KYC of Directors (Form DIR 3KYC)
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Overview
Applicability
Implications
Filing Of Form CIR-3 KYC
The Ministry of Corporate Affairs (MCA) mandates the annual filing of Form DIR-3 KYC/KYC Web as part of its efforts to verify the identity and details of company directors. This requirement, enshrined under Section 153 of the Companies Act, 2013 and Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, ensures that the registry remains a reliable repository of information, mitigating risks of fraud and enhancing stakeholder trust.
Form DIR-3 KYC serves as an e-verification mechanism for Directors’ Identification Numbers (DINs). Its primary objective is to authenticate the personal particulars of directors, including contact details and identification proofs, thereby keeping the MCA’s database current.
This annual exercise is crucial for all individuals holding a DIN, including those in designated partner roles within Limited Liability Partnerships (LLPs), to affirm their ongoing association with registered Companies/LLPs.
Applicability and Timeline of Filing:
Applicability of Filing Form DIR-3 KYC/KYC Web extends to every director whose DIN was allotted on or before March 31 of the preceding financial year. The form is required to be filed by 30th September every year. Even disqualified directors must participate, underscoring the form’s role in comprehensive regulatory oversight.
The DIR-3 KYC process has been streamlined into two variants to accommodate varying needs: the standard DIR-3 KYC for initial filings or updates, and the web-based DIR-3 KYC (Web) for routine annual submissions where no changes in directors’ KYC credentials are needed.
Implications of Non-Compliance
Failure to file the form within the stipulated timeline results in the automatic deactivation of the DIN, rendering the director ineligible for new appointments or signatory roles until rectification. Reactivation requires filing the form and payment of a penalty of ₹5,000.
Frequently Asked Questions
How do I start a business in India as a foreign company?
Foreign companies can set up a liaison office, branch office, or wholly-owned subsidiary in India. Corpsecure assists with RBI, FEMA, and ROC compliances for a smooth entry.
What is the cost of company registration in India?
The cost depends on the type of company (Pvt Ltd, LLP, OPC, etc.) and government fees. On average, registration can start from ₹7,999 onwards with professional assistance.
How long does it take to register a company in India?
With proper documents, company registration can take 7–15 working days. Corpsecure ensures faster turnaround by managing documentation and compliance.