25 July 2018

DIRECTOR KYC | COMPANIES (APPOINTMENT AND QUALIFICATION OF DIRECTORS) RULES, 2014

Introduction:

The Central Government has recently notified the fourth amendment to the Companies (Appointment and Qualification of Directors) Rules, 2014 (Amendment). By this Amendment, the Central Government, Regional Director (Northern Region) or any other officer (as authorised) are required to de-activate the Director Identification Number (DIN) of an individual who does not submit his particulars as per e-form DIR-3-KYC within the timelines mentioned in the Amendment.

The Amendment was notified on 5 July 2018 and has already come into force from the 10 July 2018.

This legal update briefly summarises the Amendment and describes its ramifications.

Amendment:

1.      Insertion of DIR-3-KYC: The Amendment includes insertion of DIR-3-KYC which contains all details of the DIN allotted individuals, like his full name, fathers name, place of residence (permanent and present), gender, residential status, nationality, voter ID card number, PAN, Aadhar number, driving license number, personal number and personal email ID. The e-form also makes it mandatory for foreign nationals to provide passport details. Proof of identity and proof of address is also to be attached while submitting the e-form. This form is to be digitally signed and duly submitted within the stipulated time as mentioned below.

2.      Deactivation and Reactivation of DIN: If any individual fails to comply with filing of DIR-3-KYC, than their DIN will be deactivated and the same individual can reactivate his DIN only after filing the e-form DIR-3-KYC along with the prescribed fees.

3.      Timeline of filing of DIR-3-KYC: All individuals, who have a DIN allotted to them as of 31 March 2018 shall submit the e-form DIR-3-KYC on or before the 31 August 2018. All individuals who has been allotted a DIN after 31 March 2018 shall submit the e-form on or before the 30 April 2019.

MHCO COMMENT

This Amendment promulgated by the Ministry of Corporate Affairs (MCA) is a part of the process of updating its directors database. In order to avoid the difficulties of reactivating a deactivated DIN, it is advisable that all individuals with an allocated DIN submit the e-form DIR-3-KYC on or before 31 August 2018.

The views expressed in this update are personal and should not be construed as any legal advice. Please contact us directly on +91 22 40565252 or legalupdates@mhcolaw.com for any assistance.