A Company is an artificial judicial person created by law having separate legal entity, perpetual succession and limited liability. It is an association of persons having separate legal existence from the persons forming it.
Unlike some of the other forms of business enterprises the ownership and management of a company are separated. Shareholders by contributing towards the capital of the company become the owners of the company. Board of Directors are the collective group of people elected by the shareholders to manage the company and its day to day activities.
The Companies Act, 2013 and rules thereto, have prescribed various forms and rules to maintain transparency and integrity with reference to the directors of the company.
DIR – 3 KYC was introduced in the year 2018 by the Ministry of Corporate Affairs. As per the act “Every individual who holds a Director Identification Number (DIN) as on 31st March of a financial year as per these rules shall, submit e-form DIR-3-KYC for the said financial year to the Central Government on or before 30th September of immediate next financial year.”
The objective behind introduction of FORM DIR – 3 KYC was to have true and updated records of the individual holding DIN and to deactivate the DINS which are not being used. Often it is found that while applying for DIN the information provided by the individuals is either fraud or becomes outdated. Hence, it becomes difficult for the Government to take action on individuals in case of non-compliance or fraud. DIR – 3 KYC removes these difficulties.
Provisions:-
- Applicability – Any DIN holder who is filing his KYC details for the first time with MCA, must file all KYC details only through eForm DIR-3 KYC. There is no option for such a person to access the web-service for his KYC.
- Date for filing – As per the provisions of Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, every individual who is allotted DIN as on 31st March of a financial year must submit his KYC on or before 30th September of the immediately next financial year.
- Penal Provisions – If the DIN holder does not file his annual KYC within the due date of each financial year, such DIN shall be marked as ‘Deactivated due to non-filing of DIR-3 KYC’ and shall remain in such Deactivated status until KYC is done with a fee of Rs.5000.
- Details required for filing DIR 3 :- Following details are required
– Name (as per PAN database)
– Father’s Name (as per PAN database)
– “Date of Birth (DoB)” (as per PAN database)
– PAN Number (mandatory for citizens of India)
– Personal Mobile number
– Personal Email Address and Permanent/ Present address.
Aadhar details of every DIN holders are mandatory while filing the DIR – 3 Kyc
The details of DIR – 3 are uploaded on the DIN holders’ database for record keeping. DIR -3 is a progressive introduction that will help the government to keep a check on the directors and protect the interest of the shareholders and other stakeholders.
Kartik M Jain & Associates, CA in Pune is a professionally managed firm serving domestic and international clients providing services relating to direct and international taxation, indirect taxation, auditing and assurance and Consultancy. It is amongst the best CA firms in Pune. With a team of expert and experienced Professionals, The firm aims to provide quality and effective services. The firm provides complete end to end solutions to your complete business needs under one roof. Our sister Firm, Payal K Jain & Associates, a Company Secretary in Pune provides services in relation to Company Formation in Pune and across India, Corporate Law and Compliance, ROC filings, FEMA, Trademark Registration, etc.
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