DIR-3 KYC Due Date 2021: A Comprehensive Guide for Indian Companies

Introduction

Directors Identification Number (DIN) is a unique identification number allotted to every director by the Ministry of Corporate Affairs (MCA). It is mandatory for all directors of Indian companies to obtain a DIN. The process of obtaining a DIN involves submitting a DIR-3 KYC form to the MCA. The DIR-3 KYC form is a declaration of the director's personal details, residential address, and other relevant information.

Extended DIR-3 KYC Due Date 2021

The Ministry of Corporate Affairs (MCA) has extended the due date for filing DIR-3 KYC for the financial year 2020-21 to November 30, 2021.

Who is Required to File DIR-3 KYC?

All directors of Indian companies are required to file DIR-3 KYC, except for:

• Directors of companies that have filed for liquidation or have been dissolved
• Directors of companies that have not yet commenced business operations
• Foreign directors who are not residents of India

Consequences of Not Filing DIR-3 KYC

• Directors who fail to file DIR-3 KYC by the due date will be subject to a penalty of Rs. 5,000.
• The company may also be subjected to a penalty of Rs. 1 lakh.
• Directors who fail to file DIR-3 KYC for a period of three consecutive years may be disqualified from holding directorships in any company.

Procedure for Filing DIR-3 KYC

Step 1: Obtain Digital Signature Certificate (DSC)

The first step in filing DIR-3 KYC is to obtain a DSC. A DSC is an electronic signature that is used to authenticate electronic documents. You can obtain a DSC from any of the licensed Certifying Authorities (CAs) in India.

Step 2: Prepare DIR-3 KYC Form

The next step is to prepare the DIR-3 KYC form. The form can be downloaded from the MCA website. The form requires the director to provide their personal details, residential address, and other relevant information.

Step 3: Submit DIR-3 KYC Form

The completed DIR-3 KYC form can be submitted to the MCA online through the MCA portal. The form must be accompanied by a digital signature of the director.

Documents Required for Filing DIR-3 KYC

The following documents are required to be submitted along with the DIR-3 KYC form:

• Proof of identity (copy of PAN card or Aadhaar card)
• Proof of address (copy of utility bill or bank statement)
• A photograph of the director

Fees for Filing DIR-3 KYC

The fee for filing DIR-3 KYC is Rs. 500. The fee can be paid online through the MCA portal.

Benefits of Filing DIR-3 KYC

There are several benefits to filing DIR-3 KYC, including:

• Improved corporate governance: DIR-3 KYC helps the MCA to maintain a comprehensive database of directors. This information is used to improve corporate governance in India.
• Reduced risk of fraud: DIR-3 KYC helps to reduce the risk of fraud by ensuring that only genuine directors are appointed to companies.
• Easier access to credit: Companies with directors who have filed DIR-3 KYC are more likely to be eligible for credit from banks and other financial institutions.
• Increased investor confidence: Investors are more likely to invest in companies with directors who have filed DIR-3 KYC.

Frequently Asked Questions

Q: Who is responsible for filing DIR-3 KYC?
A: All directors of Indian companies are responsible for filing DIR-3 KYC, except for certain exceptions.

Q: What are the consequences of not filing DIR-3 KYC?
A: Directors who fail to file DIR-3 KYC may be subject to a penalty of Rs. 5,000. The company may also be subjected to a penalty of Rs. 1 lakh.

Q: What are the benefits of filing DIR-3 KYC?
A: Benefits of filing DIR-3 KYC include improved corporate governance, reduced risk of fraud, easier access to credit, and increased investor confidence.

Conclusion

The DIR-3 KYC due date for the financial year 2020-21 has been extended to November 30, 2021. All directors of Indian companies are required to file DIR-3 KYC by this date. Failure to file DIR-3 KYC may result in penalties and other consequences.