Note on Director Identification Number (DIN)

NOTE ON DIRECTOR IDENTIFICATION NUMBER (DIN)

 

 Power of Central Government has been delegated to the Regional Director, Joint Director, Deputy Director or Assistant Director posted in the office of Regional Directors at Noida, Uttar Pradesh vide notification dated 21st May, 2014 in respect of section 153 and 154 of the Companies Act, 2013.

 

  APPLICATION FOR ALLOTMENT OF DIRECTOR IDENTIFICATION NUMBER (DIN)

 {Section 153 of the Companies Act, 2013 read with rule 9 of the Companies (Appointment and Qualification of Directors) Rules, 2014}

Every individual intending to be appointed as Director in an Indian Company or designated partners of LLP is required to make an application to Central Government for allotment of a unique identification, namely, Director Identification Number (DIN) in the e-form DIR-3 along with the fees.

 E-form DIR-3 shall be filed with the following documents:

  1. Photograph,
  2. Identity proof
  3. Proof of residence
  4. Specimen signature duly verified

 

The above mentioned attachment except no. 4 of the applicant attached with the e-form DIR-3 must be attested by the Chartered Accountant or the Company Secretary or the Cost Accountant, in whole-time practice. The attesting authority must indicate the following while attesting the documents:-

  1. Signatures;
  2. Name in full in Capitals;
  3. Registration No.; and
  4. Seal/ Stamp.

  

In case, the Director/Designated Partner is residing outside India:

 The supporting documents should be attested by the Consulate of the Indian Embassy and Foreign public notary. In case of Director, supporting documents can also be attested by Company secretary in full time employment/CEO/Managing director of the Indian company in which he / she proposed to be a Director.

 

The following are the mandatory attachments to be filed in all cases:

 

  1. Proof of Identity of applicant
    1. In case of Indian nationals, Income-tax PAN is a mandatory.
    2. In case of foreign nationals, passport is a mandatory.

 

Note: Proof of identify enclosed with e-Form DIR-3 should also contain the date of birth of the applicant and the same should match the date of birth filled in the application form. In case the proof of identify does not indicate the Date of Birth then additional proof of Date of Birth, duly certified/ attested, should be attached.

 

  1. Proof of residence of applicant
    1. Address proofs like passport, election (voter identity) card, and ration card, driving license, electricity bill, telephone bill or Aadhar

 

Note: In case of Indian applicant, documents should not be older than 2 months from the date of filing of the e-Form. In case of foreign applicant, address proof should not be older than 1 year from the date of filing of the e-Form.

 

In case of proofs which are in languages other than Hindi / English, the proofs should be translated in Hindi / English from professional translator carrying his details (name, signature, address) and seal. In the case of foreign nationals, translation done by the notary of home country is also acceptable.

 

In case the name of a person does not have a last name, then his or her father’s or grandfather’s surname shall be mentioned in the last name along with the declaration in Form DIR-3A.

 

 

ALLOTMENT OF DIN

{Section 154 of the Companies Act, 2013 read with rule 10 of the Companies (Appointment and Qualification of Directors) Rules, 2014}

On the submission of the e-form DIR-3 on the portal and payment of the requisite amount of fees an application number shall be generated by the system automatically.

After generation of application number, the Central Government shall process the applications received for allotment of DIN, decide on the approval or rejection thereof and communicate the same to the applicant along with the DIN allotted in case of approval by way of a letter by post or electronically or in any other mode, within a period of one month from the receipt of such application.

If the Central Government, on examination, finds such application to be defective or incomplete in any respect, it shall give intimation of such defect or incompleteness, by placing it on the website and by email to the applicant who has filed such application, directing the applicant to rectify such defects or incompleteness by resubmitting the application within a period of 15 days of such placing on the website and email

The Central Government shall –

  1. reject the application and direct the applicant to file fresh application with complete and correct information, where the defect has been rectified partially or the information given is still found to be defective;
  2. treat and label such application as invalid in the electronic record in case the defects are not removed within the given time; and
  3. Inform the applicant either by way of letter by post or electronically or in any other mode.

In case of rejection or invalidation of application, the fee so paid with the application shall neither be refunded nor adjusted with any other application.

The Director Identification Number (DIN) so allotted is valid for the life-time of the applicant and shall not be allotted to any other person.

 

INTIMATION OF DIN TO COMPANY

{Section 156, Section 157, Section 159 of the Companies Act, 2013 read with rule 10(A) of the Companies (Appointment and Qualification of Directors) Rules, 2014}

Every director, functioning as a director in one or more companies on or before the 30th June, 2007 and who has not yet intimated his DIN to such company or companies shall, within one month of the receipt of Director Identification Number from the Central Government, intimate his Director Identification Number to the company or all companies wherein he is a director as per Form DIR-3B.

