As we have discussed in the previous post about Director Identification Number (DIN ), It is essential for the Director of a Company. If you’re planning to become a Company’s Director and want to learn about the DIN registration process, you’re on the right track. Continue scrolling!
Eligibility to Apply for DIN
Anyone who intends to become a director in India must apply for DIN Registration. However, it is necessary to meet the eligibility criteria for the same which has been put forth by MCA. Make sure you meet these required conditions mentioned below before filing an application for the DIN Registration:
- Nationality: You can apply for DIN irrespective of your nationality. It is not necessary to be a citizen of India to be a director in a India-based company. However, if you belong to one of the countries that share land borders with India, such as China, Pakistan, Afghanistan, Nepal, Bangladesh, etc. you need to get prior approval from the Ministry of Home Affairs.
- Age Limit: There is no age limit mentioned for applying for DIN but in order to be a Director of a Company as per the rules of the Companies Act 2013, you must be at least 18 years of age, so the same age shall be considered for applying for DIN.
- Intention to be a Director: The individual must have the intention of becoming a director in an existing company or a company amidst the process of being incorporated. This applies for both the executive as well as the non-executive directors.
- Documents Required: All the necessary documents for the verification must be with the applicant, including the documents regarding identity proof and address proof. Depending on the nationality of the applicant, some of these documents might vary. While the Indian national must submit their PAN as a mandatory proof of identity, the foreign nationals are required to submit their passport for the same purpose.
Process for DIN Registration
Registration for DIN is a relatively easy process. All you need to do is to follow these simple steps:
Step 1 : Visit the official website of MCA, and go to the home page where ‘MCA services’ option is available and then go to E-filing where ‘Company Forms Download’ is available.
Step 2 : Download Form_DIR-3 and fill all the required details correctly.
Step 3 : The form needs to be attached with the following documents:
- Photograph
- Identity Proof such as Aadhaar Card and PAN
- Proof of Residence
- Authorized signature of the applicant
Step 4 : Once the form is filled and the required documents are attached, you must sign them with the help of Digital Signature Certificate (DSC).
Step 5 : The Director/Company Secretary/Manager, CEO/CFO of the company must digitally verify the signed form. Previously, practicing CA/CS/CMA were required to verify it.
Step 6 : For the allotment of DIN, the application must be filed with the fees prescribed by MCA.
Cancellation of DIN
A Director’s DIN can be canceled by the Central Government in cases mentioned below:
- If the government finds out a duplicate DIN has been issued to the director
- If the DIN was obtained by the director through fraudulent practices
- In case of demise of the concerned director
- In case the court declares that the director has an unsound mind
- The person has been declared to have an ‘unsound mind’ by the court
- The person has been declared as bankrupt by the court
A director is also permitted to surrender the DIN allotted to him by submitting an application using Form DIR-5. Along with the form, he is required to submit a declaration stating that he has never been appointed as the company’s director and the DIN allotted to him has never been utilized for filing any documents with any organization. Once the government receives the application, it will verify the e-records and thereafter, deactivate the director’s DIN. It is important to note that once an individual is a company’s director as per the Companies Act 2013, he cannot give up his DIN at a later stage. Even if he no longer remains a director in that company or any other one, his DIN will not cease to exist.
Verification of DIN
The process of DIN verification involves verifying the unique identification number that has been assigned to the director of an existing company or an aspiring individual who wants to join as a company’s director. DIN verification process includes verifying the identity of the director and also his credentials, as well as ensuring that the director is not involved in any frauds or fired from a company where he was previously serving as a director due to unethical reasons or non-compliance with the legislation. In order to confirm the genuineness and accuracy of DIN as part of the DIN verification process, it is necessary to check with the Minstery of Corporate Affairs databases and government records. DIN verification assists the regulatory authorities for the purpose of tracking the director’s conduct and to take legal actions if deemed necessary.
Changes in details/particulars in DIN
If the DIN holder wants to change any details that were provided by him during the DIN allotment application under Form DIR 3, he must intimate such change to the Central Government. In order to amend the existing details, he has to file an application through Form DIR 6. Once he is done filling this form, he must verify it with Digital Signature Certificate (DSC) and also get it digitally signed by an individual who is a practicing Chartered Accountant, Company Secretary or Certified Management Accountant.
Conclusion
DIN Registration is mandatory for the existing directors of companies. Without this registration, an individual cannot practice as a director in a company. If you need assistance in applying for DIN registration, connect with Registrationkraft team for a hassle-free process! We promise to serve you in the best way possible!