By CA Soniya Agarwal
Provisions in Companies Act related to Director Identification Number (DIN)
Section 153: 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.
Section 154: 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.
Section 155: 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.
Section 156: Director to intimate Director Identification Number:
Every existing director shall, within one month of the receipt of Director Identification Number from the Central Government, intimate his Director Identification Number to the company or all companies wherein he is a director.
Section 157 : Company to inform Director Identification Number to Registrar :
- Every company shall, within fifteen days of the receipt of intimation under section 156, furnish the Director Identification Number of all its directors to the Registrar or any other officer or authority as may be specified by the Central Government with such fees as may be prescribed or with such additional fees as may be prescribed within the time specified under section 403 and every such intimation shall be furnished in such form and manner as may be prescribed.
- If a company fails to furnish Director Identification Number under sub-section (1),before the expiry of the period specified under section 403 with additional fee, the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees and every officer of the company who is in default shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees.
Section 158 : Obligation to indicate Director Identification Number :
Every person or company, while furnishing any return, information or particulars as are required to be furnished under this Act, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director.
Section 159 : Punishment for contravention :
If any individual or director of a company, contravenes any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to fifty thousand rupees and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day after the first during which the contravention continues.
Rule 9 of Companies (Appointment and Qualification of Directors) Rules, 2014 : Application for allotment of Director Identification Number :-
(1) Every individual, who is to be appointed as director of a company shall make an application electronically in Form DIR-3, to the Central Government for the allotment of a Director Identification Number (DIN) along with such fees as provided in the Companies (Registration Offices and Fees) Rules, 2014.
(2) The Central Government shall provide an electronic system to facilitate submission of application for the allotment of DIN through the portal on the website of the Ministry of Corporate Affairs.
(3) (a) The applicant shall download Form DIR-3 from the portal, fill in the required particulars sought therein and sign the form and after attaching copies of the following documents, scan and file the entire set of documents electronically-
(ii) proof of identity;
(iii) proof of residence;
(iv) verification by the applicant for applying for allotment of DIN in Form DIR-4; and
(v) specimen signature duly verified.
(b) Form DIR-3 shall be signed and submitted electronically by the applicant using his or her own Digital Signature Certificate and shall be verified digitally by –
(i) a chartered accountant in practice or a company secretary in practice or a cost accountant in practice; or
(ii) a company secretary in full-time employment of the company or by the managing director or director of the company in which the applicant is to be appointed as director.
Rule 10 of Companies (Appointment and Qualification of Directors) Rules, 2014 : Allotment of DIN :-
(1) On the submission of the Form DIR-3 on the portal and payment of the requisite amount of fees through online mode the provisional DIN shall be generated by the system automatically which shall not be utilized till the DIN is confirmed by the Central Government.
(2) After generation of the provisional DIN, the Central Government shall process the applications received for allotment of DIN under sub-rule (2) of rule 9, decide on the approval or rejection thereof and communicate the same to the applicant along with the DIN allotted in case of approval by way of a letter by post or electronically or in any other mode, within a period of one month from the receipt of such application.
(3) If the Central Government, on examination, finds such application to be defective or incomplete in any respect, it shall give intimation of such defect or incompleteness, by placing it on the website and by email to the applicant who has filed such application, directing the applicant to rectify such defects or incompleteness by resubmitting the application within a period of fifteen days of such placing on the website and email:
Provided that the Central Government shall –
(a) reject the application and direct the applicant to file fresh application with complete and correct information, where the defect has been rectified partially or the information given is still found to be defective;
(b) treat and label such application as invalid in
the electronic record in case the defects are not removed within the given time; and
(c) inform the applicant either by way of letter by post or electronically or in any other mode.
(4) In case of rejection or invalidation of application, the provisional DIN so allotted by the system shall get lapsed automatically and the fee so paid with the application shall neither be refunded nor adjusted with any other application.
(5) All Director Identification Numbers allotted to individual(s) by the Central Government before the commencement of these rules shall be deemed to have been allotted to them under these rules.
(6) The Director Identification Number so allotted under these rules is valid for the life-time of the applicant and shall not be allotted to any other person.
Rule 11 of Companies (Appointment and Qualification of Directors) Rules, 2014 : Cancellation or surrender or Deactivation of DIN-
The Central Government or Regional Director (Northern Region), Noida or any officer authorised by the Regional Director may, upon being satisfied on verification of particulars or documentary proof attached with the application received from any person, cancel or deactivate the DIN in case –
(a) the DIN is found to be duplicated in respect of the same person provided the data related to both the DIN shall be merged with the validly retained number;
(b) the DIN was obtained in a wrongful manner or by fraudulent means;
(c) of the death of the concerned individual;
(d) the concerned individual has been declared as a person of unsound mind by a competent Court;
(e) if the concerned individual has been adjudicated an insolvent:
Provided that before cancellation or deactivation of DIN pursuant to clause (b), an opportunity of being heard shall be given to the concerned individual;
(f) on an application made in Form DIR-5 by the DIN holder to surrender his or her DIN along with declaration that he has never been appointed as 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.
Explanation.- For the purposes of clause (b) –
(i) the term “wrongful manner” means if the DIN is obtained on the strength of documents which are not legally valid or incomplete documents are furnished or on suppression of material information or on the basis of wrong certification or by making misleading or false information or by misrepresentation;
(ii) the term “fraudulent means” means if the DIN is obtained with an intent to deceive any other person or any authority including the Central Government.