If any individual or director of a company contravenes the above provisions, such individual or director of the company shall be punishable with imprisonment for a term which may extend to 6 months or with fine which may extend to Rs. 50,000/- and where the contravention is a continuing one, with a further fine which may extend to Rs. 500/- for every day after the first during which the contravention continues.

 

The intimation by the company of Director Identification Number of its directors shall be furnished in e-form DIR-3C within 15 days of receipt of intimation under form DIR-3B.

If a company fails to furnish Director Identification Number before the expiry of the 270 days as per section 403 with additional fee, the company shall be punishable with fine which shall not be less than Rs. 25,000/- but which may extend to Rs. 1 Lakh and every officer of the company who is in default shall be punishable with fine which shall not be less than Rs.25,000/- but which may extend to Rs. 1 lakh.

 

OBLIGATION TO INDICATE DIRECTOR IDENTIFICATION NUMBER

{Section 158 of the Companies Act, 2013}

Every person or company, while furnishing any return, information or particulars as are required to be furnished under the Companies Act, 2013, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the Director or contain any reference of any director.

 

INTIMATION OF CHANGES IN PARTICULARS SPECIFIED IN DIN APPLICATION

{Rule 12 of the Companies (Appointment and Qualification of Directors) Rules, 2014}

Every individual who has been allotted a Director Identification Number shall, in the event of any change in his particulars as stated in e-Form DIR-3, intimate such change(s) to the Central Government within a period of 30 days of such change(s) in e-Form DIR-6 along with copy of the proof of the changed particulars.

The Central Government, upon being satisfied, after verification of such changed particulars from the enclosed proofs, shall incorporate the said changes and inform the applicant by way of a letter by post or electronically or in any other mode confirming the effect of such change in the electronic database maintained by the Ministry.

The DIN cell of the Ministry shall also intimate the change(s) in the particulars of the director submitted to it in e-Form DIR-6 to the concerned Registrar(s) under whose jurisdiction the registered office of the company(s) in which such individual is a director is situated.

The concerned individual shall also intimate the change(s) in his particulars to the company or companies in which he is a director within 15 days of such change.

 

PROHIBITION TO OBTAIN MORE THAN ONE DIN

{Section 155 and Section 159 of the Companies Act, 2013}

 No individual, who has already been allotted a Director Identification Number shall apply for, obtain or possess another Director Identification Number.

If any individual or director of a company contravenes the above provisions, such individual or director of the company shall be punishable with imprisonment for a term which may extend to 6 months or with fine which may extend to Rs. 50,000/- and where the contravention is a continuing one, with a further fine which may extend to Rs. 500/- for every day after the first during which the contravention continues.

 

CANCELLATION OR SURRENDER OR DEACTIVATION OF DIN

{Rule 11 of the Companies (Appointment and Qualification of Directors) Rules, 2014}

The Central Government or Regional Director (Northern Region), Noida or any officer authorised by the Regional Director may, upon being satisfied on verification of particulars or documentary proof attached with the application received along with fee as specified in Companies (Registration Offices and Fees) Rules, 2014 from any person, cancel or deactivate the DIN in case-

  1. the DIN is found to be duplicated in respect of the same person provided the data related to both the DIN shall be merged with the validly retained number;
  2. The DIN was obtained in a wrongful manner or by fraudulent means, but before cancellation or deactivation of DIN an opportunity of being heard shall be given to the concerned individual.
  3. of the death of the concerned individual;
  4. the concerned individual has been declared as a person of unsound mind by a competent Court;
  5. If the concerned individual has been adjudicated an insolvent.
  6. on an application made inForm DIR-5 by the DIN holder to surrender his or her DIN along with declaration that he has never been appointed as director in any company and the said DIN has never been used for filing of any document with any authority, the Central Government may deactivate such DIN, but before deactivation of any DIN in such case, the Central Government shall verify e-records.

 

Note: Application in Form DIR-5 along with the prescribed fee and along with the proof of identity, proof of residence, affidavit, letter of authorisation, petition, affidavit verifying the petition and such other required documents shall be filed physically to the Regional Director, Noida.

 

Explanation: For the purposes of clause (2) –

(i) the term “wrongful manner” means if the DIN is obtained on the strength of documents which are not legally valid or incomplete documents are furnished or on suppression of material information or on the basis of wrong certification or by making misleading or false information or by misrepresentation;

(ii) The term “fraudulent means” means if the DIN is obtained with an intent to deceive any other person or any authority including the Central Government.

 

PUNISHMENT

Company and every officers in default shall be punishable with fine which shall not be less than Rs. 50,000/- but which may extend to Rs. 5 Lakh.

 

 

 

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 For any further queries, feel free to Contact

 

VISHAL SHARMA

Company Secretary

Mob: 9716763754

Email: csvishalpbs@gmail.com, vishal_swiss456@yahoo.in

 

 

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