Section 153 of the Companies Act, 2014 mandates that every individual expected to be appointed as a Director of a Company must make an application for the allotment of Director Identification Number (DIN) to the Central Government.
On receiving the application for Director Identification Number (DIN), the Central Government allots DIN to the applicant. Further, any individual who has already been alloted the DIN under Section 154 of the Companies Act cannot apply for another DIN.
In addition to this, every existing Director is required to give his DIN to the company or companies where he is the Director within one month of receiving the DIN from the central Government.
As per Section 157(1) of the Companies Act, 2014, every company must provide the DIN of its Directors to the Registrar within 15 days of receiving the intimation of the DIN by the Directors.
There can be a case where the company fails to give DIN to the Registrar before the expiry of a period of 270 days from the due date at which it should have been given along with the fee. In such a scenario, the company would be liable to pay a fine.
This fine would not be less than Rs 25,000 but may extend to Rs 1 Lakh. Further, every person defaulting with this regards shall also be liable for a fine not less than Rs 25,000 which may be extended to Rs 1 Lakh.
Thus, every individual intending to become a Director in an existing or a new company must possess DIN.
What is DIN?
Director Identification Number (DIN) is nothing but an identification number allotted by the Central Government to any individual who either:
- intends to be appointed as a Director or
- Is an existing Director of the Company
Further, such a number is allotted for the purpose of the identification of the Director.
Application For DIN
Following are the various cases for Application of Directors Identification Number (DIN):
SPICe Form is used by any individual who does not have a DIN and is proposed to be one of the first Directors in the new company. Such an applicant Director needs to provide Proof Of Identity and Address together with the application.
The DIN in this case would be given to the applicant only once the Form submitted is approved.
An applicant intending to be appointed as a Director of an existing company is required to make an application electronically in Form DIR-3 to the Central Government for allocation of DIN.
DIR-3 is accompanied with fees as provided in the Company Rules 2014. Further, there can be cases where the proposed Directors do not have an approved DIN. In such circumstances, the details of maximum three Directors can be specified in Form No. INC-32 (SPICe). DIN would then be allocated to maximum three proposed Directors via Form INC-32 (SPICe).
Likewise, an individual intending to be appointed as a designated partner of an existing LLP also needs to make an application electronically via Form DIR-3 to obtain DPIN (Designated Partner Identification Number) under LLP Act 2008.
Further, such DPIN is enough for being appointed as a designated partner under LLP Act, 2008.
The process of electronic Application for DIN via Form DIR-3 is as follows:
Supporting Documents To Be Provided
The applicant intending to be the Director of an existing company needs to provide a photograph along with a scanned copy of the supporting documents. These documents include proof of identity and proof of residence according to the provisions.
Further, the applicant need not submit the physical documents at DIN cell but attach the same with the e-Form DIR-3.
DIR-3 shall be signed and submitted electronically by the applicant using his or her own Digital Signature Certificate (DSC).
Further, such signed Form DIR-3 would be verified digitally. It is done either by:
- a Company Secretary who is in full time employment of the Company or
- Managing Director or Director or CEO or CFO of the company in which the applicant is proposed to be appointed as a Director in an existing company.
Requisite Fee Payment
Once the Form as well as the supporting documents are uploaded, the applicant needs to make the payment in respect of the filing fee of e-Form DIR-3.
It must be noted that the applicant is allowed to make only electronic payment of the fees using net banking, credit card, debit card, pay later or NEFT.
In order to upload the e-Form DIR-3 and make the payment of the requisite fee, the applicant must register on the MCA 21 portal in order to obtain the login ID.
Once, the applicant is registered at the MCA 21 portal, he or she can upload the e-Form DIR-3 by clicking on ‘e-Form Upload’ link available under the ‘e-Forms’ tab.
e-Form DIR-3 would be processed only once the DIN application fee is paid by the applicant.
On successful uploading and payment of the requisite fee, approved DIN is generated if the particulars mentioned in DIR-3 are not identified as potential duplicate.
However, if DIR-3 details are identified as potential duplicate, Provisional DIN is generated.
In circumstances where DIR-3 particulars are identified as potential duplicate, such e-Form DIR-3 goes to the DIN cell for back office processing. Once the Form is approved, Provisional DIN becomes approved DIN and thus becomes available for future use.
An applicant must submit e-Form DIR-6 as per Rule 12(1) of the Companies Act, 2014. As per this rule every individual who has been allotted a Director Identification Number shall submit e-Form DIR-6 in case there are any changes in his particulars as stated in Form DIR-3.
Such changes need to be communicated to the Central Government through the above mentioned form within a period of thirty days of such changes. These changes must be communicated in the following manner:
- Applicant shall download Form DIR-6 from the portal and fill in the relevant changes. Further, he needs to attach copy of the proof of the changed particulars and verification in the Form DIR-7. Such a form needs to be scanned and submitted electronically.
- Form must be digitally signed by a chartered accountant or a company secretary or a cost accountant in practice.
- Finally, applicant shall submit the Form DIR-6.
Documents For DIN
Following are the list of documents required to be attached with DIR-6 necessarily:
- Proof of Identity of applicant
- PAN in case of Indian nationals
- Passport in case of foreign nationals
- Date of birth of the applicant matching the date of birth filled in the application form
- Additional proof of Date of Birth duly certified/ attested in case the proof of identify does not indicate the Date of Birth
- Proof of residence of applicant
- Address proofs like passport, election (voter identity) card, and ration
card, driving license, electricity bill, telephone bill or Aadhaar in the name of the applicant
- documents should not be older than 2 months from the date of filing of the e-Form in case of an Indian applicant
- address proof should not be older than 1 year from the date of filing of the e-Form in case of a foreign applicant
- Address proofs like passport, election (voter identity) card, and ration
- Copy of verification by the applicant as per e-Form No. DIR-4
Rejection of DIN
There are some typical mistakes made by the applicants due to which DIN application gets rejected. These are as follows:
- Supporting documents not submitted e.g. proof of identity, proof of father’s name, proof of date of birth, proof of address of the applicant or copy of passport of foreign nationals
- Submitting invalid application or supporting documents e.g. submitting:
- invalid or expired supporting documents
- proof of identity that has not been issued by a Government Agency
- application/enclosed evidence that has handwritten entries
- application that is a duplicate DIN application and already one application of that applicant is pending or approved
- application that does not have photograph affixed
- signatures that are not appended to the prescribed place
- application form in which applicant’s name filled does not match with the name in the enclosed evidence
- the application in which the applicant’s father’s name does not match with the father’s name in the enclosed evidence
- application form in which applicant’s date (DD/MM/YY) of birth does not match with the date of birth in the enclosed evidence
- the application in which the address details filled do not match with those contained in the enclosed supporting evidence
- Form DIR-3 in which gender is not entered correctly
- application in which the Identification number entered does not match with the identity proof enclosed
- documents that are not self-attested