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Guidance note on Filing of Form DIR-3 KYC

Friends,

The Ministry of Corporate Affairs has vide Companies (Appointment and Qualification of Directors) fourth Amendment Rules, 2018 notified on 5th July, 2018 provided for filing of Form DIR-3 KYC in order to conduct KYC of all Directors of all companies annually.

I. Applicable Rules

Rule 12A, Rule 11(2) and Rule 11(3) of the Companies (Appointment and Qualification of Directors) Rules, 2014 (Section 153 of the Companies Act, 2013)

II. Applicability for Filing DIR-3 KYC

  1. Applicable to all Directors of all Companies / Designated Partners of LLP
  2. The onus of filing of this Form is on Individual Director / Designated Partner

III. Timelines for filing Form DIR-3 KYC

  1. For DIN’s allotted prior to 31st Mar, 2018 – Form DIR-3 KYC has to be filed by 31st Aug, 2018
  2. For all other cases – Form DIR-3 KYC has to be filed by 30th April of immediate next financial year

IV. Fee and Penalty

  1. There is no fee for filing of Form DIR-3 KYC if filed within timelines.
  2. However, in case any Individual fails to file Form DIR-3 KYC within prescribed timeline, then his DIN shall be deactivated
  3. The de-activated DIN shall be re-activated only after e-form DIR-3-KYC is filed along with fees of Rs. 5000/-.

V. Pre-requisites for filing Form DIR-3 KYC 

  1. Self attested copy of Pan Card (mandatory for Indian Citizen)
  2. Self attested copy of Aadhaar Card (mandatory for Indian Citizen)
  3. Self attested copy of Passport (mandatory if applicant is an Indian citizen having a valid passport)
  4. Apostilled copy of Passport (mandatory if applicant is a foreign national)
  5. Self attested proof of permanent address
    1. Address proofs like passport, election (voter identity) card, and ration card, driving license, electricity bill, telephone bill or aadhaar shall be attached and should be in the name of applicant only
    2. In case of Indian applicant, documents should not be older than 2 months from the date of filing of the eForm
    3. In case of foreign applicant, address proof shall be appostilled and should not be older than 1 year from the date of filing of the eForm

6. Proof of present address in case different form permanent address

7. 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.

8. In the case of foreign nationals, translation done by the notary of home country is also acceptable.

9. In case of Foreign Residents, the attached supporting documents should be attested by the Consulate of the Indian Embassy or Foreign public notary

VI. Signing and Certification of the Form

  1. Form DIR-3 KYC shall be digitally signed by the individual Director himself using his digital signatures. It is therefore important for all directors to have digital signatures (DSC) now.
  2. The PAN mentioned in the form and the PAN mentioned in the DSC affixed must be the same for successful validation
  3. In case of foreign nationals, who do not have PAN, the name mentioned in the form must be same as the name mentioned in the DSC affixed for successful validation
  4. The Form shall be certified by a Chartered Accountant/ Cost Accountant or Company Secretary in whole-time practice.

VII. Key check points for filing of DIR-3 KYC 

  1. Basic details of the director to be filled in like Name, Father’s name, Nationality, Date of Birth, Income-tax Permanent Account Number (PAN), Permanent Address etc.
  2. Details should be as per PAN. In case the details as per PAN are incorrect, it is advised to first correct the details in PAN
  3. The address provided in the form to exactly match with the proof of permanent address
  4. In case a Foreign national resident in India, address in India must be entered as present residential address
  5. The applicant is required to provide valid Mobile no. and email Id on which OTP shall be sent to verify the same. Separate OTPs will be sent to mobile number and email ID.
  6. There is a button in the Form to “SEND OTP”, which will be enabled only after successful Pre-scrutiny of the form
  7. OTPs must be verified before uploading the form.
  8. The form will be processed in STP mode
  9. Approval mail shall be sent to the email ID of the applicant and to the user who has filed the eForm.

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Best,

Sumit Pahwa

Compliance Evangelist

EA Mobile: 98733 02025

http://twitter.com/sumitpahwa77

The Author is a Co-founder and Partner with eMinds Legal, a leading Corporate Firm in India specializing in Governance, Risk & Compliance.

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About Sumit Pahwa

Sumit Pahwa | Partner

A Corporate Lawyer & Company Secretary, Sumit has over 17 years of experience in dealing with the Corporate Legal and Compliance issues of small, medium and large corporates and is the founder partner of the law firm “eMinds Legal”, a Corporate Law Firm based in Gurgaon specialising in Corporate Secretarial, Corporate Legal and Compliances.

Sumit is an expert in Corporate Laws, Governance, Risk & Compliance and has independently led investigations related to Sexual Harassment, Fraud, Cybercrime and whistle blower cases.

Sumit is also the Lead Author of “Corporate Law Referencer” - a leading book on Companies Act, 2013 and LLP Regulations and published by Lexis Nexis.

Sumit is a regular speaker at the Institute of Company Secretaries of India, various management colleges and several small and large corporates on Corporate Laws, Sexual Harassment Laws and Compliances.

Sumit leads the Corporate Legal vertical at eMinds Legal and is supported by a strong team of Corporate Lawyers at eMinds Legal who advise corporates for their routine corporate legal requirements.

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