Comprehensive Guide to DIR e-KYC in India (Updated for FY 2024-25 & FY 2025-26)

1. Introduction to DIR e-KYC

Any individual intending to become a Director or Partner in a company or LLP in India must mandatorily obtain a Director Identification Number (DIN).

The DIR e-KYC (Know Your Customer) is an annual compliance process introduced by the Ministry of Corporate Affairs (MCA) to ensure that the details of directors are accurate and up-to-date. Failure to complete DIR e-KYC within the specified deadline leads to the deactivation of the DIN and penalties.

2. Who Needs to File DIR e-KYC?

2.1 Mandatory Filers

• Individuals holding a valid DIN as of 31st March of the financial year.
• Any individual with an active DIN who has filed DIR e-KYC previously.

2.2 Exemptions

• Individuals whose DIN is deactivated due to non-compliance or resignation.

3. Types of DIR e-KYC Forms

4. Documents Required for DIR e-KYC

4.1 Essential Documents

• PAN Card (Mandatory for Indian Nationals)
• Aadhaar Card (Linked with Mobile Number for OTP Verification)
• Passport (Mandatory for Foreign Nationals)
• Address Proof (Bank Statement, Electricity Bill, etc.)
• Email ID & Mobile Number (For OTP Verification)

4.2 Additional Documents (if applicable)

• Proof of Change in Details (if any changes have occurred since the last KYC filing)

5. Step-by-Step Process to File DIR e-KYC

5.1 Filing DIR-3 KYC (First-Time Filers)

1. Visit the MCA Portal (www.mca.gov.in)
2. Download Form DIR-3 KYC
3. Fill in Required Details (Name, DIN, PAN, Aadhaar, etc.)
4. Attach Supporting Documents
5. Authenticate with Digital Signature Certificate (DSC)
6. Upload the Form on MCA Portal
7. Pay Fees (if applicable)
8. Receive SRN and Acknowledgment

5.2 Filing DIR-3 KYC Web (For Existing Directors)

1. Login to MCA Portal
2. Select ‘DIR-3 KYC Web’
3. Verify Auto-Filled Details
4. Authenticate via OTP (Aadhaar-Linked Mobile & Email)
5. Submit the Form
6. Receive Acknowledgment

6. Due Date & Late Fees

6.1 Filing Deadline

• The due date for DIR e-KYC for FY 2024-25 is 30th September 2024.
• The due date for DIR e-KYC for FY 2025-26 is 30th September 2025.

6.2 Late Fees & Penalty

• If filed after the due date, a late penalty of INR 5,000 is applicable.
• The DIN will be marked as ‘Deactivated due to non-filing’, restricting the individual from acting as a director.

7. Consequences of Non-Filing of DIR e-KYC

• Deactivation of DIN (Cannot sign documents as a director)
• Monetary Penalties
• Legal Consequences under the Companies Act, 2013

8. Key Updates for FY 2024-25 & FY 2025-26 related to DIR e-KYC

• Mandatory Aadhaar-based authentication for faster verification.
• Automated MCA alerts for directors regarding e-KYC filing deadlines.
• Penalty Reduction Scheme may be introduced for delayed filings (Subject to MCA notification).

9. Case Study: Impact of Non-Filing DIR e-KYC

Case Study: A Director’s Non-Compliance

Mr. ABC, a director in an IT company, missed the 30th September 2023 deadline for DIR e-KYC. As a result:

• His DIN was deactivated, preventing him from executing board resolutions.
• The company faced compliance issues, delaying financial filings.
• He had to pay a penalty of INR 5,000 before reactivating his DIN.

This case highlights the importance of timely compliance to avoid operational disruptions.

By following this guide, directors can ensure timely compliance with DIR e-KYC regulations, avoid penalties, and maintain their eligibility to serve on company boards.

For professional assistance, reach out to us on email: info@returnfilings.com or on whatsapp: https://wa.me/919910123091 to ensure all statutory obligations are met on time.

10. Additional Resources

For further reading, explore the following topics:

• Addition of Director: Eligibility, Documentation, and Compliance Process.
• Director Removal or Resignation: Legal Process, Documentation, and Compliance.
• Director Identification Number (DIN): Eligibility, Application Process, and Compliance.
• Removal of Director Disqualification: Legal Process, Remedies, and Compliance.

