Documents Required, Form Filing, and Due Date for DIR-3 KYC
Term KYC stands for “Know Your Customer.” It is a procedure used by all banks, financial institutions, and other agencies to verify their clients’ identities by validating personal information such as their phone number, email address, PAN, and passport number ahead of time.
Ministry of Corporate Affairs has also begun the process of verifying the identity of DIN holders. With the use of E-form DIR-3 KYC, the details of Directors with Director Identification Numbers (DIN) are validated in this process.
This verification of personal information aids the Ministry in locating directors or designated partners in the event of non-compliance or fraud. Because of to the proposal by the MCA to update its register, all DIN directors shall submit the details of their KYC to eForm DIR-3 KYC annually.
Who is required to submit e-Form DIR-3 KYC?
According to a recent MCA notification, any director who received a DIN by or on March 31, 2018, and whose DIN is in authorized status must submit his KYC information to the MCA. This procedure is also required for directors who have been disqualified.
It is mandatory to file DIR-3 KYC for every director whose DIN is approved at or prior to financial year-end from 2019-20 onwards, before the 30th September of immediately following financial year. The manager shall be required to submit his/her DIR-2 KYC form.
For example, for the financial year 2020-21, directors with DIN or Director Partner Identification Number (DPIN) and directors assigned a DIN/DPIN by March 31, 2021, must file the eForm DIR-3 KYC by September 30, 2021.
Furthermore, according to the MCA amendment, any individual who has a DIN or DPIN as of March 31, 2021 must file Form DIR-3 KYC on or before October 5, 2021. DIN status is approved for submission of Form DIR-3 KYC.
If an individual wants to update his personal data such as his/her mobile number or e-mail ID, they must also update the same via DIR-3 KYC electronic form.
Objective of submitting Form DIR-3 KYC
For the purposes of seeking updated information from the directors and taking regulative measures against the Director if fraud or non-compliance occurred, DIR-3 KYC shall be required to be filed.
- Filing a such form assures that an individual’s DIN data is up to date with the Ministry of Corporate Affairs.
- To deactivate DINs that are not used by the managers or where available information is not updated.
- An individual holding the DIN on 31 March of each year shall submit the DIR-3 KYC e-form, and he or she must file the same for anyone interested in upgrading his or her personal details like a mobile or an E-Mail ID.
Who wants to sign the DIR-3 KYC eForm?
- As per the recent announcement by MCA, any director who has been assigned a DIN by or on 31 March 2020 and whose DIN is in approved status will have to send his KYC data to the MCA. In fact, this process is also compulsory for disqualified directors.
What are the requirements for filing the DIR-3 KYC eForm?
- Before filing an eForm, each Manager will have a separate personal mobile number and e-mail address. This number and e-mail address will be verified by an OTP (One-Time Password).
- The second check here is that the director has to use his own digital signature before filing this eForm.
- In addition, the third test to ensure that correct and relevant information is given would be that the eForm is accepted by a professional Chartered Accountant or Business Manager or Cost and Management Accountant.
Which are the conditions involved in filing the DIR-3 KYC eForm?
- Each Manager would need to have a separate personal mobile number and e-mail address before filing the eForm. This number and email address will be checked by an OTP (One-Time Password).
- Second test here will be that the director needs to use his own digital signature before filing this eForm.
- In fact, the third check to ensure that accurate and appropriate information is given should be that the eForm will be approved by a qualified Chartered Accountant or Company Secretary or Cost and Management Accountant.
DIR-3 KYC – Application for KYC of Directors
- DIR-3 KYC Filing Guidance While filing your DIR 3-KYC form, you would need the following documents: • Nationality and Citizenship records, such as gender and date of birth.
- Permanent Account Number (PAN) • Voters I d Card
- Passport (mandatory if a foreign national holds a DIN)
- Driving License
- Aadhaar Card
- Personal Phone
- Home address.
- Personal Email Address
- DIR-3 KYC Filing Guide When filing your DIR 3-KYC form, you will require the following documents: • Ethnicity and Citizenship information such as gender and date of birth.
- Scan-Copy of PAN
- Copy of Voters card
- A Copy of Passport (Compulsory for a foreign national owns a DIN)
- ScanCopy of Driving License
In addition to the above, please keep the following items ready:
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- The digital signature of the person filing of the application (applicant).
- Apostolic tradition of the documents described above by Practising Professionals such as CA, CS, or Cost Accountants. In the case of foreign citizens, the documents must be approved by the specified authority.
- A declaration must be made by the applicant properly approved by the practicing professionals.
Attachments to be made The individual must submit the following documents. Until downloading, making sure to get these forms certified.
Step by Step Procedure to file DIR-3 KYC form:
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Download form.
First and most important step is to obtain a copy of the DIR-3 KYC form from the MCA’s website.
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Fill in the DIN information.
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- Directors must complete the KYC DIN with ‘Approved’ status.
