Provisions and Process Related to DIN Surrender By CS Annu Sharma



BASIC CONCEPT:

Section 153 talks about Application for allotment of Director Identification Number: Every individual intending to be appointed as director of a company shall make an application for allotment of Director Identification Number to the Central Government in such form and manner and along with such fees as may be prescribed (Which is Rs. 500/-).

Section 154 talks about Allotment of Director Identification Number: The Central Government shall, within one month from the receipt of the application under section 153, allot a Director Identification Number to an applicant in such manner as may be prescribed.

REASON FOR THE SURRENDER OF DIN

  • Having multiple DINs
  • DIN was obtained in a wrongful manner or by fraudulent means
  • Death of the concerned individual
  • The concerned individual is declared as a person of unsound mind by a competent court
  • The concerned individual has been adjudicated as insolvent
  • Concerned individual is/was not associated with any company/LLP
Section 155 talks about Prohibition to obtain more than one Director Identification Number: No individual, who has already been allotted a Director Identification Number under section 154, shall apply for, obtain or possess another Director Identification Number.

DIN is tied to PAN or Passport number of the applicant and each person is allowed to obtain one DIN as per rules and regulations. Hence, prior to applying for a DIN, its important for the applicant to verify if he/she has been allotted a DIN by verifying the DIN database. Know how to search for DIN.

During the DIN registration process as well, the procedure has been put in place by the Government to prevent duplicate DIN generation by verifying against the PAN database. However, in rare cases, a duplicate DIN may be generated inadvertently. For such cases, the Government has recently introduced Form DIR-5 for the surrender of DIN.

HAVING TWO DINs WHAT TO DO AND HOW TO CHECK IF ONE IS HAVING TWO DINs?

One should preferably cross check from the MCA website that whether he is occupying more than one DIN as per process is given below:

STEPS:

  1. Go to MCA website Link:   http://www.mca.gov.in/
  2. Log in by your user ID on MCA website.
  3. Click on “Companies/LLPs in which a person is/was a director/Designated Partner”
  4. Click on Search Button in form of DIN/DPIN
  5. Mention the Name, Father Name and Date of Birth and search.
  6. MCA will display the DIN No. allotted to you.
If one find more than one DIN. He/She should immediately take steps to surrender the duplicate DIN, preferably which are not in use.

NOW SURRENDER OF DIN (DIRECTOR IDENTIFICATION NUMBER):

RULE:11(f) OF SECTION 153

(f) on an application made in Form DIR-5 by the DIN holder to surrender his or her DIN along with the declaration that he has never been appointed as the director in any company and the said DIN has never been used for filing of any document with any authority, the Central Government may deactivate such DIN. Provided that before deactivation of any DIN in such case, the Central Government shall verify e-records.
 
Application for surrender of DIN in e-form DIR-5 can be filed with any reason such as DIN is unused and not intended for future reference also or multiple DINs are allotted to the same person or DIN holder is no more/has become of unsound mind or insolvent etc. This application will further be processed by RD-North Region.
 
E-FORM DIR-5

Any person wishing to surrender a DIN can file Form DIR-5 with the MCA. In Form DIR-5 the following information must be provided by the applicant:

  • Any DIN Number held by the applicant
  • Reason for the surrender of DIN
  • Whether DIN holder is retaining any DIN
  • Number of DIN(s) being surrendered by the applicant
  • DIN Number to be surrendered
  • Digital signature of the person surrendering the DIN.
In the following cases, another related person can also sign Form DIR-5:

Form DIR-5 can also be filed or digitally signed by a relation of the person if the DIN holder has passed away or has been declared as a person of unsound mind by a competent court or the person has been adjudicated as insolvent.
 
DOCUMENTS REQUIRED FOR SURRENDER OF DIN

The following documents must be filed by the applicant along with Form DIR-5 for the surrender of DIN.
 

Passport Size Photograph

In JPEG Format

Proof of Identity

Identity proofs like Voters Identity Card/Passport/ Driving License/ Aadhaar Card/ PAN Card must be submitted.

Proof of Address

 

Address proofs like passport, election (voter identity) card, and ration card, driving license, electricity bill, telephone bill or aadhaar card in the name of the applicant.

#  In case of Indian applicant, documents should not be older than 2 months from the date of filing of the eForm.

#  In the case of a foreign applicant, address proof should not be older than 1 year from the date of filing of the eForm.

Optional Attachments

 

In case a DIN is surrendered because a person is declared as insolvent or of unsound mind, then the court order must be attached. In case of surrender of DIN due to death of the person, then a copy of death certificate must be attached.

In case of proofs which are in languages other than Hindi / English, the proofs should be translated in Hindi / English from professional translator carrying his details (name, signature, address) and seal. In the case of foreign nationals, translation done by the notary of the home country is also acceptable.

 
DIGITAL SIGNATURE OF PROFESSIONAL

Form DIR-5 must finally be signed by any of the following professionals:

  • Chartered Accountant in whole time practice
  • Company Secretary in whole time practice
  • Cost Accountant in whole time practice.
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