What you need to know about DIR-3 KYC

The objective of introducing this process by the Ministry of Corporate Affairs by way of electronic form is to eradicate dummy directors and ensure the particulars of directors in the database are the latest information. Below are 10 important points to know about Director KYC updation and the process to carry out the KYC updation.  

  1. Let’s understand the importance of knowing what Director KYC is and why it is necessary to maintain DIR-3KYC for all the directors. Directors must maintain up to date know your customer (KYC) details, because nowadays it’s very crucial to manage all the details who are involved in transactions.
  2. There are two ways of updating KYC in MCA portal. Firstly, the Web KYC, and secondly Form Based KYC.
    • First time KYC updation and subsequent changes in the records of Directors must be done through Form-Based KYC process, wherein documentary proofs must be submitted along with the form.
    • A second and subsequent KYC updation where no changes in the records of the director will be a simplified form-based KYC process.
  3. All the individuals whose DIN number is allocated should file DIR-3KYC including disqualified directors.
  4. In the case of non-residents Directors, the documents must be notarized or apostilled in their country of residence.
  5. DUE DATE FOR FILING: As per companies act 2013, all company directors must follow up the due date of 30th September for every financial year.
  6. THINGS TO KNOW:
  • DIR-3KYC form was introduced in 2018.
  • Web KYC is only for OTP verification process.

    These above two ways of filing DIR-3KYC form and Web DIR-3KYC processes are used for updating of directors of companies under the companies act 2013.  
  1. All persons who have DIN allotted on or before 31st March 2023 are liable to complete the KYC process.
  • While filing for DIR-3KYC process, it is required for a director to provide their personal details.
  • Directors Name
  • Father Name
  • Date of birth
  • Address (Resident of India)
  • Pan card number
  • Aadhar number
  • Voter’s identity number
  • Passport Number
  • Driving license Number
  • Mobile number and email id
  • Latest month bank statement or utility bill [Address Proof]

In case of Foreign Directors

  • Identity Proof – Valid Passport
  • Address Proof – Government ID with valid address

Both the documents must be apostilled and notarized in the country of residence.    

7. PROCEDURE TO FOLLOW UP (DIR-3KYC FORM)

STEP-1: All directors must have a valid Digital Signature Certificate (DSC) and registered    in MCA portal for affixing the same in Form based DIR-3 KYC.

STEP-2: Access to Ministry of Corporate affairs (MCA) portal and then Login to http://www.mca.gov.in using valid credentials. V3 account creation for each director is required for form-based KYC.

STEP-3: Select MCA services, e-filing and then download the company forms.

STEP-4: The applicant can choose the header “DIN related filings”, access further to DIR-3KYC form.

STEP-5: Once updating all relevant personal details in e-form the applicant must cross-verify their details in the e-form and if any error found, the rectification must be made for the same.

STEP-6: OTP verification is done through email and mobile number; this step is very important in the process of DIR-3KYC.

  • Enter the mobile number in DIR-3KYC form.
  • After entering mobile number, the Ministry of Corporate Affairs portal will generate an OTP (one time password)
  • Once OTP is generated into the mobile number, one must enter the OTP within the stipulated time given. If missed out, entered wrong or did not receive any OTP number on time; click on resend OTP option.
  • After entering the OTP number, the OTP will be verified successfully.
  • NOTE: if you fail to follow this step, then it may result in the rejection of DIR-3KYC form.

STEP-7: After filling in the e-form, signed accordingly and OTP verification done. The directors must upload it on MCA portal and must submit the form.

  • No payment fees are charged on filing DIR-3KYC.
  • If fail to file on or before the due date of 30th September, penalty fees will be charged, the sum amount is Rs.5000 to paid.

STEP-8: After filing; SRN will be generated on the submission of e-form, this SRN will be useful for any further related status to be checked.            

 STEP-9: Acknowledgement is generated.

Disclaimer: The information shared is for reference only, reach out to your professional advisor for more details

In case of any queries or clarifications, please reach out to elangovan@enaca.in

, ,
, , , , , , , ,