Regulatory Alert: Directors KYC update on Ministry of Corporate Affairs
17 July 2018
Ministry of Corporate Affairs (MCA) has notified Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2018. These rules came into effect from 10 July, 2018.
As part of updating its registry, MCA would be conducting Know Your Customer (KYC) of all Directors of all Companies through a new e-form viz. DIR-3 KYC.
APPLICABILITY AND DUE DATE OF DIR-3 KYC:
- DIN Allotted on or before 31 March 2018: Every individual who has already been allotted Director Identification Number (DIN) on or before 31 March 2018, has to submit e-form DIR-3 KYC on or before 31 August 2018.
- DIN Allotted on or before 31 March of a financial year: Whenever DIN is allotted to any individual as on 31 March of a financial year, e-form DIR-3 KYC has to be submitted to the Central Government on or before 30 April of the immediate next financial year.
PREREQUISITE IMPORTANT POINTS:
MANDATORY ATTACHMENTS WITH E-FORM DIR-3 KYC:
- The Director has to mandatorily provide Unique Personal Mobile Number and Personal Email Id in the e-form and the same shall be verified by One Time Password (OTP).
- Mobile Number and Email Id shall be of the Director himself only for whom the e-form is filled.
- While filing DIR-3 KYC form, Indian Nationals should use PAN based DSC i.e., DSC should contain PAN as specified in the form.
- In respect of foreign nationals, applicant's name in DSC should match with his/her name entered while filing the form (DIR-3 KYC).
- The Director should have a valid Digital Signature Certificate (DSC) for digitally signing of e-form DIR-3 KYC.
- The said e-form has to be certified by a practicing professional (Chartered Accountants (CA) /Company Secretary (CS)/Cost Accountants (CMA)).
- Disqualified Directors are also mandatorily required to submit e-form DIR-3 KYC.
- FOR INDIAN RESIDENT/NATIONALS
- PROOF OF IDENTITY – Copy of Self-attested Permanent Account Number (PAN) Card; and
- PROOF OF RESIDENCE –
- Mandatory attachments:
- Copy of Self-attested latest proof of Permanent Address
- Valid Driving License
- Latest Utility Bills- Electricity Bill or Telephone or Mobile Bill
- Bank Statement disclosing transaction not older than 2 months
- Copy of self-attested Aadhaar Card – In case ‘yes’ is selected in the field “Whether Citizen of India”
- Conditional attachments:
- Copy of Passport – In case ‘Yes’ is selected in the field “Do you have a valid passport”
- Proof of present Address – In case ‘No’ is selected in the field “Whether present residential address is same as permanent residential address”
- FOR FOREIGN NATIONALS – (ALL THE DOCUMENTS TO BE NOTARIZED AND APOSTILLED)
- PROOF OF IDENTITY –
- Copy of Self attested valid passport
- PROOF OF RESIDENCE –
- Copy of self-attested valid Driving license or latest utility bill viz. telephone bill/mobile bill/water bill/Electricity bill containing address along with Zip/Pin Code.
CONSEQUENCE OF NON-FILLING OF THE E-FORM:
Where any Director fails to submit the e-form within the stipulated time, the Central Government or Regional Director shall deactivate the DIN. The deactivated DIN shall be activated only after filing of e-form DIR-3 KYC along with prescribed fees under the Companies (The Registration Offices and Fees) Rues, 2014.