DIR-3 KYC : A Mandatory Compliance for All Directors
In the Era of corporate compliance, the Ministry of Corporate Affairs (MCA) has tightened grips over the transparency and accountability. A key initiative has been made to make DIR-3 KYC process mandatory for individuals holding Director Identification Numbers (DINs). This process makes the MCA updated with verified details of directors, helping maintain transparency and prevent fraud.
Director identification number (DIN) is a unique identification number given to a person wanting to be a director or an existing director of a company. Initially, application by any person who wants to be a director in one or more companies in e-Form DIR-3, as a one-time process was sufficient to obtain DIN. Now, all directors with a DIN will have to submit their KYC details annually in e-Form DIR-3 KYC
1. What is DIR-3 KYC ?
1.1 Meaning
DIR-3 KYC is a form prescribed under Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, which mandates every individual who has been allotted a Director Identification Number (DIN) to annually update their KYC details with the MCA. This filing ensures that the MCA database remains updated with the latest director information. It requires directors to submit their Know Your Customer (KYC) details, including:
- Personal details (Name, Father’s Name, Date of Birth)
- Contact details (Mobile, Email, Address)
- PAN & Aadhaar details
- Digital Signature (DSC) verification
1.2 Who Needs to File DIR-3 KYC ?
- DIR-3 KYC is Mandatory for the following individuals:
- Every person who has been allotted a DIN on or before 31st March of the financial year.
- Even if the individual is not currently a director in any company.
- DIR-3 KYC is applicable even for disqualified directors
- However, Directors who have already filed DIR-3 KYC in a financial year need not file again unless there are changes
- The following individuals must file DIR-3 KYC:
- All Directors of Indian companies (including dormant companies)
- Foreign Directors (if they hold a DIN/DPIN)
- Designated Partners (DPs) of LLPs
1.3 Purpose
- To ensure updated personal details of directors.
- To eliminate shell companies and inactive directors.
- To enhance corporate governance and transparency.
2. Legal Framework Governing DIR-3 KYC
2.1 Statutory Provision
Governed by Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014
2.2 Applicable Forms
- DIR-3 KYC (For first-time filing or changes in personal details)
- DIR-3 KYC Web (For subsequent annual filing where no changes exist)
3. Due Date and Frequency of Filing
3.1 Due Date
The form must be filed annually on or before 30th September of the immediately next financial year. For example, If DIN was allotted on or before 31 March 2025, the DIR-3 KYC must be filed by 30 September 2025.
3.2 One-time and Annual Filing
- First-time filers must use DIR-3 KYC (e-form).
- Subsequent filings can be made through DIR-3 KYC Web, provided there are no changes in KYC details.
4. Documents and Information Required
4.1 Mandatory Information
- Director’s full name (as per PAN)
- Father’s name
- Nationality
- Date of birth
- Personal mobile number and email ID (OTP verified)
- Permanent and present address
- PAN and Aadhaar (mandatory for Indian residents)
- Details of Passport (If having Passport)
4.2 Attachments Required
- PAN card (self-attested)
- Aadhaar card/passport (For Indian Nationals) (self-attested)
- Residential Address proof (e.g., Adhaar Card, electricity bill, bank statement – not older than 2 months)
- Passport (Mandatory for foreign nationals)
- Digital Signature Certificate (DSC) of the Director
- Certification by practicing Chartered Accountant/Company Secretary/Cost Accountant
5. Step-by-Step Process to File DIR-3 KYC
Step 1: Login to MCA website
- Login to the MCA website
- Click ‘Sign In/Sign Up’ button on the homepage.
- However, if not already registered on the MCA website,
- Register by clicking the ‘Register’ button, entering the required details and
- Then logging in by entering the User ID and password.
Step 2: Access the DIR-3 KYC Form
Go to “MCA Services” > “Company e-Filling” > ‘DIN Related Filings’
| Type of Filing | Form to be Selected |
|---|---|
| For First-time filing | Go to ‘DIR-3 KYC’ or |
| For Subsequent Years (if no detail changes) | Go to ‘Form DIR-3 KYC Web’ |
Step 3 :
For First-Time Filing (DIR-3 KYC)
- On Selecting ‘DIR-3 KYC’, The director has to enter the below details on the next page:
Category Details Required Personal Details Name, Father’s Name, Gender, Date of Birth, Nationality Identification Details DIN Number, PAN Number, Aadhaar Number Contact Details Mobile Number, Email ID Address Details Permanent Residential Address, Present Residential Address - Upload scanned copies of PAN, Aadhaar, and Address Proof
- Fill the OTP sent to mobile number and E Mail ID
- Submit electronically with professional certification.
For Subsequent Years (if no detail changes)
- On Selecting DIR-3 KYC Web service, most of the details filled in previous years, will be found pre-filled.
- The details which are not pre-filled will have to be filled by the director.
- The director must enter the DIN number, Mobile number and Email. An ‘OTP’ will be sent to mobile number and email.
- Enter the OTP and click on ‘Next’.
- Submit electronically without professional certification.
Step 4 : Verification & Submission
- Verify details and digitally sign using DSC.
- Submit the form and Get the SRN (Service Request Number) for subsequent tracking.
Step 5: Payment & Confirmation
- No fee is charged if filed before the due date.
- Late filings attract a ₹5,000 penalty.
Step 6: Approval & Acknowledgment
- On successful processing, an acknowledgment is generated.
- Check status via “Track SRN Status” on the MCA portal.
6. Consequences of Non-Compliance
Failure to file DIR-3 KYC can lead to:-
6.1 Deactivation of DIN
DIN will be marked as “Deactivated due to non-filing of DIR-3 KYC” by MCA.
6.2 Late Filing Fee
A fee of ₹5,000 becomes payable for late filing as per Rule 12A read with Rule 12(3).
6.3 Disqualification of Director
Disqualification from being a director in any company.
6.4 Barred from Using DIN
The director cannot file any ROC forms (e.g., appointment/resignation/director changes) until KYC is updated.
7. Common Issues & Solutions
7.1 Mismatch in PAN & MCA database
Ensure name and date of birth on PAN match MCA records exactly.
7.2 Non-receipt of OTP
Ensure correct mobile number/email and check spam folders. OTP is valid for a limited time.
7.3 Aadhaar issues for NRIs
For foreign nationals or NRIs, a valid passport and foreign address proof can be used.
8. How Chartered Accountant / Corporate Professional can Help
A Chartered Accountant / Corporate Professional can assist in:
- Review of DIN Status: Identify directors requiring KYC compliance.
- Document Verification: Review PAN, Aadhaar, and address proof for accuracy.
- Preparation and Filing: End-to-end assistance in form preparation, DSC application/renewal, and certification.
- Remediation of Deactivated DINs: Guidance on filing with penalties and DIN reactivation.
- Annual Compliance Monitoring: Maintain annual alerts to avoid penalties and deactivation
9. Conclusion
DIR-3 KYC is a crucial annual compliance that every DIN holder must adhere to. Missing the deadline not only attracts penalties but can also lead to DIN deactivation, affecting the ability to serve as a director. Filing it timely ensures seamless compliance and reflects commitment to governance.
