FORM DIR – 3 KYC

A company is a legal entity created by law, possessing a separate identity, perpetual succession, and limited liability. It is an association of individuals distinct from the people who establish it.

Unlike other business structures, a company’s ownership and management are separate. Shareholders become owners by contributing to the company’s capital, while a Board of Directors, elected by shareholders, is responsible for managing day-to-day operations.

The Companies Act, 2013 mandates various forms and regulations to maintain transparency and accountability, especially regarding company directors.

Introduction of DIR – 3 KYC

In 2018, the Ministry of Corporate Affairs (MCA) introduced DIR – 3 KYC to maintain accurate and updated records of individuals holding Director Identification Numbers (DINs). The aim was to deactivate DINs no longer in use and eliminate issues caused by outdated or fraudulent information submitted during DIN registration, making it easier for the government to address non-compliance or fraud cases.

Provisions of DIR – 3 KYC

1. Applicability:

   • Individuals holding a DIN for the first time must file their KYC through e-Form DIR – 3 KYC. Access to web-based services is not available for first-time filers.

2. Filing Deadline:

   • As per Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, any individual allotted a DIN as of 31st March must submit their KYC before 30th September of the following financial year.

3. Penalties for Non-Filing:

   • If the KYC is not submitted by the due date, the DIN will be marked as ‘Deactivated due to non-filing of DIR-3 KYC.’ It will remain deactivated until the KYC is filed with a penalty fee of ₹5000.

Required Details for DIR – 3 KYC Filing

• Name (as per PAN database)
• Father’s Name (as per PAN database)
• Date of Birth (as per PAN database)
• PAN Number (mandatory for Indian citizens)
• Personal Mobile Number
• Email Address
• Permanent/Present Address
• Aadhaar Number (mandatory for all DIN holders)

These details are uploaded to the DIN database to maintain accurate records. DIR – 3 KYC ensures better oversight of directors, safeguarding the interests of shareholders and stakeholders.