KYC of Directors

Overview of KYC Directors

Rule 9(1) of the Companies (Appointment and Qualification Of Directors) Rules, 2014

Every applicant, who intends to be appointed as director of an existing company shall make an application electronically in Form DIR-3, to the central Government for allotment of a Director Identification Number (DIN) along with such fees as provided under the Companies (Registration Offices and Fees) Rules, 2014. 

Provided that in case of proposed directors not having approved DIN, the particulars of maximum of three directors shall be mentioned in Form No.INC-32 (spice) and DIN may be allotted to a maximum of three proposed directors through Form INC-32 (spice).

Rule 10(1)(a) Limited Liability Partnership Rules,2009:

Every individual, who intends to be appointed as a designated partner of an existing limited liability partnership, shall make an application electronically in Form DIR-3 under the Companies (Appointment and Qualifications of Directors) Rules, 2014 for obtaining DPIN under the Limited Liability Partnership Act,2008 and such DIN shall be sufficient for being appointed as a designated partner under the Limited Liability Partnership Act,2008.".

Rule 12A of The Companies (Appointment and Qualifications of Directors) Rules, 2014:

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. 

An individual who has already submitted e-form DIR-3 KYC in relation to any previous financial year, submits web-form DIR-3 KYC-WEB through the web service in relation to any subsequent financial year it shall be deemed to be in compliance with the provisions of this rule for the said financial year.

Procedure for KYC Directors

• Download the e-form DIR-3 KYC from the MCA website
• DIN details should be entered
• Enter the particulars of the director
• Attach the mandatory attachment
• Check form
• Digitally signed by the director and practicing professional
• Do the pre scrutiny 
• Upload the form at MCA portal using login credentials

Either e-form DIR-3 KYC or web-form DIR-3 KYC-WEB is filed with the Ministry Of Corporate Affairs.

Documents Required For Directors KYC

• Email ID
• Phone Number
• Photo 
• Aadhar Card
• PAN Card
• Passport
• Voter id
• Driving License
• Voter id

Penalty in Failure to Director KYC

In the case of the Director, KYC is not completed within the time prescribed, the Director Identification Number (DIN) will be disqualified by the government and the person is not eligible to appoint in any other company/LLP.

To rectify of the disqualification, Rs 5,000/- penalty is paid along with the KYC Form.