DIR-3 Form: What It Is and Its Uses

DIR-3 is a form mandated by the Ministry of Corporate Affairs (MCA) in India for purposes related to a Director Identification Number (DIN). This 8-digit unique ID is assigned to individuals intending to serve as directors in Indian companies.

What Is DIR-3 Used For?

1. Applying for a New DIN:
   • Individuals aspiring to become company directors must submit DIR-3 to obtain their DIN.
2. Updating Existing DIN Details:
   • Directors can use DIR-3 to update personal information such as their address, phone number, or email ID.
3. Annual KYC Filing:
   • All directors holding an active DIN must file DIR-3 KYC annually to verify and update their KYC details.
   • Deadline: September 30th of the following financial year.

Benefits of Filing DIR-3

1. Transparency and Accountability:
   • Enables tracking of directors across companies, ensuring better corporate governance.
2. Streamlined KYC Verification:
   • Simplifies the process for directors to update and verify their personal information.
3. Mandatory Compliance:
   • Ensures directors fulfill legal requirements, avoiding complications with their directorships.
4. Prevention of Future Issues:
   • Filing the form on time helps avoid disqualification or penalties related to non-compliance.

Consequences of Non-Compliance

1. DIN Deactivation:
   • Failing to file DIR-3 KYC results in deactivation of the DIN, preventing its use for any directorial functions.
2. Late Fees:
   • A late fee of ₹5,000 is imposed to reactivate the DIN after the KYC deadline.

Quick Summary Table

By adhering to DIR-3 filing requirements, directors can maintain their compliance status, contribute to robust governance practices, and avoid legal or financial complications.