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Allotment of DIN Process Simplified

Company Law : Section 266B of the Companies Act, 1956 – Director Identification Number

The MCA vide Notification dated March 26, 2011 has issued the Companies (Director IdentificationNumber) Amendment Rules, 2011 (Rules) whereby the process for obtaining a Director IdentificationNumber (DIN) has been simplified. In terms of the Rules all applications for DIN will be made via eForm No. DIN-1 (Form) and no physical submission of documents will be accepted for the purpose.

The Form and the accompanying scanned documents can be digitally signed by a Chartered Accountant or a Company Secretary or a Cost and Works Accountant holding a certificate of practice. The Form can also be digitally signed by aCompany Secretary in full time employment of the company or by the Managing Director or Director of the company in which the applicant intends to be a director. Further, the Form can also be digitally signed by the applicant if he/she has his/her own Digital Signature Certificate.The individual that digitally signs the Form is required to certify that he/she has verified that the particulars of the applicant and the attached documents are true and correct. Upon successful payment of the prescribed fee and provided the Form has been signed by a practicing profession, the system will automatically generate the approved DIN or a provisional DIN in all other cases.

GENERAL CIRCULAR NO. 5/2011 [F.NO.2/1/2011 CL.V], DATED 4-3-2011

I am directed to inform that the Ministry™s has re-examined the process of allotment of Directors Identification  Number (DIN) to be obtained u/s 266B of the Companies Act, 1956. The present process is cumbersome and time consuming. Representations have been received in the Ministry that the documents required to be submitted should be  simple to prove the existence/residence of a person, who intend to become a director of a company.

The Ministry has constituted a Group to examine the business process re-engineering under MCA-

21. In order to speed up and simplify the process to obtain a DIN, the below mentioned procedure

have been recommended.

1.  Application for DIN will be made on eForm; No physical submission of documents shall be accepted and for this purpose Scanned documents along with verification by the applicant will be attached with the eForm. Only online fee payment will be allowed i.e. No challan payment

2. The application can also be submitted online by the applicant himself using his DSC.

3.  DIN 1 eForm can be digitally signed by the professional who shall also confirm that he has verified the particulars of the Applicant given in the application.

4.  Where the DIN 1 is verified by the professional, the DIN will be approved by the system immediately online.

5. In other cases the DIN cell will examine the application and same shall be disposed of within one or two days.

6.  Companies (Directors Identification Number) Rules, 2006 are being amended on the above lines.

7.  Penal action against the applicant and professional certifying the DIN application in case of false  information/certification as per provisions of section 628 of the Act will be taken in addition  to  action  for  professional  misconduct  and  revocation  of  DIN,  allotted  on  false information.

8. The above procedures is expected to enable allotment of DIN on the same day.

9. The above procedures applies to filing of DIN 4 intimating changes in particulars of Directors.

A notification to notify the aforesaid procedure is being issued. After issue of necessary notification, the applicant/professionals/DIN Cell are advised to follow the notified procedures for allotment of DIN.

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About eMinds Legal

eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

Comments

  1. admin says:

    This will ensure to get DINs easily

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