MCA Director KYC: Mandatory for Every Director/Designated Partner
As per the Companies Act 2013, every company director having DIN allotted before 31st March 2023 must complete the MCA Director KYC. This process is known as the MCA Director KYC or DIR-3 KYC process. The DIR-3 KYC is a crucial compliance requirement that ensures the authenticity and credibility of the company’s directors. Non – Filing of Director KYC will attract penalty at INR 5000/-
DIR-3 KYC
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Mandatory Compliance for all those whose DIN allotted Before 31st March 2022
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MCA Director KYC or DIR-3 KYC - Introduction
Director KYC or DIR-3 KYC refers to the process of verifying the identity of a company director in India. It is a mandatory requirement for all directors of companies registered with the Ministry of Corporate Affairs (MCA) to complete their KYC process through the DIR-3 KYC form.
The DIR-3 KYC form is filed annually by the director to update their personal and professional information with the MCA. This includes details such as their name, date of birth, PAN number, Aadhaar number, passport number (if applicable), and contact information.
The purpose of the DIR-3 KYC process is to ensure that the information of the company’s directors is up-to-date and accurate, which helps to prevent fraudulent activities and ensures compliance with the regulatory requirements of the MCA.
What is MCA Director KYC or DIR3 KYC?
MCA Director KYC stands for Ministry of Corporate Affairs (MCA) Director Know Your Customer (KYC). It is a process of verifying the identity and address of all directors associated with a company. The MCA introduced this process in 2018 to ensure transparency and prevent fraud in companies.
Why is MCA Director KYC important?
MCA Director KYC is important because it helps to ensure the security and credibility of companies. It helps to prevent fraudulent activities such as money laundering, terrorist financing, and other illegal activities that may be associated with companies. By conducting KYC checks, the MCA can verify the identity of the directors associated with the company and ensure that they are not involved in any illegal activities.
Additionally, MCA Director KYC helps to maintain the accuracy of the MCA database. The database contains important information about all the companies registered in India, and it is important to ensure that this information is accurate and up-to-date. By conducting regular KYC checks, the MCA can ensure that the information in the database is accurate and reliable. Non Filing of MCA Director KYC can result into penalty of Rs.5000/- .
How to comply with MCA Director KYC?
Complying with MCA Director KYC is a simple process that can be completed online. The following are the steps involved in complying with MCA Director KYC:
- Visit the MCA portal: The first step in complying with MCA Director KYC is to visit the MCA portal (www.mca.gov.in).
- Login/Register: If you are already registered with the MCA portal, you can log in using your credentials. If not, you can register as a new user.
- Enter DIN: Once you are logged in, you need to enter the Director Identification Number (DIN) of the director you want to verify.
- Verify OTP: After entering the DIN, you will receive an OTP on your registered mobile number and email address. You need to enter the OTP to proceed.
- Provide details: Once the OTP is verified, you need to provide the personal details and address of the director.
- Upload documents: You also need to upload scanned copies of the director’s PAN card, Aadhaar card, and passport size photograph.
- Submit: After providing all the necessary details and uploading the documents, you need to submit the form.
Director KYC due date
Director KYC due date is an essential compliance requirement for companies in India. The Ministry of Corporate Affairs (MCA) has made it mandatory for all companies to file Director KYC forms every year. The due date for Director KYC filing is 30th September of every year.
It is crucial to comply with the Director KYC due date to avoid penalties and legal issues. Non-compliance with the due date can result in the disqualification of the director, and the company may also face penalties and fines.
Penalty on Non - Filing of DIR-3 KYC
For FY 2022-23, in cases where a director who is supposed to file the e-Form does not file it by due date, the department will mark the DIN of such director as ‘Deactivated due to Non-filing of DIR-3 KYC’. If the director wishes to re-activate his DIN in future by filing the missed out eForm DIR-3 KYC, he can do so after paying a late fee of Rs 5,000. This form needs to be filed annually by the directors.
The filing of director KYC in DIR-3 (KYC) already begun on 1st April 2022 and the last of filing the same is 30th September 2022. If not filed within its due date then it would attract an additional fee or fine of Rs 5000/- for each defaulting partner
For filing the directors KYC, you should have following information
- Unique Personal Mobile Number
- Personal Email ID.
- OTP on Email ID and Mobile No.
Yes, Filing of DIR-3 KYC would be mandatory for Disqualified Directors also
MCA21 system will mark all approved DINs (allotted on or before 31st March 2022) against which DIR-3 KYC form has not been filed upto 30th September 2022 as ‘Deactivated’ with reason as ‘Non-filing of DIR-3 KYC’.
After the due date filing of DIR-3 KYC is over, the DIN is marked as deactivated. For such inactive DIN directors KYC can be filed after payment of late filing fee of Rs. Rs. 5,000/- only, without prejudice to any other action that may be taken.
Every Director who has been allotted DIN as on or before 31st march 2022, must submit e-form DIR-3KYC with the central government.
Yes, even a person is not holding directorship in any Company, such a person is also required to file DIR-3 KYC every financial year within its due date.
Yes It is mandatory to affix DSC of Director on his e-form DIR-3 KYC.