Frequently Asked Questions (FAQs) related to DIR e-KYC

General DIR e-KYC Information

1.       What is DIR e-KYC?

DIR e-KYC is a process mandated by the Ministry of Corporate Affairs (MCA) for directors of companies to verify their identity and ensure the accuracy of their information in the MCA database. It involves linking the director’s Aadhaar with their Director Identification Number (DIN).  

2.       Why is DIR e-KYC required?

DIR e-KYC is required to: Enhance transparency and accountability in corporate governance. Prevent fraudulent activities and misuse of DINs. Ensure the accuracy and updation of director information.

3.       Who is required to do DIR e-KYC?

All individuals holding a DIN are required to complete DIR e-KYC, regardless of whether they are currently serving as a director in any company.

4.       What is the process for DIR e-KYC?

The DIR e-KYC process typically involves: Visiting the MCA portal. Downloading the DIR-3 KYC form. Filling in the required details, including DIN and Aadhaar number. Uploading the filled form and digitally signing it using the director’s DSC (Digital Signature Certificate) or Aadhaar-based OTP.  

5.       Is DSC mandatory for DIR e-KYC?

While DSC can be used, it’s not strictly mandatory. Aadhaar-based OTP authentication is also a valid method for DIR e-KYC.

DIR e-KYC Process and Requirements

6.       What documents are required for DIR e-KYC?

The primary document required is the director’s Aadhaar card. The DIN is also essential, as it’s the identifier being linked.

7.       What if my Aadhaar is not linked to my mobile number?

You will need to link your Aadhaar with a mobile number to receive the OTP for authentication. This can be done at an Aadhaar enrollment center.  

8.       What if I have changed my mobile number linked to Aadhaar?

You will need to update your mobile number linked to Aadhaar at an Aadhaar enrollment center before proceeding with DIR e-KYC.  

9.       What if my Aadhaar details do not match my DIN details?

The details (name, date of birth, etc.) in your Aadhaar and DIN must match exactly. If there are discrepancies, you will need to rectify them with the respective authorities (UIDAI for Aadhaar and MCA for DIN).

10.   What if I do not have an Aadhaar?

Aadhaar is generally required for DIR e-KYC. If you are exempt from Aadhaar under specific circumstances, you should consult with a professional for guidance on alternative KYC processes.  

11.   How often is DIR e-KYC required?

DIR e-KYC is typically an annual requirement. The MCA may announce specific timelines for completion.  

Troubleshooting and Other Considerations

12.   What if I encounter errors during the DIR e-KYC process?

Check the MCA portal for troubleshooting guides and FAQs. You can also contact the MCA helpdesk for assistance.

13.   What if I forget my DIN?

You can retrieve your DIN from the MCA portal by providing the necessary details.

14.   What is the fee for DIR e-KYC?

Currently, there is no fee for DIR e-KYC.

15.   What happens if I fail to complete DIR e-KYC?

Failure to complete DIR e-KYC may lead to deactivation of the DIN. A deactivated DIN can be reactivated after completing the e-KYC process and paying the prescribed fees.  

Others generally asked questions related to DIR e-KYC

16.   How do I download the DIR-3 KYC form?

The DIR-3 KYC form can be downloaded from the MCA portal.  

17.   What is the last date for DIR e-KYC?

The MCA announces the due date for DIR e-KYC. Check the MCA website for the latest updates.

18.   What is the process for reactivating a deactivated DIN?

You need to complete the DIR e-KYC process and pay the required fees.

19.   What are the benefits of linking Aadhaar with DIN?

It helps to verify the identity of directors and improve the accuracy of director information.  

20.   How can I update my details in the MCA database?

You can update your details through the appropriate forms on the MCA portal.  

21.   What is the role of a Digital Signature Certificate (DSC) in DIR e-KYC?

DSC can be used for authentication, though Aadhaar OTP is also an option.

22.   What should I do if my DSC is expired?

You will need to renew your DSC from a certifying authority.  

23.   How can I contact the MCA helpdesk?

Contact details are available on the MCA website.

24.   What are the common errors encountered during DIR e-KYC?

Common errors relate to mismatch of details, technical issues with the portal, or problems with Aadhaar authentication.

25.   Is DIR e-KYC mandatory for all directors?

Yes, it is mandatory for all individuals holding a DIN.