ICAI Advisory for KYC of Directors :DIR-3 KYC

By | July 26, 2018
(Last Updated On: July 26, 2018)
ANNOUNCEMENT

Sub: MCA to update KYC of Directors | New E-form DIR-3 KYC has been notified

The Ministry of Corporate Affairs as part of updating its registry, would be conducting KYC of all Directors of all companies annually through a new eform viz. DIR-3 KYC. As part of this every director who has been allotted DIN on or before 31-03-2018 and whose DIN is in ‘Approved’ status, would be mandatorily required to file form DIR-3 KYC on or before 31-08-2018, using his/her own Class – II DSC and the form would be required to be digitally certified by a practicing professional (CS/CA/CMA) using Class-II DSC. Filing of Form would be mandatory for Disqualified Directors also.

The following points to be taken into account as per DIR-3 KYC for providing details and information:

  • Every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN status is ‘Approved’ would be mandatorily required to file form DIR-3 KYC.
  • Filing of DIR-3 KYC would be mandatory for Disqualified Directors.
  • Due date of filing of DIR-3KYC is on or before 31st August, 2018.
  • In case of Indian nationals, Income-tax Permanent Account Number (Income-tax PAN) is mandatory in all cases even if there is no change in Income-tax PAN. In such cases, director details should be as per Income-tax PAN. In case the details as per Income-tax PAN are incorrect, director/designated partner is advised to first correct the details in Income-tax PAN.
  • Mandatory Information which is required in DIR-3 is – Unique Personal Mobile Number, Personal Email ID, One time Password (OTP) on Email ID and OTP on Mobile No.
  • Certification of DIR-3 KYC – DSC (class- 2) of Director & DSC (class – 2) of practicing professional (CA/CS/CMA).
  • If director fails to file DIR-3 KYC, the MCA 21 system will mark all approved DINs (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason as ‘Non-filing of DIR-3 KYC’.
  • After the due date of filing DIR-3 KYC in respect of such deactivated DINs shall be allowed upon payment of a specified fee only, without prejudice to any other action that may be taken.
  • MCA notifies ‘Nil Fee’ and ‘Delayed Fee of Rs. 5,000’ for Filing e-Form DIR-3 KYC under rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, applicable w.e.f. 10th July 2018.
  • MCA notifies format of e-form DIR-3 KYC under new Rule 12A (Directors KYC) along with procedure for restoration of deactivated DINs of Directors, applicable w.e.f. 14th July, 2018

The members who are Directors are requested to fill the Form at the earliest and other Directors too are requested to fill the Form within the due date. Form is available at the link http://www.mca.gov.in/

The members are also requested to be prepared for certifying DIR – 3 of the directors who would be updating their details and filing with MCA.

With Regards

CA. Debashis Mitra,
Chairman, Corporate Laws & Corporate Governance Committee
The Institute of Chartered Accountants of India
CA. Dhinal A. Shah,
Vice Chairman, Corporate Laws & Corporate Governance Committee
The Institute of Chartered Accountants of India
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