PRACTICAL ISSUES RELATED TO DIR 3- KYC

CS DIVYANSHU SAHNI

                                          DIVYANSHU SAHNI & ASSOCIATES
COMPANY SECRETARIES
                        Office: -512B, 5th Floor, Kirti Shikhar Building, District Centre, Janak Puri, New Delhi -110058
Email: info@finlegalforte.com    Mob; +91-9871027426             
                                      Website: www.finlegalforte.com, www.csdivyanshusahni.com

FAQ ON MANDATORY ANNUAL KYC OF ALL DIRECTORS ON OR BEFORE 15thSEPTEMBER 2018
v Who have to File DIR-3 KYC?
Ø Every Director who has been allotted DIN on or before 31st march, 2018 and whose DIN status is ‘Approved’.
v What is due date of DIR-3 KYC?
Ø Due date of filing of DIR-3KYC is on or before 15THSeptember, 2018.
v Mandatory Information DIR-3 KYC?
Ø  Unique Indian Personal Mobile Number or Country Code other than +91/91/0 shall be allowed only in case whether resident in India is selected as ‘NO’.
Ø Personal Email ID.
Ø OTP on Email ID and Mobile No.
v Certification of DIR-3 KYC?
Ø DSC of Director 
·         Please note that the PAN mentioned in the form and the PAN                  
                  mentioned in the DSC affixed, must be same for successful  
                  validation.
·         In case of foreign nationals, who do not have PAN, the name         
         mentioned in the form must be same as the name mentioned in the  
         DSC affixed for successful validation
Ø DSC of practicing professional (CA/CS/CMA)
v Whether Disqualified Directors required filing DIR-3 KYC?
Ø  Yes, Filing of DIR-3 KYC would be mandatory for Disqualified Directors also.
v Effect of director fails to file DIR-3 KYC?
Ø  MCA21 system will mark all approved DINs (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason as ‘Non- filing of DIR-3 KYC’.
v  Consequences of filing of DIR-3 KYC after due date?
Ø  After the due date filing of DIR-3 KYC in respect of such deactivated DINs shall be allowed upon payment of Rs.5,000 fee only, without prejudice to any other action that may be taken.
v What does all information Individual need to provide with eForm DIR-3 KYC?
Ø   Director Identification Number (DIN) 
Ø   Full Name of Individual 
Ø   Fathers Name of Individual 
Ø   Other basic details like Nationality, Citizenship details (whether a citizen of India or not), Gender, Date of Birth.
Ø   Income Tax PAN 
Ø   Voters Identity card (optional)
Ø   Passport (If applicant have valid passport/mandatory for foreign national holding DIN) 
Ø   Driving License (optional)
Ø   Aadhaar Card (If applicant have Aadhaar Card holding DIN and In case you do not posses Aadhaar, please provide details of either Voter Identity Card number or Passport number or Driving License Number.)
Ø   Residential Address. In addition to above-mentioned information,
 it also requires, following Documents duly attested by Practicing Professional:        
i)             Proof of Permanent
ii)           residential address in India;
iii)          Poof of Permanent residential  address outside India(In case of Non Citizen of India)
iv)          Proof of Present residential address.
v)           If Applicant has valid passport- Copy of passport
vi)          If Applicant has Aadhaar Card- Copy of Aadhaar Card
v Documents required for the DIR-3 KYC Form?
Ø Proof of Permanent residential address of director
1.   Address proofs like passport, election (voter identity) card, and ration card, driving license, electricity bill, telephone bill or aadhaar shall be attached and should be in the name of applicant only.
2.   In case of Indian director, documents should not be older than 2 months from the date of filing of the eForm.
3.   In case of foreign applicant, address proof should not be older than 1 year from the date of filing of the eForm.
4.   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 home country is also acceptable
Ø         Proof of Present residential address of director
1.   Address proofs like passport, election (voter identity) card, and ration card, driving license, electricity bill, telephone bill or aadhaar shall be attached and should be in the name of applicant only.
2.   In case of Indian director, documents should not be older than 2 months from the date of filing of the eForm.
3.   In case of foreign applicant, address proof should not be older than 1 year from the date of filing of the eForm.
4.   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 home country is also acceptable.
Ø In case Present Residential Address is same as Permanent Residential Address
§  No, other additional attachment is required. There is only one residential proof is sufficient for compliance.
Ø  Proof of Permanent Address outside India
§  For Address proof only passport.
§  In case ‘No’ is selected in the permanent address outside India an Affidavit that you do not have any permanent address outside India MUST be attached.
                            
v Requirement for residential address whether Indian citizen or not and whether resident of India or not?
Ø In case Citizen of India and Resident of India is selected ‘Yes’ in Form DIR 3 KYC
·         Proof of Permanent residential address in India
·         Proof of Present residential address in India
·         If both addresses is similar then one attachment is sufficient for compliance
Ø In case Citizen of India and Resident of India is selected ‘No’ in Form DIR 3 KYC
§  In section of permanent residential address
·       Permanent address outside India is enabled
Ø Two such cases happened in such scenario
1.   If permanent address outside India is selected ‘yes’
then permanent address and present address could
be same or could be different foreign address.
2.   If permanent address outside India is selected ‘No’
    then permanent address should be Indian address and   
    present address should be foreign address. Both 
    permanent address and present address could not be
    same because director is neither citizen nor resident of
    India if address is in India.
Ø In case Citizen of India is selected ‘yes’ and Resident of India is selected ‘No’ in Form Dir 3 KYC
§  Permanent residential address is whether Indian or Foreign address it could not be same as present residential address.
§  Present address should be other than Indian address.
Ø In case Citizen of India is selected ‘No’ and Resident of India is selected ‘yes’
§  In section of permanent residential address
·       Permanent address outside India is enabled
Ø Two such cases happened in such scenario
1.   If permanent address outside India is selected ‘yes’ then permanent address and present address could not be same.
2.   If permanent address outside India is selected ‘No’ then permanent address and present address could be same.
v DSC Requirement in case of Indian Director or Foreign Director?
Ø Indian Director
§  Pan for Indian citizen
§  Address proof- Passport, election (voter identity) card, and ration card, driving license, electricity bill, telephone bill or Aadhaar card
§  Mobile number and E-mail ID
§  Passport size photo
Ø Foreign Director
§  There are two cases while applying DSC of foreign director
·         If foreign director has pan card and utility bill in India is sufficient for DSC registration.
·         If foreign director has passport then it should be apostille and apply in the form of hard copy.
§  Passport photo
§  Indian mobile number(If foreign number is used then there is no need of phone verification)
§  E-mail ID
*Phone and video verification is must in case of DSC registration w.e.f. 1st july,2018.
v Whether details entered in the form DIR-3 KYC will update DIN Holders’ database?
Ø  Yes. All information as entered in the form DIR-3 KYC shall be updated in the DIN holders’ database.
Ø  There is no need to file DIR-6 for any changes

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