Accounts & Compliance

Director KYC refers to the process through which companies verify and authenticate the identity of their directors. It is a crucial compliance measure aimed at ensuring transparency, accountability, and preventing fraudulent activities within an organization. As part of Director KYC, directors are required to provide essential personal information, such as identification documents, proof of address, and other pertinent details. This process is often mandated by regulatory authorities and is essential for companies to maintain accurate and up-to-date records of their leadership. Director KYC not only helps in adhering to legal requirements but also strengthens corporate governance by establishing the credibility and integrity of individuals holding key positions within a company.

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Director KYC

Who is required to file DIR-3 KYC Form?

As per the Ministry of Corporate Affairs announcement, any person who has been allotted “Director Identification Number (DIN/DPIN)” on or before 31st March 2018 and the status of such DIN is ‘Approved’, needs to file eForm DIR-3 KYC to update KYC details on the MCA portal on or before 5th October 2018. This procedure is mandatory for disqualified directors too.

From the Financial Year 2019-20 onwards, it is mandatory for every director who has been allotted a DIN on or before the end of the financial year and whose DIN status is ‘Approved’, will have to file eForm DIR-3 KYC before 30th September the immediately next financial year.

For example, for the financial year 2020-2021, the directors or partners who were allotted DIN or DPIN by 31st March 2021 are required to file the DIR-3 KYC form before 30th September 2021.

Who can file eForm DIR-3 KYC?

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. Also, any DIN holder who wants to update any information of his KYC details must update the same through the filing of eForm DIR-3 KYC only.

Requirements for filing eForm DIR-3 KYC

• Digital Signature of the director is required for filing eForm.
• Director’s email address and phone number is required while filing the form (which will be verified by an OTP)
• DIN holder and a practicing professional (CA/CS/CMA)certifying the form are the two signatories required in form DIR-3 KYC
• Certification & declaration by a practicing professional like Chartered Accountant, Company Secretary or Cost and Management Accountant.

Documents Required for Filing DIR-3 KYC

• PAN Card
• Aadhar Card
• Passport (In case of foreign national)
• Mobile number and email id

Repercussions of not filing Form DIR-3 KYC on time

As per the provisions of Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, every individual who is allotted DIN as of 31st March of a financial year must submit his KYC on or before 30th September of the immediately next financial year.

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 will continue to remain in ‘Deactivated’ status until KYC is done with a late fee of Rs.5000/-.

Penalty on late filing of DIR-3 KYC

To re-activate the DIN in the future, the director can file the eForm DIR-3 KYC after paying a late fee of Rs.5000/-. The late fees would be payable on or after the due date i.e., 30th September of the financial year in which the form is to be filed. The form is mandatory to be filed by all the directors annually within the specified due date to avoid late fees and deactivation of DIN.

Why FinHub Advisors Pvt Ltd

When considering the crucial task of filing DIR-3 KYC, FinHub Advisors Pvt Ltd emerges as a standout choice for a myriad of reasons. With a proven track record of excellence in corporate compliance and governance, FinHub Advisors Pvt Ltd distinguishes itself through its commitment to precision and reliability. The firm’s experienced team of professionals is well-versed in the intricate details of DIR-3 KYC, ensuring seamless and accurate submissions. Their client-centric approach goes beyond mere regulatory compliance, as they offer personalized guidance tailored to the unique needs of each client. The efficiency, transparency, and integrity embedded in FinHub Advisors Pvt Ltd’s services make them a trusted partner for directors seeking a hassle-free and compliant DIR-3 KYC filing experience. By choosing FinHub Advisors Pvt Ltd, clients can navigate the regulatory landscape with confidence, knowing that their corporate governance requirements are in capable hands.