DIN-KYC

DIN (Director Identification Number) is a unique identification number given to a person who wishes to be a director or an existing director of a company. DIN is obtained by submitting an application in e-Form DIR-3, which was originally intended to be a one-time process for anyone wishing to become a director of one or more companies. Now with an update in MCA’s registry, it becomes mandatory for all directors having DIN to submit their KYC details in e-Form DIR 3 KYC every year.

 

 

Director KYC (DIR-3 KYC) filing to the ROC is a mandatory annual compliance for the Director or the designated partners. Even if the holder of DIN is not a Director/Designated Partner in any Company/LLP, the Filing of DIR-3 KYC is mandatory every year to keep the DIN active. DIR-3 KYC would be mandatory for disqualified directors also. While filing the form, the Unique Personal Mobile Number and Personal Email ID would have to be mandatorily indicated and would be duly verified by One Time Password (OTP). Ministry of Corporate Affairs (MCA) has introduced a yearly KYC (Know Your Customer) process for all those who hold Director Identification Number (DIN) issued by the MCA. In other words every person who has been allotted a DIN Number prior to 31st March of the year are required to file KYC documents/Updated Email and Mobile to the ROC. The purpose of filing the form to the ROC is to keep the records of the ROC updated with the correct address, mobile and email address of the directors/designated partners.

The DIN holders assigned DIN by 31st March 2023 need to complete the e-Form DIR-3 KYC by 30th September 2023.The DIN Numbers for which the KYC is not filed within its due date get deactivated and the same can be activated after the filing of DIR-3 KYC with late filing fee of Rs. 5,000/- (Five thousand only) for each defaulting director or the designated partner. A company/LLP should ensure that the DIR-3KYC form is filed with the ROC for every person who has been allotted a DIN number.

FAQs on DIN KYC:

• Who is required to file DIR-3 KYC form? 

Any director who has been allotted “Director Identification Number” (DIN/DPIN) and the status of such DIN/DPIN is “Approve” needs to file Form DIR-3 KYC to update KYC details with the Ministry. After the expiry of the due dates, ministry shall mark all the non-compliant DIN/DPIN against which DIR-3 KYC form has not been filed as “De-activated as non-filing of DIR-3 KYC”.

• Who can file KYC through DIR-3 KYC web-series?

Any DIN holder who has already submitted e-form DIR-3 KYC in any of the previous financial years and who does not require update in any of his KYC details as submitted, may perform his annual KYC by accessing DIR-3 KYC web service. No fee is payable up to the due date. After the due date, a fee of Rs. 5000 shall be payable.

• What details are required to be filled in the form?

Name (as per PAN database), Father’s Name (as per PAN database), “Date of Birth (DoB)” (as per PAN database), PAN Number (mandatory for citizens of India), Personal mobile number and personal email-id and permanent/present address.
Further, Aadhar is mandatory, if it is assigned. If not, then Voter ID or Passport or Driving License shall be attached. Accordingly, copy of any one of the above selected information is to be attached.

• Is multiple filing of form DIR-3 KYC allowed?

System will not allow multiple filing of form DIR-3 KYC for an applicant. In case KYC is already filed for a DIN, and such DIN is entered again, system throws an error that the form is already filed.

• Can non-resident directors provide Indian mobile number? 

In case the DIN holder is a resident of India, the address must be an address in India and mobile number must be an Indian mobile number. In case DIN holder is non-resident, foreign address and foreign number shall only be allowed.

• Is a disqualified director required to file form DIR-3 KYC?

Yes. Any person who has been allotted DIN and where the status of such DIN is ‘Approved’, is required to file form DIR-3 KYC. Hence, disqualified directors are also required to file form DIR-3 KYC.

DPT-3

MCA vide its notification dated 22^nd January 2019 notified that every company other than a government company must file a one-time return in DPT 3. DPT-3 is a return of deposits that companies must file to furnish information about deposits and/or outstanding receipt of loan or money other than deposits. This is form is a one-time return form of loans that has to be filed by a company that has outstanding loans not treated as deposits. It is also required to be filed annually. All Outstanding receipts of Money or Loan by the company that prevailed from 1^st April, 2014 up to 22^nd January 2019 must be covered under the DPT-3 form. Except for the Government companies, all other companies which include all private limited companies, OPC, limited companies or Section 8 Company have to mandatorily file this form.

As per the Companies (Acceptance of Deposits) Amendment Rules, 2019, all the companies have to compulsorily file the one-time deposit return in e-form DPT-3 within 90 days from the end of Financial Year 2022-23 i.e. 30^th June, 2023.

Applicability to File DPT-3:

• According to rule 16A, DPT-3 must be filed by all the companies who have received money and the loan which is due.

• The DPT-3 form must be filed by all the companies including small, private, non-small, OPC etc.

• Both secured and unsecured loans along with advances for goods and services must be filed in the DPT-3 Form.

• Even if the holding company or subsidiary company or associate company obtains the loan then it also has to file the DPT-3 Form

• If the company has not paid the loan before 1^st April, 2014 which is still continuing then such loans have to be reported to the ROC under the DPT-3 Form.

Consequences of non-filing:

When the company does not adhere to the requirements of DPT-3 and keeps accepting deposits then it will face the following consequences:

• Under Section 73A, penalty of minimum Rs. 1 crore or twice the amount of deposits whichever is lower, which may extend to Rs. 10 crore

• For every officer who is in default imprisonment up to 7 years and with a fine not less than Rs. 25 lakhs which may extend to Rs. 2 crores.

• Under Rule 21, on the company and every officer in default a fine which may extend up to Rs. 5,000 and where the contravention is a continuing one a fine of Rs. 500 for every day since the default.

FAQs on DPT-3:

• If a Company having only exempted deposits, whether such company required to file DPT-3?

As per provisions of Rule 16, even in the case of only exempted deposit companies are required to file DPT-3. As private limited companies are not allowed to accept deposit. Therefore, practically all the DPT-3 forms of private company shall be filed for exempted deposit.

• If a Company having only Loan from any one of followings, whether such company required to file e-form DPT-3?

-Loan from another Company,

-Loan from Bank or NBFC

-Loan from Shareholders

-No Loan but advance from customers

As per Rule 16, doesn’t matter from whom loan is outstanding in the book. If there is any loan or advance outstanding in the books as on 31.03.2021 then such company needs to file e-form DPT-3 for the same. Therefore, in all the above cases companies are required to file DPT-3.

• If Company has taken loan from shareholders. Whether such loan shall be considered as exempted deposit or deposit for the purpose of DPT-3?

As per provision of Companies Act, 2013 loan from shareholder shall be considered as Deposit. Therefore, whether private or public company has taken loan from shareholders, they have to select ‘Deposit’ as remote button and mention details of loan from shareholder.

• Whether it is mandatory to attached auditor certificate in DPT-3?

As per instruction Kit and circular issued by MCA, Auditor certificate is mandatory to attach in case company has clicked on remote button “Deposit” or “Deposit and particular not considered as deposit”. In other cases it is not required to attach auditor certificate with DPT-3.

 

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