Mandatory KYC of directors for DINs and fine -MCA Notifications

Mandatory KYC of directors for DINs and fine-MCA Notifications

As per MCA advisory for updating its registry, MCA would be conducting KYC of all Directors of all companies annually through a new eform viz. DIR-3 KYC which shall be notified and deployed shortly.

Accordingly, every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status, would be mandatorily required to file form DIR-3 KYC on or before 31st August,2018. 

While filing the form,the Unique Personal Mobile Number and Personal Email ID would have to be mandatorily indicated and 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.

DIR-3 KYC will be available on MCA21 Company Forms Download page  w.e.f 14th July 2018

The MCA has issued the following two notifications in this regard.

(a) Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2018

As per the amendment, every Individual who has been allotted DIN as on March 31 of the Financial Year as per aforesaid rules, shall submit form DIR-3-KYC to the Central Government on or before April 30 of immediate next financial year.

The deadline to submit for DIR-3-KYC to individuals who have been allotted DIN as at March 31, 2018 have been fixed to or  before August 31, 2018.

(b) Companies (Registration Office and Fees) Third Amendment Rules, 2018

The Companies who file form DIR-3-KYC till August 31 2018 are exempted from paying any fees while companies filing form DIR-3-KYC on or after September 1, 2018 shall be liable to pay delayed fees of Rs. 5000/-