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.
• 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.
• Individuals whose DIN is deactivated due to non-compliance or resignation.
| Form Name | Applicability |
|---|---|
| DIR-3 KYC | For first-time filers (filed with supporting documents) |
| DIR-3 KYC Web | For individuals who have filed DIR-3 KYC previously and have no updates to their details |
• 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)
• Proof of Change in Details (if any changes have occurred since the last KYC filing)
a. Visit the MCA Portal (www.mca.gov.in)
b. Download Form DIR-3 KYC
c. Fill in Required Details (Name, DIN, PAN, Aadhaar, etc.)
d. Attach Supporting Documents
e. Authenticate with Digital Signature Certificate (DSC)
f. Upload the Form on MCA Portal
g. Pay Fees (if applicable)
h. Receive SRN and Acknowledgment
a. Login to MCA Portal
b. Select ‘DIR-3 KYC Web’
c. Verify Auto-Filled Details
d. Authenticate via OTP (Aadhaar-Linked Mobile & Email)
e. Submit the Form
f. Receive Acknowledgment
• 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.
• 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.
• Deactivation of DIN (Cannot sign documents as a director)
• Monetary Penalties
• Legal Consequences under the Companies Act, 2013
• 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).
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.
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).
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.
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.
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.
While DSC can be used, it’s not strictly mandatory. Aadhaar-based OTP authentication is also a valid method 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.
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.
You will need to update your mobile number linked to Aadhaar at an Aadhaar enrollment center before proceeding with DIR e-KYC.
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).
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.
DIR e-KYC is typically an annual requirement. The MCA may announce specific timelines for completion.
Check the MCA portal for troubleshooting guides and FAQs. You can also contact the MCA helpdesk for assistance.
You can retrieve your DIN from the MCA portal by providing the necessary details.
Currently, there is no fee for 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.
The DIR-3 KYC form can be downloaded from the MCA portal.
The MCA announces the due date for DIR e-KYC. Check the MCA website for the latest updates.
You need to complete the DIR e-KYC process and pay the required fees.
It helps to verify the identity of directors and improve the accuracy of director information.
You can update your details through the appropriate forms on the MCA portal.
DSC can be used for authentication, though Aadhaar OTP is also an option.
You will need to renew your DSC from a certifying authority.
Contact details are available on the MCA website.
Common errors relate to mismatch of details, technical issues with the portal, or problems with Aadhaar authentication.
Yes, it is mandatory for all individuals holding a DIN.
