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Understand the importance of DIN KYC for company directors. Learn how to complete the KYC process online, the necessary documents, and avoid penalties for non-compliance.
5 May 2024
Afinthrive Advisory
DIN KYC (Director Identification Number KYC) is a process introduced by the Ministry of Corporate Affairs (MCA) for directors of Indian companies. As part of an ongoing effort to strengthen corporate governance and ensure accountability, MCA has mandated that all directors of Indian companies must complete the KYC process for their DIN. This process ensures that the identity of the directors is verified and maintained up-to-date in the MCA database.
The DIN KYC process is crucial for enhancing transparency in the corporate sector and prevents the misuse of director identities. Non-compliance with the DIN KYC requirements may lead to the deactivation of the DIN, which can have significant implications for the director and the company.
Directors who have been allotted a DIN, whether they are active or inactive, must complete this process annually, starting from the financial year 2018-19, as per the latest MCA guidelines. This KYC requirement also extends to foreign directors, highlighting the importance of accurate and updated records.
Why is DIN KYC Important?
The process is simple and can be completed online. Directors are required to submit their KYC details, including personal information, documents like Aadhaar, and other necessary details via the MCA portal.
Once completed, the status of the DIN will be updated, confirming the completion of the KYC process. Failure to complete the DIN KYC can result in the suspension or deactivation of the DIN, making the director unable to engage in company-related activities such as signing financial documents, filing returns, or acting as a director in any Indian company.
How Afinthrive Advisory Assists:
Afinthrive Advisory can help you complete your DIN KYC with ease and ensure that your records are up-to-date. Our experts will guide you through the process, assist with document verification, and help you avoid any issues related to non-compliance. We ensure that your DIN remains active, so you can continue to perform your duties as a director without interruptions.
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A guide to completing DIN KYC and staying compliant with the Ministry of Corporate Affairs
Mandatory for directors to ensure their DIN remains active and valid for filing documents with the Registrar of Companies (RoC)
Why is DIN KYC Important?
All directors with a Director Identification Number (DIN) as of 31st March must complete their KYC process, including new and existing directors.
Who Needs to Complete DIN KYC?
Log in to the MCA portal, verify your details, upload a photograph and relevant documents, and complete the KYC process through e-signature.
How to Complete DIN KYC
A valid PAN card, Aadhaar card, mobile number, and email ID must be provided for the KYC process.
Documents Required
Directors who fail to complete DIN KYC by the deadline face the risk of their DIN becoming deactivated, leading to disqualification from holding directorship in any company.
Penalties for Non-Compliance
DIN KYC needs to be completed by 30th September each year to avoid penalties and ensure continuous validity of your DIN.
Timeline for Completion
Complete Your Director Identification Number KYC for Uninterrupted Operations
Director Identification Number (DIN) KYC is a mandatory process where directors of a company validate their identity and address with the Ministry of Corporate Affairs (MCA) to ensure compliance with company law regulations.
Every director holding a DIN must complete the KYC process. If the director has not completed KYC, their DIN may become deactivated, preventing them from performing their duties in the company, such as signing financial statements or filing returns.
• Avoid Deactivation: Non-compliance can lead to DIN being deactivated. • Ensure Business Continuity: Without an active DIN, a director cannot legally represent the company. • Legal Requirement: It's mandated by the MCA to ensure that company directors are identifiable.
1. Log into the MCA portal using your DIN and registered credentials. 2. Fill in the KYC form with personal details (name, address, contact information, etc.). 3. Upload the required documents such as Aadhar card, passport, or utility bill. 4. E-sign the form using your DSC (Digital Signature Certificate). 5. Submit the form for verification.
• Aadhar card or passport for identity verification. • Bank statement or utility bill (less than 2 months old) for address proof. • Recent passport-size photograph. • Digital Signature Certificate (DSC) for electronic submission.
Once you submit the KYC details, the MCA verifies your information. If everything is in order, your DIN will remain active. If there are discrepancies or missing information, you may be asked to resubmit or correct the details.
If DIN KYC is not completed, the director's DIN will be deactivated. This means the director cannot sign legal documents, file tax returns, or undertake any official capacity in the company until the KYC process is completed.
DIN KYC must be updated annually. Directors must complete this process by the due date to avoid deactivation. Keep track of the deadline and complete the KYC well in advance to prevent any disruptions in your role as a director.
Here is the check list of documents required.
Get Answers to your most asked questions.
DIN KYC is a mandatory process for directors of companies, where they need to update their personal details associated with their Director Identification Number (DIN) with the Ministry of Corporate Affairs (MCA). This ensures that the details are accurate and up to date in the official records.
All directors with a valid DIN must file their KYC (Know Your Customer) details with the MCA. This applies to directors of both private and public companies, including those who are non-resident Indians (NRIs).
To file DIN KYC, follow these steps: 1. Visit the MCA portal and log in to your account. 2. Navigate to the 'DIR-3 KYC' section. 3. Enter your DIN and personal details. 4. Upload the required documents (e.g., photograph, identity proof). 5. Submit the form and verify your details using a Digital Signature Certificate (DSC).
Filing DIN KYC is free of charge if submitted on or before the specified deadline. However, after the due date, there may be a penalty imposed for delayed submission. It’s important to complete the process within the timeline set by the MCA.
If you fail to file DIN KYC, your DIN will be marked as 'deactivated' by the Ministry of Corporate Affairs. A deactivated DIN means you cannot act as a director in any company until the KYC process is completed and the DIN is reactivated.
Yes, you can update your DIN KYC details if there are any changes in your information, such as a change of address or name. You need to file a fresh DIN KYC form with the updated details and supporting documents.
