How to Update DIR-3 KYC Details of Directors

How to Update KYC Details of Directors: Indian and Foreign Directors on Boards of Indian Companies, to Remain on Board

Q.1: Why should you update KYC records of all directors?

Government is running a drive to get rid of shell companies, unprincipled and dishonest directors who are running benami companies. Where actual owners and directors are not on the records or books. These dishonest directors appoint any XYZ person like their household helps, drivers or gardeners. Mostly these people don’t know that they are the director of some company.

KYC exercise is undertaken that only genuine individuals are responsible for running the affairs of Companies. Rest all should not be allowed to run a Company.

Q.2: What is DIR-3C KYC form?

DIR-3 KYC FORM is mandatory for the directors who have been allotted DIN on or before 31^st March 2018. Also whose DIN is in “Approved status” would be mandatorily required to file DIR-3 KYC FORM on or before 31^st August 2018. So, if you are a director and your DIN was allotted before 31st March then please fill the FORM DIR-3C.

Q.3 Which type of directors is required to file DIR-3KYC form?

Two types of directors: –

1. Indian directors
2. Foreign directors

Q.4: Type of digital signature certificate (DSC) used for filing form?

While filing DIR-3 KYC form, all stakeholders are requested to use PAN-based DSC in case of Indian Nationals i.e., DSC should contain PAN as specified in the form.
In respect of Foreign Nationals, applicant’s name in DSC would be matched with his/her name entered while filing the form (DIR-3 KYC).
In case the PAN /Name in DSC does not match with PAN/Name entered in the form, they would be required to get a DSC with PAN/Name as specified in the form.

Q.5: Who will certify DIR-3 KYC form? 

The government of India gives authority to certify details of KYC and other documents to Company Secretary in Practice and Chartered Accountant in practice, Cost, and Management Accountant. The requirement for a certificate from CA/ CS/CMA will also ensure that director qualifications are verified.

Q.6: Which documents are required to file DIR-3 KYC form?

In Case Indian National (Indian Director): –

1. Proof of Identity: – Self-attested PAN CARD
2. Proof of Address: – Self-attested Aadhar Card
3. Personal Mobile Number and E-mail ID of directors for OTP Verification
4. Digital Signature of director (Registered on MCA Portal)

 In Case Of Foreign Nationals (Foreign Directors In Indian Company)   

1. In case of Foreign Nationals, the passport is mandatory.
2. Mobile No. and E-mail ID shall be of director’s himself/ herself only and will be verified by OTP.
3. The E-form DIR-3 KYC shall be duly certified by a Practicing Chartered Accountant, Practicing Company Secretary or Practicing Cost Accountant.

In case of Foreign Nationals, documents need to be attested by authority prescribed.

Q.7: Fee for filing DIR -3 KYC form?

1. Till 31^st August or any other extended date issued by the ministry – No Fees
2. Fee payable in delayed cases i.e. after 31st August 2018 is Rs. 5000/‐.

Q-8: Consequence for not filing e-form DIR-3 KYC?

1. After expiry of the due date by which the KYC form is to be filed, the MCA21 system will mark all approved DINs (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason as ‘Non-filing of DIR-3 KYC’. However, the de-activated DIN shall be Re-activated only after filing of E-form DIR-3 KYC along with prescribed fees as prescribed under Companies (Registration Offices and Fees) Rules, 2014
2. Also late fee penalty of Rs. 5000 shall be levied after the expiry of 31^st August 2018.

So, don’t ignore the form and file it before 31^st August 2018.

MEGHA AGGARWAL

COMPANY SECRETARY 

NEW DELHI