Rule 12 of Companies (Appointment and Qualification of Directors) Rules, 2014 – Intimation of changes in particulars specified in DIN application :-
(1) Every individual who has been allotted a Director Identification Number under these rules shall, in the event of any change in his particulars as stated in Form DIR-3, intimate such change(s) to the Central Government within a period of thirty days of such change(s) in Form DIR-6 in the following manner, namely;-
(i) the applicant shall download Form DIR-6 from the portal and fill in the relevant changes, attach copy of the proof of the changed particulars and verification in the Form DIR-7 all of which shall be scanned and submitted electronically;
(ii) the form shall be digitally signed by a chartered accountant in practice or a company secretary in practice or a cost accountant in practice;
(iii) the applicant shall submit the Form DIR-6;
(2) The Central Government, upon being satisfied, after verification of such changed particulars from the enclosed proofs, shall incorporate the said changes and inform the applicant by way of a letter by post or electronically or in any other mode confirming the effect of such change in the electronic database maintained by the Ministry.
(3) The DIN cell of the Ministry shall also intimate the change(s) in the particulars of the director submitted to it in Form DIR-6 to the concerned Registrar(s) under whose jurisdiction the registered office of the company(s) in which such individual is a director is situated.
(4) The concerned individual shall also intimate the change(s) in his particulars to the company or companies in which he is a director within fifteen days of such change.
Step 1: Download Form- DIR-3 from MCA Portal by given link. http://www.mca.gov.in/MinistryV2/Download_eForm_choose.html
Step 2 : Get Scanned Following Document :
1. Passport Size Photo
2. Proof of Identity of Applicant (Self – Attested) :
– In case of Indian nationals, Income-tax PAN is a mandatory requirement for proof of identity
– In case of foreign nationals, passport is a mandatory requirement for proof of identity.
3. Address proofs of Applicant (Self – Attested): Passport, Election (Voter Identity) Card, Ration Card, Driving License, Electricity Bill, Telephone Bill or Aadhar Card shall be attached and should be in the name of applicant only.
– In case of Indian applicant, documents should not be older than 2 months from the date of filing of the E-Form.
– In case of foreign applicant, address proof should not be older than 1 year from the date of filing of the E-Form
Step 3 : Obtain DSC : Get Class 2 Dsc Certificates from Certifying Authority licensed by Controller of Certifying Authorities , for DSC we need
– Self attested pan card – id proof(compulsory)
– Passport size photo – 1
– Self attested address proof
Step 4: Form Filling
1.Fill the FORM DIR – 3 attaching the step 2 scanned documents.
2. The form is to be digitally signed by the Applicant and Practising Professional (CA/CS/CWA in whole-time practice) or company secretary in full-time employment or director of the company in which the applicant is to be appointed as a director
Step 5 : Applicant / Professional Registration on the MCA21 Portal to obtain login id :
1. Click the “New User” link on the MCA portal homepage.
2. Select appropriate User category and role and fill your personal and contact details.
3. Enter a User ID of your choice and depending upon the user category & role selected, enter password or select your digital signature certificate. Your User ID can be a minimum of 8 and a maximum of 11 characters. The password can be 8 to 10 characters long and should contain at least one numeric character, one upper case and one lower case alphabet and should not contain any special character such as *, &, $, _ etc.
4. Provide a hint question and its answer that will be used in case you forget your password or to change/ update your DSC later.
5. Type the randomly displayed system generated text in the box provided, for authentication.
6. Click ‘Create My Account’ button to submit the details for registration.
7. Acknowledgement for successful registration will be displayed on the screen
8. A confirmation email will also be sent to your email ID as provided by you.
Step 6 : Form Uploading and Fees Payment :
After obtaining the login-id, Login to the MCA21 portal and click on ‘e-Form upload’ link available under the ‘e-Forms’ tab for uploading the e-Form DIR-3.Upon upload, pay the fees ( Rs 500/-) for e-Form DIR-3 , Only electronic payment of the fees shall be allowed (I.e. Net banking / Credit Card) e-Form DIR-3 will be processed only after the DIN application fee is paid.
Step 7: DIN Generation : In case Form DIR-3 details have not been identified as potential duplicate, Approved DIN shall be generated and if the details have been identified as potential duplicate, Provisional DIN shall be generated. In case, DIR-3 is a potential duplicate, the MCA DIN cell will examine the e Form DIR-3 and same shall be disposed of within one or two days.
Possible Reasons for Form Rejection
- 1. Applicant’s name and father’s name mentioned in abbreviated form. – The Name should be expanded even if the ID proof contains the name in abbreviated form.
- Mismatch in the Name and Father’s Name in DIN form with the ID (Identity) proof enclosed. – Any mismatch in Name, including spelling mistake, may lead to rejection of application. Minor spelling deviations in the father’s name may be accepted, if such deviations do not materially impact the name. Prefixes like Mr. / Ms. / Kumari / Shri etc. used in the applicant’s name.
- Residence proofs like: Bank Statements, Electricity Bill, Telephone Bill, Utility bills etc. submitted are older than 2 months of submitting the application for verification OR such documents are in the name of some other person, for example father or spouse.
- The supporting documents are not duly attested i.e. Name, Designation, Membership/ Practicing certificate number etc. are not clearly indicated. – If the seal/ stamp do not contain membership/ practicing certificate number, same may be recorded by hand.
- Passport / Driving License / Identity proofs etc attached are expired. – Only such documents which are currently valid should be attached.
Step 8: Post-approval changes in particulars of Form DIR-3:
If there is any change in the particulars submitted in e-form DIR-3, applicant can submit e-form DIR-6 online. For instance in the event of change of address of a director, he/ she is required to intimate this change by submitting e-form DIR-6 along with the required attested documents.