DIR 3 KYC Due Date 2019: A Comprehensive Guide

Introduction

The Director Identification Number (DIN) is a unique identification number allotted to every director of a company in India by the Ministry of Corporate Affairs (MCA). As per the Companies (Amendment) Act, 2019, all directors are mandated to file DIR-3 KYC (Know Your Customer) with the MCA by 30th September 2019.

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Thus, to ensure compliance, it is paramount to understand the process, due date, and implications of filing DIR-3 KYC. This comprehensive guide will provide the necessary information and step-by-step guidance to help directors meet the deadline.

Importance of DIR-3 KYC

DIR-3 KYC is a crucial process that enables the MCA to validate the identity and address of company directors. This comprehensive KYC exercise plays a pivotal role in:

• Curbing fraudulent activities: DIR-3 KYC helps prevent individuals from using fictitious names or addresses to become directors.
• Improving corporate governance: It ensures that only genuine and verified individuals are appointed as directors.
• Facilitating business transactions: Lenders, investors, and other stakeholders can rely on the information provided in DIR-3 KYC for their due diligence processes.

DIR-3 KYC Due Date 2019

All existing directors are required to file DIR-3 KYC with the MCA by 30th September 2019. This deadline is non-extendable and failure to comply can result in penalties and consequences.

Consequences of Non-Compliance

Directors who fail to file DIR-3 KYC by the deadline will face the following consequences:

• Penalty: The MCA may impose a penalty of up to Rs. 50,000 on each non-compliant director.
• Disqualification: The MCA may disqualify directors who do not file DIR-3 KYC for a period of up to 5 years.
• Freezing of DIN: The MCA may freeze the DIN of directors who fail to comply. This can have a severe impact on the director's ability to serve on any company board.

How to File DIR-3 KYC

Step-by-Step Approach

1. Obtain DSC and DIN: Ensure that you have a valid Digital Signature Certificate (DSC) and Director Identification Number (DIN).
2. Prepare DIR-3 Form: Download the DIR-3 form from the MCA website and fill in the required personal and residential details, including supporting documents.
3. File DIR-3 KYC: Submit the completed DIR-3 form along with the requisite fees through the MCA portal.
4. Verification: The MCA will verify the submitted information and issue an acknowledgment number upon successful submission.

Effective Strategies for Compliance

• Start early: Avoid procrastination by starting the process well in advance to ensure timely submission.
• Seek professional help: Consider seeking assistance from a chartered accountant or company secretary for accurate and hassle-free filing.
• Keep documentation ready: Gather all necessary documents, such as proof of identity, address, and DSC, to avoid delays during the filing process.
• Stay updated: Regularly check the MCA website for any updates or clarifications regarding DIR-3 KYC requirements.

Common Mistakes to Avoid

• Incomplete form: Ensure that all sections of the DIR-3 form are filled out completely and accurately.
• Wrong information: Avoid providing incorrect or misleading information, as it can lead to penalties or rejections.
• Invalid documents: Make sure that the submitted documents are valid and meet the prescribed requirements.
• Missed attachments: Attach all required supporting documents to avoid delays in processing.

Interesting Stories

Story 1:

The Desperate Director

Mr. Agrawal, a busy businessman, completely forgot about the DIR-3 KYC deadline until the last moment. In a panic, he frantically tried to file online but faced technical difficulties. With only hours to spare, he rushed to a chartered accountant, who swiftly filed the form on his behalf, saving him from a potential penalty.

Lesson: Don't leave it to the last minute and seek professional help if needed.

Story 2:

The Confused Director

Mrs. Patel, a newly appointed director, was unsure about the DIR-3 KYC process. She accidentally submitted the form with incorrect address details. The MCA returned the form for correction, causing a delay in her compliance.

Lesson: Understand the filing requirements thoroughly and double-check your information before submitting.

Story 3:

The Digital Dilemma

Mr. Khan, a tech-savvy director, opted for e-signing his DIR-3 KYC form. However, his digital signature certificate expired just before the deadline. He had to scramble to obtain a new DSC, which added stress to his already busy schedule.

Lesson: Ensure that your DSC is valid and up to date before starting the filing process.

Useful Tables

Table 1: DIR-3 KYC Filing Instructions

Table 2: Required Documents for DIR-3 KYC

Table 3: DIR-3 KYC Filing Fees

FAQs

1. What is the last date for filing DIR-3 KYC?

The last date for filing DIR-3 KYC for existing directors is 30th September 2019.

2. What are the consequences of not filing DIR-3 KYC on time?

• Penalty up to Rs. 50,000
• Disqualification from directorship
• Freezing of DIN

3. How can I file DIR-3 KYC?

You can file DIR-3 KYC online through the MCA portal using a valid DSC.

4. What documents are required for DIR-3 KYC?

You will need documents such as Aadhaar Card, passport, voter ID card, utility bill, bank statement, or ration card.

5. What is the penalty for providing false or incorrect information in DIR-3 KYC?

The MCA can impose penalties and disqualify directors for providing false or incorrect information.

6. Can I file DIR-3 KYC for multiple directors at once?

Yes, you can file DIR-3 KYC for multiple directors simultaneously, but each director must have their own DSC.

Conclusion

The DIR-3 KYC filing is a mandatory compliance for all company directors in India. By understanding the importance, due date, process, and potential consequences, directors can ensure timely and accurate submission. With the provided strategies, tables, and FAQs, this comprehensive guide empowers directors with the necessary knowledge to meet the DIR 3 KYC due date 2019 and avoid any adverse actions by the Ministry of Corporate Affairs.