WHY TO FILE E-FORM DIR-3 KYC?

In recent times; Government of India in its quest for good corporate governance and ease of doing business has been making many changes and implementing new compliances under the Companies Act, 2013. The latest to join this list is a requirement to file the e-form DIR-3 KYC with the MCA.

In pursuant to Rule 12A and Rule 11(2) and (3) of the Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2018 The Ministry of Corporate Affairs as a part of updating its registry would be conducting KYC of all existing DIN/DPIN Holders annually through the e-form DIR-3 KYC.

However, one can think of the following benefits of Government’s this initiative towards better governance:
  1. Eroding Duplication of DIN: There are cases of Multiple DINs of a single person in the MCA’s registry; possibly from it’s earlier time when MCA Digital platform was launched back in 2006. In those cases when a single DIR-3 KYC form will be filed against a single DIN; remaining unused DINs shall automatically get de-activated at the end of the due date.
  2. DIN De-activation of deceased persons: All the deceased persons’ DINs shall automatically get canceled upon non-filing of e-form DIR-3 KYC.
  3. Updating of Personal Mobile No. and Email ID of all existing DIN holders in the MCA database.
  4. Updating and cross verification of PAN cards, AADHAR Cards and other KYC related documents of all existing DIN holders.
  5. DIN De-activation of all non-active DIN numbers; leading to better governance.

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