Form DIR-3 KYC: A new step to weed out fictitious directors

A new step has been taken by ministry for updating database of directors registered and ensuring that only genuine individuals are responsible for running the affairs of business.

A new E-Form DIR-3 KYC has been introduced under new Rule 12A, vide the Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2018 dated July 5, 2018.

Information/Documents required for filing Form DIR-3 KYC are:

1. PAN based DSC of Director duly registered in case of Indian National;
2. In respect of Foreign Nationals, applicant’s name in DSC would be matched with his/her name on Passport & entered while filing the Form DIR-3 KYC;
3. Unique Personal Mobile Number and Personal Email ID that would be duly verified by OTP;
4. Self-attested PAN card;
5. Self-attested Copy of Passport (mandatory in case of Foreign National and in case of Indian Nationals, if procured);
6. Self-attested Aadhar Card in case of Indian National;
7. Self-attested Permanent Address Proof (as detailed in Rule 16 of Companies (Incorporation) Rules, 2014);
8. Self-attested Present Address Proof, if present address different from permanent address.
9. Self-attested copy of Driving License & Voter ID, if procured

Note:

1. In case of Indian Resident, Name, Father’s Name, Date of Birth of applicant shall be as per PAN and all the attachments are required to be certified by practicing professional.
2. In case of directors who are Foreign Nationals, identity & address proof shall be duly attested by Foreign Public Notary/ Apostillisation/ Consularization.
3. Personal Mobile Number and Personal Email ID (personally accessible by individual) would be duly verified by OTP (valid for 15 minutes) which is required to be entered in the form.
4. As per current understanding, this form is to be filed on annual basis by all the individuals holding DIN/ DPIN till April 30 of immediately succeeding financial year.

Form DIR-3 KYC has been notified and is required to be filed by every director (including Disqualified Directors) using his/ her DSC and the same shall be certified by a practicing professional (CA/CS/CMA).

Ministry has asked the directors to fill E-Form DIR-3 KYC by August 31, 2018. The exercise covers all DINs issued up to March 31, 2018 and has “Approved” Status. After August 31, 2018, DIN of directors who has not filed the form, shall be marked as deactivated with reason as “Non- fling of Form DIR-3 KYC” and the same can be rectified and updated as “Approved” by filing Form 3 KYC with delayed fees

The fee of Form is NIL before August 31, 2018 and the delayed fee is Rs. 5,000/-

Challenges in E-Form DIR-3 KYC:

• The notification details that the form is required to be filed by Disqualified director as well. However, there might be challenges in filing of form for such directors.
• The fact that Mobile No. & e-mail ID belong to the applicant is required to be certified by CA/CS/CMA

Process of Filing Form DIR-3 KYC

1. The Board is required to seek information/documents from all the directors. Board can also advise directors who have resigned from the Board to comply with this new requirement of act
2. Avail DSC of applicant as prescribed by the authority, if director does not already have DSC
3. All the information, original documents along with form shall be sent to practicing professional for certification.
4. Practicing Professional needs to ensure the information, say personal credentials and documents to be attached and then, Form DIR-3 KYC would be filed.

The last date of filing the form has been revised to September 15, 2018 to August 31, 2018 but the process needs to be initiated by the Board at the earliest.

CS Ayushi Jain, Partner