DIN is basically a unique Director Identification number which is allotted by the Central Government to any individual aiming to become a Director or an existing director of a corporation.
DIN is an 8-digit unique identification number that has lifetime validity. By means of DIN, the particulars of the directors are maintained in a database.
DIN is specific towards an individual that means even if that person is a director in 2 or more corporations; that person has to get only 1 DIN. If that person leaves a corporation and joins some other, the same DIN shall work in the other corporation as well.
Only individual aiming to become director or Designated Partner in a corporation or Limited Liability Partnership could file application for allotment of DIN. The individual is required to be resident in India or outside India.
Where is DIN used?
For a return, an application or any information relating to a corporation would be submitted under any law, the director must sign such return, and the application or information would mention his DIN under his signature.
Which form is needed to file for obtaining DIN?
Form DIR-3 must be filed for the allotment of DIN if an individual is intending to become an appointed as Director or designated partner in an Existing corporation or LLP respectively.
However, if any individual is intending to become a director in a new Corporation, then he must apply for the allotment of Director Identification Number only through Spice form during the time of incorporation.
How to apply for DIN and relevant forms?
1. SPICe Form:
An application for allotment of DINs towards the proposed first Directors regarding new corporations shall be made in SPICe form only.
2. DIR-3 Form:
Any individual intending to be a director in an already existing corporation is required to make an application in eForm DIR-3 for allotment of DIN.
3. DIR-6 Form:
Any changes in the details of the directors would be filed in form DIR-6
Application for allotment of DIN
Section 153 of the Companies Act, 2013, as well as Rule 9 of the Companies (Appointment and Qualification of Director) Rules 2014 furnishes the provision for applying for allotment of DIN. The following steps for the DIN application are:
1. The applicant must go to the Ministry of Corporate Affairs (MCA) website and follow this path- Home> MCA Services> E-Filing>Company Forms Download.
2. The applicant must download Form DIR-3 and fill the form with essential information and attach the copy of
• Photo;
• Proof of Identity;
• Residence address proof; and
• Specimen signature duly verified
3. After filling the form and attaching the essential documents, the applicant must sign the documents using the Digital Signature Certificate (DSC)
4. The signed form is required to be verified digitally by the director/ Company Secretary/ Manager, CEO/ CFO of the corporation.
Application for allotment of DIN is required to be filed with the prescribed fees.
When DIN will be allotted to the individual?
The central government by means its delegated authority process the application filed by an applicant in Form DIR-3. Section 154 of the Companies Act, 2013 as well as with Rule 10 of the Companies (Appointment and Qualification of Director) Rules 2014 provides for the provision for DIN allotment. According to these provisions, the processing of the application completed for allotment of DIN is to be conducted within 1 month from the date of receiving of application along with the fees. The Central Government as part of DIN application processing approves or rejects and communicates the same towards the applicant through post/electronically or by means of any other mode. For approval of the application submitted through an applicant, Central Government communicates the DIN allotted towards the applicant within a month.
If the details of form DIR-3 are found to be duplicate then it gets routed to DIN cell for back-office processing. On approval of the form, provisional DIN becomes permitted DIN and shall be available for further usage.
Non-filing DIN
Consequences of non-filing annual returns
As per the Companies Act 2013, every corporation who has not filed their annual returns towards MCA within the 60 days of the Annual General Meeting and within 30 days for a financial statement would be held legally responsible.
Responsibilities of the Directors
Directors are required to make certain that the corporation is adhering towards rules and regulations. Directors are held responsible if the corporation makes default on compliance or dues payable.
Disqualification of the Directors and Fine and Imprisonment. If the corporation had failed to file its annual returns for continuous 3 years and all the individuals who were directors at that time would be disqualified and their DIN shall automatically get cancelled and that person shall become “inactive” and they such individuals would be prohibited from further appointment as a director for five years from the date of disqualification.
Further, the individual shall be imprisoned for a term extended up to 6 months or with a penalty not less than fifty thousand and it may get extended to one lakh if the director has failed to file even after 270 days from the date on when the corporation should have filed.
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