Navigating DIR 3 KYC: All You Need to Know

Introduction:

Form DIR-3 KYC (Web) aims to simplify the process for verification of director’s KYC details. Every individual who holds a Director Identification Number as on 31st March is required to file ‘Form No. DIR-3 KYC (Web)’ for the said financial year to validate and confirm the KYC details existing in the MCA21 database.

Requirement of DIR 3 KYC:

All the directors are required to submit their KYC details through DIR-3 KYC to the MCA if they meet the following conditions: -

1. Director Identification Number (DIN) is assigned to a director.

2. DIN is in approved status.

Note: KYC is also required for directors who are disqualified.

TYPES OF DIR 3 KYC FORMS:

• The DIN holder can update or confirm his KYC data through DIR 3 KYC FORM/DIR 3 KYC WEB service for the financial year.

1. DIR 3 KYC WEB:

• For DIN-Holders who have previously submitted KYC information via e-Form DIR-3 KYC then, in those cases, they can avail web functionality through DIR 3 KYC Web to confirm their KYC data available in the MCA database. It is to be kept in mind that updation of KYC data using DIR-3 KYC WEB online service is not possible.

2. DIR 3 KYC FORM:

• Any DIN Holder registering his KYC Data for the first time with the MCA, must use Form DIR-3 KYC to confirm KYC Data. Such a person will not have access to online DIR 3 KYC WEB service. Further, any person who is allotted DIN, must use Form DIR 3 KYC to update KYC data with the MCA database.

Documents Required to be attached with Form DIR 3 KYC:

A. Mandatory Documents Requirements:

1. Mobile Number of Applicant (For OTP purpose);

2. Email ID of Applicant (For OTP purpose);

3. Self-Attested PAN

4. Self-Attested Aadhar Card

5. Self-Attested Passport (if any)

B. For Foreign Resident (if any):

1. In case, the Applicant is a foreign resident, Passport is compulsory to be furnished.  All the KYC documents needs to be notarized/Apostilled/Attested by Indian Consulate.

2. Further, in case, such Applicant (Foreign Resident) is available in India at the time of making application, all the KYC documents needs to be notarized by Public Notary in India and the copy of Visa with the proof of entry of such person in India needs to be provided.

3. In case, the proofs are in language other than Hindi or English then, the proofs should be translated in English/Hindi from professional translator with his/her name, address and stamp. Further, translation done by the notary of home country is also valid.

C. Voluntary Documents List:

1. Self-Attested copy of Address Proof (Bank Statement/Telephone Bill/Mobile Bill/Gas Bill);

2. Self- Attested Driving License, if any of Applicant;

3. Self- Attested Voter ID, if any of Applicant;

KEY POINTS TO TAKE CARE WHILE FILLING THE DIR 3 KYC WEB OR KYC FORM:

Along with the documents listed above, following key points are to be taken care at the time of furnishing Form DIR 3 KYC:

1. Director must enter his/her name as per PAN database, verification of pan is mandatory in the DIR 3 KYC FORM.

2. Director is required to enter his permanent address and in support of the same, proofs as stated above need to be attached with the form.

3. When the current residential address is different from the permanent residential address, it becomes compulsory to furnish the Present residential address along with the proof of the same.

4. Attestation of the afore-mentioned documents by a CA, CS, or Cost Accountant in good standing.

5. Attestation by the specified authorized person in the case of foreign nationals.

DUE DATE AND PENALTY FOR NOT FILING THE DIR 3 KYC FORM:

1. When a director fails to file e-Form DIR 3 KYC WEB OR DIR 3 KYC FORM within the due date (or extended due date) on the MCA 21 portal, the DIN of such a director will be marked as ‘Deactivated due to Non-filing of DIR-3 KYC’ by the ministry.

2. In such cases, the director can re-activate his/her DIN by filing pending e-Form DIR-3 KYC after paying a late fee of INR 5,000/-.

See the following table to have a quick summary regarding DIR-3 KYC Web and Form, Due Date and Purpose:

CONCLUSION: -

It is essential for each and every director to furnish their KYC details to MCA through DIR 3KYC Form or through DIR 3 KYC Web service as the case may be every year and keep their KYC data up to date on MCA portal. Further, it is a mandatory compliance on the part of each and every director and to be followed every year. It is always a good practice to submit KYC details with in the prescribed timeline to avoid late fees and deactivation of DIN.

Refer FAQs of DIR-3 KYC Form from the below link:

https://www.mca.gov.in/MinistryV2/dir3kycfaq.html#:~:text=In%20case%20the%20DIN%20holder,number%20shall%20only%20be%20allowed

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