What is DIR -3 KYC?


What is DIR -3 KYC?

According to the MCA guidelines, it is mandatory to conduct KYC for each person who holds DIN. Every Director who has been allotted with the DIN on or before 31st March 2018 and whose status is approved including disqualified director, would be mandatory to file a DIR-3 KYC form. From the financial year 2019-20, it is mandatory for all the directors who have been allotted with the DIN number on or before the financial year and whose DIN is in approved status has to submit their KYC 3 DIR form on or before 30th September of the immediately next financial year.

Before starting with DIR-3 KYC, it is essential to get information on some important terms. Primary, we will discuss the term DIN (Director Identification Number). As the name itself suggests, DIN is 8 digit unique identification number for Director and it is required to be obtained by every individual who intended to become a Director of a company. It is given to a person who wants to become a director or an existing director of a company.

Now, we will explain the term KYC. KYC stands for ‘Know Your Customer’. Director KYC is introduced by the government to reconfirm the identity of the director.

Form DIR-3 KYC

Form DIR-3 KYC is filled by every director who has been allotted the DIN number. It is mandatory to file a DIR-3 KYC form for all the directors irrespective of Qualified or Disqualified.

Additionally, DIR-3 KYC Web is to be done for the DIN holder who has submitted their DIR-3KYC form in the previous Financial Year and no update is required in his details.

Things to Remember While Filing e-form DIR-3 KYC

• Director will have to provide their mobile number and email id while filling the e-form. This information will be verified by an OTP.
• Director will have to use their digital signature to file this E-form.
• Director will have to ensure that the form is certified by a Chartered Accountant, Cost Accountant, or Company Secretary.

Steps involved in filing DIR-3 KYC form

Let us first look at the steps involved in filing the DIR-3 KYC form

• The first step will be downloading an e-form from the MCA website.
• Provide the DIN details: – The director must provide his DIN in the KYC form. The Director whose DIN has been deactivated due to no filling of KYC can fill this form even after the due date by paying the late fee.
• Then add the relevant details in the form such as:-
1. Name: – The applicant must enter his name and last name and his father’s name according to the PAN. The name will be verified with the PAN.
2. Nationality: – It is important to declare nationality and in the case of a foreign director nationality declared in the passport should be selected.
3. Date of birth:-It is important to provide the date of birth. An individual who is having age below 18 is not liable to fill this form.
4. Address: – While filing the form it is mandatory to provide a permanent residential address. The permanent residential address should match with the proof of permanent address that has to be attested. In case of present residential address is not the same as your permanent address, it is mandatory to enter the present residential address.
5. Provide PAN: – It is mandatory to declare PAN. After entering PAN click on the button Verify Income Tax PAN.
6. Updating Contact Number and Email: – It is important to enter the valid mobile number and email id which will be further verified by sending an OTP. An OTP is sent separately on the mobile number and email.
Note: – The PAN mentioned in the DSC and the PAN mentioned in the form must be the same for the successful validation. In the case of the NRI director, the name mentioned in the form must be the same as the name mentioned in the DSC for successful validation.

• The applicant must upload the following documents for verification:-
1. Proof of permanent address
2. Copy of Aadhar card
3. Copy of passport
4. Proof of present address
5. Optional attachment if any

Make sure that the form is digitally signed by the Chartered Accountant, Cost Accountant, or Company Secretary. It is necessary to enter the details of the practicing professional and then attach their digital signature. Once the form is digitally signed then check the form and send the OTP to the valid mobile number and email. Once the verification is done then upload the Form to the MCA website.

Process after Submission

1. SRN Generation After successful submission of Form DIR-3 KYC, an SRN will be generated. This SRN will be used for future correspondence with MCA.

Email Confirmation
An email confirmation with the receipt of the form will be sent to the personal email address of the applicant. Once, the email is received the process of filing DIR-3 KYC is complete.

Consequences of not filing DIR-3 KYC form

• In case of a director who is supposed to fill this form on or before 30th September fails to file the e-form on the MCA portal, the MCA department will mark the DIN of such a director as deactivated due to Non-filing of DIR-3 KYC.
• If the director wishes to reactivate the form in near future then he can do so after paying a late fee of Rs.5000.
• This fee is payable after 30th September of the year.
• This form is to fill annually by the directors.

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DIR-3 KYC form is a mandatory process that involves the submission of many documents and a digitally signed form by a Chartered Accountant, Cost Accountant, or a Company Secretary.

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