How to Surrender DIN: Step-by-Step Guide and Key Considerations

Introduction

Important things to remember are that designated partners and business directors must have a DIN, certain inactive and duplicate DINs may be surrendered, and appropriate documents must be filed with the regional director. 

Our objective is to assist people in navigating the procedure and give them a better grasp of the legal environment around DIN surrender. The Central Government may order the Director to resign their DIN, or the DIN holder may do so voluntarily.

Ways to Surrender DIN 

1. By order of the Central Government: 

In situations like the following, the Central Government may order the surrender of a Director’s DIN:

• Should the Director possess more than one DIN
• If the Director uses deception or fraud to obtain DIN
• Regarding the Director’s Death
• Should the Director be deemed insolvent
• In cases when the Director has been declared insolvent

2. Desirably by the DIN holder

If a director has yet to be nominated to any company or corporate body and their DIN is not being used in any document sent to regulators, they may also ask to surrender their DIN.

The director above must willingly give up their DIN in such circumstances.

3. The Director Identification Number (DIN) Surrender Process

You must submit an online application in Form RC-1 to the Ministry of Corporate Affairs’ Regional Director to give up your Director Identification Number (DIN). 

You need to send in supporting documentation with this application. In addition, a physical application known as DIR-5 must be completed and signed. 

It is intended only for surrendering a DIN by Section 153 and Rule 11(f) of the Companies (Appointment and Qualification of Directors) Rules, 2014. The DIR-5 application needs to be linked to the RD-1 after it has been filled out and signed.

4. Giving Up DIN Making use of Form DIR-5

Anyone willing to give up a DIN can use the MCA’s website to file an E-form DIR-5. DIR-5 requests that you submit the following data:

• The DIN Number that the petitioner has
• Justification for the DIN’s capitulation
• How many DINs do you want to give up, and whether the holder still has more DINs?
• The DIN number of the DIN that has to be given up
• The concerned person’s certificate of digital signature

A relative may file Form DIR-5 on behalf of the DIN holder in the event of his death if he is found to be mentally incompetent by the court or if he is insolvent.

Final Thoughts: DIN Cancellation or Surrender 

The process for surrendering a DIN is quite simple. Still, before applying for surrender using Form DIR-5, the DIN holder must make sure that the director has yet to be nominated to any position inside a business or corporate body while possessing the DIN.

The surrendered DIN has not been used in any document forwarded to a regulatory body. With the launch of the E-form DIR-5, surrendering a DIN is now quite simple, transparent, and quick.

Nonetheless, to develop timely and sufficient compliance, directors are suggested to seek the assistance of skilled professionals and keep in mind the legal requirements.

A professional services company like Lawgical Adda will help you with various legal and regulatory compliance issues. The staff at Lawgical Adda can provide thorough assistance at every stage of the Director Identification Number (DIN) surrender process. 

We can aid in ensuring that all legal requirements carry out the surrender by helping to prepare supporting documents and affidavits and filing the required paperwork. Contact us!