Deactivation Process: Form DIR-3 KYC By Anmol Shanwlesha


Form DIR-3 KYC - DIN Deactivation Process Started: Answer to some important Questions 

Earlier this year, the Ministry of Corporate Affairs (MCA) has mandated that individuals having DIN should complete KYC formalities by September 15th. The move was part of a clean-up drive meant to rid several company boards to drivers, domestic helpers and others who have been nominated on company board without their knowledge.

The move was aimed at weeding out fake names being listed as genuine directors. This was a part of the government larger strategy to clamp down on the shell or proper companies that seek to operate outside regulatory boundaries.

Following this compliance, less than 12 lakhs individual or just over 35% of the 33 lakhs “active directors” have complied with a newly-mandated KYC requirement to be eligible for a board position in companies. 

Question 1: Will the date be extended beyond 15th September 2018?

Well, it seems that Ministry is unlikely to extend it as it had issued following two advisories regarding the same on the website:

I. No Further Extension of the Last date for filing e-Form DIR-3 KYC for DIN allotted on or before 31st March 2018: Ministry of Corporate Affairs

On the deadline date, Saturday, MCA issued an advisory that “No further extension of time beyond 15th September 2018 is being accorded for filing DIR-3 KYC (without fee). All filing thereafter will attract a fee of Rs. 5000. Stakeholders may kindly take a note and plan accordingly.”

II. MCA to Start Deactivation of Non-compliant DINs: Ministry of Corporate Affairs

In the midnight of 16th September, MCA issued a further advisory that “As you are aware the last date of filing form DIR-3 KYC without fee has expired on 15th September 2018. The process of deactivating the non-complaint DINs is in progress and likely to be completed by 17th September 2018. Please note that the form DIR-3 KYC will not be available for filing during the pendency of this activity (from 16th September 2018 to 17th September).

DINs which have not complied with the requirement of filing DIR-3 KYC has been marked as DEACTIVATED and such DINs are not allowed to be used for filing any forms on MCA portal.

If in case the present status of any DIN is DEACTIVATED (to check the same please refer question 2 below) individual is required to file the form DIR-3 KYC with prescribed fees of Rs. 5000 or other as may be prescribed to Reactivate the DIN.

However, a Recent update on Economic Times shows that there might be a further extension of penalty amount could be brought down.

Here please be noted that late in annual filing attract per day Rs. 100 penalty and at least one DIN is required to be activated for annual filing.

Question 2: How to check that DIN is currently is Deactivated or not.

One can check their DIN status from MCA portal. The steps of the same are as follows:

Step A: Go to www.mca.gov.in and to MCA SERVICES tab.

Step B: Tap on DIN Services tab and click Enquire DIN Status.

Step C: Fill the DIN in mandatory filed tab and submit the same.

When you submit the above it shows the status of DIN in DIN status.

Question 3: Different problems during filing of the forms.

At the last date of KYC, at some locations, the MCA website is not working properly due to internet connectivity issues or heavy traffic on the website. For the same reason, a receipt is not generated after filing of the form. You can download the same by following the steps below:

Step 1: Go to your account by which you filed the form and find the SRN against which you filed the form, or if you already filled the form at the time of pre-scrutiny it shows an error that your KYC is already filed against SRN H000000.

Step 2: Paste the SRN in Track Payment Status tab (www.mca.gov.in >> MCA Services >> Fees and Payment Services >> Track Payment Status) and Submit it.

By following the above steps you can generate your receipt or any other person’s form.

Sometimes the receipt is not generated and it shows ‘raise a ticket to find the receipt’ then you can raise the ticket and save the SRN for future.

Question 4: Is it mandatory to file DIR-3 KYC form EVERY YEAR?

There is a rumour that DIR-3 KYC need to be filed every year, but this is partially right. Small scenario of the notification of MCA for the filing of a form is mentioned below:

For financial year 2018-19

Any person who has been allotted “Director Identification Number” [DIN in case of company; DPIN in case of Limited Liability Partnerships] on or before 31st March, 2018 and the status of DIN is “Approved”, needs to file form DIR-3 KYC to update KYC details in the system of MCA on or before 31st March, 2018 [which was later extended to 15th September, 2018].

For the financial year 2019-20 onward

Every Director who has been allotted DIN on or before the end of the financial year, and whose DIN status is “Approved”, would be mandatorily required to file form DIR-3 KYC before 30th April of the immediately next financial year.

This means that DIR-3 KYC required to be filed every year, but only by those director who has been allotted new DIN during the year. Directors who already filed their DIR-3 KYC do not need to file the same form every year, they could change or update their details by filing DIR-6 same as earlier.

Question 4: Different types of PAN error in the form.

Error 1: “Applicant or Applicant Father’s name does not matches with PAN Database. Kindly provide the same as Income Tax PAN Database.”

Let’s discuss the first problem which is, the form shows an error that – “Applicant or Applicant Father’s name does not matches with PAN Database. Kindly provide the same as Income Tax PAN Database.”

This problem could be solved if the director is an Indian director. Here we only require the DIN and PAN Number of the director.

Simply go the MCA portal and find the tab “Verify DIN PAN Details of Director” [www.mca.gov.in >> mca services >> DIN services >> verify DIN PAN details of director], in which you first need to paste DIN number of director and in next page when it shows the name of director, mention the name as in PAN card. After submitting the same, it shows the exact director name and his/her father name. Mention these names in form and then verify the PAN details, the error will be solved.

Error 2: Error at the time of registering the DSC.

Here the problem arises when you do not enter the same details as you fill at the time of filing form DIR-3. Mention the same details as you have entered at the time of DIN.

Error 3: Form shows an error - “Please ensure that the PAN entered in the form matches with the PAN of the DSC holder”.

This simply happens because of two reasons: First when the Digital Signature is generated, one has entered wrong PAN details due to error or the person has two PAN cards at the time of DSC or Secondly, the DSC is not properly encrypted as per the system requirement of MCA.
There is no solution of this problem, simply prepare the new DSC with the name of the applicant with correct PAN number.

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