- Due to non-filing of the KYC Form Directors with disabled DIN may fill the form by paying the late filing fee after the prescribed due date.
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In the DIR-3 KYC Form, provide the requested details.
- Name and any relevant credentials.
The applicant must fill in his first & last name, as well as his father’s first & last name. There are only a few points to consider.
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- The director must enter his name as it appears on his PAN.
- Address entered in the form will be verified against the PAN database.
- Single alphabets, short forms, and acronyms are not allowed.
- A director must declare his citizenship.
- The nationality mentioned in his passport must be declared by directors of foreign nationality.
- Age Declaration.
- In the format DD/MM/YYYYY, the director has to enter his birth date(DOB). An age declaration is mandatory because anyone under the age of 18 is ineligible to file this application.
- A director’s permanent residential address must be entered and proof of permanent address must be attached. When the current residential address differs from the permanent residential address, the current residential address must be provided.
Please keep in mind that a foreign pin code can only be provided if the state selected is “NA.”
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PAN Validation.
Verification of the Permanent Account Number (PAN) is required. A director must first enter his PAN before clicking the ‘Verify income-tax PAN‘ button. The system then verifies the director’s information using the PAN card number.
Note: For successful authentication, the PAN provided in the form must match the PAN indicated in the DSC. When foreign nationals do not have a PAN, the name on the form must match the name on the DSC in order for authentication to be successful.
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Update Contact Details and Verify OTP
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- A director must update his contact information by entering his mobile number and e-mail address, which is then validated via an OTP.
- When a director enters these contact details, he must verify them with an OTP by clicking the ‘Generate OTP’ button after submitting these details. For each mobile number and email address, separate OTPs are sent.
- Only directors who are not Indian citizens are permitted to use country codes other than +91/91/0.
- It is important to note that an OTP is being successfully sent in one form for a maximum of 10 times/day to a mobile number & email address and twice in 30 minutes.
- Attachments must be attested.
An applicant must attest and upload the documents listed below:
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- Proof of Permanent address
- Other attachments needed under some conditions include
- Proof of present address
- Copy of Aadhaar Card
- Scan-Copy of Passport
Please keep in mind that any additional attachments must be digitally signed by the applicant.
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e-Form authentication
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- The e-Form must be authenticated, which means it must be digitally signed by a Chartered Accountant/Cost Accountant or a Company Secretary who is a member of the profession.
- Providing the details of the practicing professional, as well as their digital signature, is a significant process that cannot be avoided.
- The details of such a practicing professional, as well as his or her digital signature, must be provided. The above-mentioned documents are attached to this form and must be attested.
- After a thorough review, click the ‘Submit’
- Then After submitting an e-form, follow the steps below.
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SRN generation.
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- Once the e-Form DIR-3 KYC is successfully submitted, an SRN is generated and assigned to the user for future correspondence with the MCA.
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Email communication.
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- The recipient receives an email acknowledging that the form is received on his personal email identity.
- Send the form and SRN is generated and an acknowledgment receipt of the form is sent on his/her mail Id to the applicant.
What are the due date and consequences of the failure to submit form DIR-3 KYC for filing DIR-3 KYC?
- Any individual who has a DIN or a DPIN on or before 30 September of the next financial year, shall submit the DIR-3 KYC electronic form to the Central Government.
- Individual who has a DIN or DPIN as of March 31, 2021, must file Form DIR-3 KYC on or before October 5, 2021. The DIN status must be approved in order to file Form DIR-3 KYC.
- The Ministry would label a Director’s DIN as “Deactivated owing to non-filing of DIR-3 KYC” if he or she is unable or fails to file e-form DIR-3 KYC on the MCA site by the due date.
- If a director wants to reactivate his DIN, he must submit an e-form DIR-3 KYC along with an Rs. 5000 charge. If this form is filed within the specified time period, no fee is required to be paid.
Conclusion:
- The adoption of the e-form DIR-3 KYC was primarily motivated by this need. It might be argued that eliminating shell companies and dishonest directors is a positive corporate governance policy.
- This DIR 3 KYC’ form must be filed annually by directors, and the Director DSC must sign the document in order to file it. Attestation of the above-mentioned documents by a practising CA, CS, or CWA. In the event of foreign nationals, an attestation by a defined authorised person is needed.
- When directors are in default or a director wants to reactivate his DIN in the future, he can do so by filling the missing eForm DIR-3 KYC and paying a Rs 5,000 late charge. This charge is due by September 30th of the year in which the eForm DIR-3 is to be filed.
- In order to achieve the goal of avoid Director KYC MCA may imposing penalties or imprisonment or both, and MCA will temporarily deactivate the Director Identification Numbers of anyone who has not completed the KYC form, with the status ‘Deactivated owing to non-filing of DIR 3 KYC’, and will reinstate the DIN once the KYC is complete.
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