Introduction

DIR-3 KYC filing is a mandatory compliance requirement for Directors of Private Limited Companies in India. The Ministry of Corporate Affairs (MCA) introduced this process to maintain updated records of directors and prevent fraudulent activities. Every director who has been allotted a Director Identification Number (DIN) must file the DIR-3 KYC form annually to keep their DIN active.

Who Needs to File DIR-3 KYC?

Any individual holding a DIN (Director Identification Number) as of 31st March of a financial year must file the DIR-3 KYC form before the due date. This applies to directors of:

• Private Limited Companies (Pvt Ltd)

• Public Limited Companies

• One Person Companies (OPC)

• Limited Liability Partnerships (LLPs), if they hold a DIN

Types of DIR-3 KYC Filing

There are two types of DIR-3 KYC filing based on the mode of submission:

1. DIR-3 KYC Form (For First-Time or Detail Changes)

• Required for directors filing KYC for the first time or if there are any changes in personal details (e.g., address, email, phone number).

• Must be filed using the DIR-3 KYC eForm.

2. DIR-3 KYC Web-Based Verification

• Applicable to directors who have previously filed DIR-3 KYC and have no changes in their details.

• A simplified online verification process using OTP-based authentication.

Step-by-Step Process for DIR-3 KYC Filing

A. Filing DIR-3 KYC Form (eForm Method)

1. Download the DIR-3 KYC eForm from the MCA portal.

2. Fill in the required details, including DIN, name, address, nationality, PAN, Aadhaar, and email.

3. Verify mobile and email using OTP authentication.

4. Attach supporting documents (PAN, Aadhaar, passport if applicable).

5. Get the form digitally signed by a practicing Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant.

6. Submit the form on the MCA portal.

7. MCA will process the application, and a confirmation email will be sent upon successful filing.

B. Web-Based DIR-3 KYC Verification (For Previously Filed Directors)

1. Visit the MCA DIR-3 KYC Web Service.

2. Enter DIN and mobile/email ID.

3. Authenticate using OTP verification.

4. Submit the form to complete the KYC process.

Due Date for DIR-3 KYC Filing

The due date for DIR-3 KYC filing is 30th September of every financial year.

Late Fees & Penalties for Non-Filing

Failure to file DIR-3 KYC before the due date results in DIN deactivation and financial penalties.

Consequences of Late Filing

1. Penalty of INR 5,000 for delayed submission after 30th September.

2. DIN becomes deactivated with the status marked as ‘Deactivated due to Non-Filing’.

3. Reactivation of DIN is possible only after payment of the penalty and filing the overdue KYC form.

4. Directors with deactivated DINs cannot sign documents or act as directors in any company until compliance is completed.

Documents Required for DIR-3 KYC

• PAN Card (Mandatory for Indian citizens)

• Aadhaar Card (For Indian residents)

• Passport (Mandatory for foreign nationals)

• Email & Mobile Number (For OTP verification)

• Address Proof (Bank statement, utility bill, etc., not older than two months)

• Digital Signature (DSC) of the director

Key Takeaways

• DIR-3 KYC is mandatory for all directors with an active DIN.

• Due date: 30th September of every year.

• Types: eForm for first-time filing or updates; web-based for repeat filing.

• Penalty: INR 5,000 for late filing.

• Non-filing leads to DIN deactivation, restricting directors from acting in their official capacity.

Conclusion

DIR-3 KYC compliance is crucial for directors to maintain an active DIN and avoid penalties. Companies should ensure that their directors complete the process before the deadline to prevent legal and financial repercussions. For seamless compliance, businesses can seek professional assistance from Chartered Accountants or Company Secretaries.