and fill in the form DIR 6
• Now search with the Digital Signature Certificate (DSC)
• Have it digitally signed by CA or CS or CMA.
• Submit it as per the instructions given

Other regulations relating to DIN:

• Within one month after obtaining the DIN, the Director must notify all of the organisations in which he serves as a director.
• After receiving Director Identification Number from the director of the company, the esteemed company must notify the director of the company’s Director Identification Number within 15 days.
• If the director or corporation fails to comply with these requirements for a period of time, it will be deemed a breach of the law and the person responsible will be liable to a penalty under the Company Act 2013.

Following below is a different kind of Forms related to DIN apart from ROC -Form SPICe

How to appointment of Foreign Director in Private Limited Company ?

Application of DIN for Foreign Citizens & Non-Resident Indian (NRI)

• A foreign nation, citizen, and non-resident Indian may be designated as director of an Indian Company, a Public, Private, Listed or Unlisted Company.
• The Director should be after eighteen years of age and must be a natural person. There are no constraints on citizenship or residence.
• Foreign Directors can be named as full-time directors (executive directors) and non-full-time directors (non-executive directors).
• Director Identification number for foreigners can be acquired by providing a copy of a notarized and apostilled passport for foreign citizens.
• The passport copy attached to the abroad national Director Identification number applicant must include the date of birth of the applicant. If the passport does not include the date of birth, additional evidence containing the date of birth must be sent, duly approved or certified.
• In addition, in the case of proofs in languages other than Hindi/English, the proofs should be translated in Hindi/English from a competent translator with particulars (name, signature, address) and seal. In the case of foreign citizens, a translation by the notary of the home country is also acceptable.

What is Process & Requirement to Appointment Non-Resident Indian(NRI) as Director?

1. CO Act 2013 makes it Compulsory that the below requirement should be complied to make the appointment of Non-Resident Indian as a director in Company Formation in India.

• • The person shall acquire to hold Director Identification number
  • An individual is not disqualified from becoming a Director Of Company
  • Need to give consent to act as director in ROC Form DIR 2

2. Process for the appointment of a foreign director of a private company, Apply to Digital Signature Certificates DSC: The very first step for becoming a director of a Private Company is to apply for the Digital Signature of the Director. The required filing at MCA DSC is compulsory. Set of documents needed for the DSC:

• • Notarized and apostilled copy of the visa,
  • Notarized and apostilled copy of the evidence of residence,
  • Passport picture scale (Recent)
  • Mobile & e-mail ID
  • Video-verification to be conducted by the applicant only.

3. Apply DIN to the Foreign Director: Director Identification Number is necessary to become a company director. The NRI Director must apply for DIN by DIR-3.

The person is eligible to acquire a digital signature certificate and to obtain Director Identification No by filling out the form DIR-3.Attachment of the DIR-3 form,

• • • Resident proof
    • Proof of identification
    • Photograph

key Note:

3. • Passport No is mandatory for non-residents. Foreign nation shall choose nationality as declared in the passport
   • Both records shall be apostles/notarized in the home country of a foreign national.
   • Pan is not mandatory for foreign citizens.
4. Meeting of the Board of Directors
5. Submission of form DIR-12 for appointment to the MCA portal: Form DIR-12 form is required to be submitted for the appointment of a foreign director to the Private Company with the necessary attachment. File ROC form DIR-12 within thirty days from the date of the passage of the special resolution in the EGM.

• Attachment of DIR-12
  • Identity Proof
  • Address Proof
  • Declaration By Appointee director in form DIR-8
  • Interest in other entity
  • DIR-2
  • Notice of EGM
  • Special Resolution
  • Minutes of the Meeting

Rajput Jain & Associates solely handle all legalities of Company Law compliance, right from getting the name of company, preparation of MOA/AOA, assisting in mobilization of financial and banking resources, till the commencement of operations and further. we handle the following matters :

• Formation & registration of company
• E- filing of documents with mca
• Compliance under companies act, 2013
• Formation of section 25/section 8 company (non profit making organization)
• Getting charge registered
• Liaison with registrar of companies & regional directors
• Getting director identification number (din)
• Maintenance of statutory records prescribed under companies act, 2013
• Winding up and liquidation of companies.
• Filling of annual returns and other documents to registrar of companies.

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