ANNUAL KYC OF ALL THE DIRECTORS OF ALL COMPANIES

NEW LAW UPDATE

ATTENTION ALL DIRECTORS

ANNUAL KYC OF ALL THE DIRECTORS OF ALL COMPANIES

In order to update its registry, Ministry of Corporate Affairs would be conducting KYC of all Directors of all companies annually through a new e-form viz. DIR-3 KYC.

Accordingly, every Director who has been allotted DIN up to 31stMarch 2018 and whose DIN is in ‘Approved’ status, must mandatorily file form DIR-3 KYC by 31st August 2018. While filing the form, the Unique Personal Mobile Number and Personal Email ID is  mandatorily indicated and it would be duly verified by One Time Password (OTP). The form should be filed by every Director using his own DSC and should be duly certified by a practicing professional (CA/ CS/ CMA). Filing of DIR-3 KYC would be mandatory for Disqualified Directors also.

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’. After the due date, filing of DIR-3 KYC in respect of such deactivated DINs shall be allowed upon payment of a specified fee only, without prejudice to any other action that may be taken.

 

FAQs on Directors KYC

  1. Who must File DIR-3 KYC?

Every Director who has been allotted DIN on or before 31st March 2018 and whose DIN status is ‘Approved’.

  1. What is due date of DIR-3 KYC?

Due date of filing of DIR-3KYC is on or before 31st August 2018.

  1. Mandatory Information DIR-3 KYC?
  • Unique Personal Mobile Number.
  • Personal Email ID.
  • OTP on Email ID and Mobile No.
  1. Certification of DIR-3 KYC?
  • DSC of Director.
  • DSC of practicing professional (CA/CS/CMA).
  1. Whether Disqualified Directors required filing DIR-3 KYC?

Yes, Filing of DIR-3 KYC would be mandatory for Disqualified Directors also.

  1. Effect of director fails to file DIR-3 KYC?

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’.

  1. Consequences of filing of DIR-3 KYC after due date?

After the due date filing of DIR-3 KYC in respect of such deactivated DINs shall be allowed upon payment of a specified fee only, without prejudice to any other action that may be taken.

  1. Availability of Form?

As per recent MCA notification the form DIR-3 will be available on MCA21 Company Form on 14th July 2018.

  1. Penalty and Fees

MCA has amended Appointment and Qualification of Director Rules 2014. Rule 12 A specifies that all the directors will have to mandatorily submit the e-Form DIR-3 before or on the specified date. Directors who are unable to submit the form will be levied a penalty by disqualifying the DIN of the director which will only be allowed after payment of INR 5000 as a late fee.

Note: For the current financial (2018-2019), no fee shall be chargeable till the 31stAugust 2018 and fee of INR 5,000 shall be payable on or after the 1st September 2018″

Prachi Sharma

(Company Secretary and Corporate Counsel)

(Ricky Chopra International Counsels)

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