KYC norms for Directors – Mandatory reporting in e-form DIR-3-KYC

Regulatory Insights

from India Tax & Regulatory Services

www.pwc.in

KYC norms for Directors –

Mandatory reporting in e-form

DIR-3-KYC

August 27, 2018

In brief

The Ministry of Corporate Affairs (MCA) vide Companies (Appointment and Qualification of

Directors) Fourth Amendment Rules, 2018 (Rules) has introduced mandatory filing of new e-form

DIR-3-KYC on an annual basis. The notification is effective from 10 July, 2018 and the e-form is

currently available on the MCA portal for filing.

In detail

Purpose

As part of updating its registry,

the MCA would be conducting

the KYC of all directors of all

companies annually through a

new e-form, DIR-3-KYC.

Applicability

 Every director (Indian and

foreigner) who has been

allotted a director

identification number

(DIN) as on 31 March of a

financial year (FY).

 This is also applicable to an

individual who has been

allotted a DIN and whose

DIN has “Approved” status,

on or before 31 March,

2018.

Note: Filing DIR-3-KYC would

also be mandatory for

disqualified directors.

Due date

 30 April of the immediate

FY.

 15 September, 2018 for FY

ending 31 March, 2018.

Form for filing KYC

e-form DIR-3-KYC

Certification requirements

 Digital signature certificate

(DSC) of the Applicant, i.e.,

the director himself.

 DSC of Chartered

Accountant/ Cost

Accountant or Company

Secretary in practice.

Information and

documents required

 Personal mobile number

and e-mail ID for OTP

verification.

 For Indian directors,

income-tax permanent

account number (PAN) and

Aadhaar are mandatory.

 For foreign directors,

passport is mandatory.

 Proof of address can be

Aadhaar, passport, driving

license, utility bill or bank

statement.

Note

1. Proof of present

residential address

would be required when

the present residential

address is different

from that of the

permanent residential

address.

2. Any document issued

outside India is

required to be duly

apostilled/ legalised

and notarised, as

applicable, in the

country of issuance.

3. If the documents are

not in English, their

translation into English

by a professional

translator carrying

details (name,

signature, address) and

seal will be required.

Consequences of non-filing

After the expiry of the due date

by which the KYC form is

required to be filed, the MCA

will mark all approved DINs

against which the DIR-3 KYC

form has not been filed as

“Deactivated” with reason as

“Non-filing of DIR-3 KYC.”

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However, the de-activated DINs

shall be re-activated only after the

e-form DIR-3-KYC is filed with

the specified fee.

Other key points

It is pertinent to note that for

Indian directors, the verification

process will be PAN-based, as

the name shall be verified

with

the PAN database.

In case of foreign nationals who

do not have a PAN, the name

mentioned on the form must be

same as that mentioned in the

affixed DSC, for successful

validation.

Let’s talk

For a deeper discussion of how

this issue might affect your

business, please contact your

local PwC advisor

Regulatory Insights

For private circulation only

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