Bad News for Existing DIN Holders

The Ministry of Corporate Affairs have recently notified a fresh regulations which can have a huge impact on Existing DIN Holders who are not Directors of any startup. The Notification states-

1. As per the extant rules, in respect of an individual who is in possession of Duplicate/Multiple DINs, he can retain the Oldest DIN only. DINs obtained later have to be surrendered.Please note that on approval of form DIR-5, all existing/erstwhile associations of the surrendered DIN shall be automatically mapped to the retained DIN.

Existing DIN Holders might not be able to surrender their DIN
2. In respect of an individual with a single DIN, if it is/was once associated with any LLP or Company, it is NOT eligible for surrender. Stakeholders 
may kindly take note and plan accordingly.

In other words, only holders who have two DIN Numbers and individual who have applied for DIN but have never become directors/designated partners of any company or Limited Liability Partnership shall be allowed to surrender their DIN. This has been done so as to avoid a situation where non-compliant Directors  can get away by surrendering their DIN.

If you have any query in this regards write to us at Taxmantra.com

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