The Ministry Of Corporate Affairs
The MCA regulates all the corporate affairs in India through the Companies Act, 1956, 2013 and many other acts, bills, and rules. An important job role of the MCA is to protect investors. It offers many other important services to its shareholders. It has recently announced a new rule regarding the E-form DIR-3.
The MCA has recently amended and inserted a new rule, Rule 12A, vide the ‘Companies (Appointment and Qualification of Director) rules Fourth Amendment Rules, 2018.
What is the rule of E-form DIR-3?
This rule has notified the format of e-form DIR-3 KYC (Director’s KYC) which mandates the KYC update in eForm DIR-3 KYC (Director’s KYC) FOR ALL DIRECTOR’S, AND ALL PARTNERS/DESIGNED PARTNERS OF LLP failing which the directors/partners DIN would be disqualified and would be liable for a penalty of Rs. 5000/-
What is KYC?
KYC stands for know your customers (alternatively, know your clients) It is a technique used by the government to recheck or reconfirm your identity. The government has made this kind of company registration mandatory.
Who has to file DIR-3 KYC?
Any person, whether they are Indian nationals, NRI’s or foreign nationals, who are directors of companies/LLPs in India are required to file the said form.
What is the time limit for filing DIR-3 KYC?
If the DIN ( Director Identification Number) is allocated before 31st March 2018, all the directors of companies and partners in LLP’s are required to file the said form on or before 31st August 2018.
In case of disqualification of DIN?
If the DIN allotted before 31st March 2018 is deactivated or disqualified, it would still be mandatory to file DIR-3 KYC on or before 31st August 2018.
Does the form apply to LLP’s?
The form applies to the partner’s of LLP’s as well.
What are the rules to be followed from the financial year 2018-19?
If the Director’s Identification Number (DIN) is allocated after the company registration on or before 31st March of a financial year, the rules state that the DIR-3 KYC form must be submitted to the Central Government on or before 30th April of the immediate next financial year.
What are the requirements of the form?
The director must ensure the availability of the following:
- A unique and personal mobile number duly verified by an OTP (one-time password)
- A personal e-mail ID duly verified by an OTP (one-time password)
- All Directors KYC documents such as :
- copy of PAN card
- Aadhaar card number
- Passport (if held)
- Copy of current address proof (bank statement or telephone bill)
The form should be filed by every Director using his own DSC and should be duly certified by a practicing professional (CA/CS/CMA).
What are the consequences of not filing the form?
The government shall de-activate the DIN of an individual who does not fill the form within the stipulated period of time.
What are the consequences of delay in filing the form?
The de-activated DIN will be re-activated with a fine of Rs. 5000/- for delayed filing of the form.
A specimen of the E-form DIR-3.
This is a very important step taken by the Ministry of Corporate Affairs due to a significant increase in the number of shell companies. Therefore, it is advisable to comply with the rules and file for DIR-3 KYC at the earliest.
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