DIR-3 KYC

DIR-3 KYC Procedure

In order to be in conformity with the Ministry of Corporate Affairs (MCA), directors of companies are required to submit DIR-3 KYC (Know Your Customer) forms on a yearly basis. This process is necessary to protect stakeholders' interests and guarantee openness in the company's management. Here at Lawgical Adda, we provide expert assistance with DIR-3 KYC submission and regulatory compliance monitoring for our clients.

The Form DIR-3 KYC's purpose

As previously stated, after 30 days of receiving the notification of DIN approval, each director is required to notify each of the companies in which they serve as a director of the DIN assigned to them in Form DIR-3B. Likewise, a company's manager and secretary are required to provide the income-tax permanent account number (PAN) to the business. Within 15 days after receiving the notification, the firm must provide the Registrar with additional information regarding the DIN of the directors using Form DIR-3C.

Crucial Points to Consider When Completing the Online Form

To guarantee a successful submission, directors should keep the following important elements in mind when completing the online application webform:

• Before completing the online form, please read the instructions and guidelines.
• Verify that you have enrolled on the MCA portal as a business or registered user.
• Possess a working cellphone number and email address that are linked to the DIN on the MCA portal.
• Have a valid DIN that is either "Approved," "Disqualified," or "Deactivated" as a result of the webform DIR-3 KYC not being filed.
• Make sure that the DIN has been filed with at least one electronic form, "Form No.DIR-3-KYC."
• Verify that the DIN for the webform "DIR-3 KYC web" is approved and has not been marked as "Payment incomplete," "Under processing," or "Approved" for the current Financial Year.
• If the DIN status is deactivated, filing will only be permitted if "Non-filing of KYC in DIR-3 KYC" is the basis for the deactivation.
• Check the OTP that was input for the email address and mobile number.
• If there is not enough room in any field, you can attach extra information to the webform as an optional attachment.
• Take note that if the KYC application is submitted by a DIN holder assigned on or before March 31st of each year, with a 'Approved' DIN status, no costs are charged if the application is submitted by September 30th.

What is the DIR-3 KYC Compliance Process? 

The director or a professional acting on the director's behalf must complete the DIR-3 KYC form online. Next, a company secretary (CS), cost and management accountant (CMA), or chartered accountant (CA) digitally signs the document. The completed form must be electronically submitted via the MCA website. 

An acknowledgement marking the process's completion will be generated upon the form's successful submission. It's crucial to remember that the DIR-3 KYC must be submitted every year by September 30 of the following fiscal year, at the latest. In the event that the regulation is broken, the DIN may be deactivated and heavy penalties may ensue. 

Steps to Comply with DIR-3 KYC

1. MCA Portal Login: The MCA portal is used by directors.

2. Access the DIR-3 KYC Form: Locate the DIR-3 KYC e-form, fill it out, and submit any necessary documents.

3. Photo Submission: Please send in a current, passport-sized photo.

4. Review and Validation: Make sure all the information is correct by verifying it.

5. Digital Signature: Use a legitimate digital signature associated with the DIN to verify your identity.

6. Submit the Form: Using the MCA site, submit the electronic form.

7. Confirmation and Acknowledgment: Get a confirmation that your KYC filing was received.

8. KYC Submission Timeline: Comply with the annual submission deadline.

9. Implications of Non-Compliance: Non-compliance affects directors' position with the company and can result in fines, legal action, and DIN deactivation. Finish KYC to preserve openness and regulatory compliance.

Records Needed for DIR-3 KYC

1. Aadhaar Card Permanent Account Number (PAN) (Voter ID, Driver's license, or Passport)
2. Passport (if it's available) (Bank statement, phone bill, or electricity bill)
3. Driving record (if available)
4. Voter ID, if it is available
5. The applicant's Digital Signature Certificate (DSC)

What happens if someone doesn't comply? 

The director's DIN may be deactivated for failing to comply with the DIR-3 KYC standard, which might have a serious negative effect on their capacity to take part in the company's management. It is implied that a deactivated DIN precludes the director from signing any legal documents on the company's behalf. Furthermore, there is a fee associated with reactivating the DIN, which is not simple. Reversing the deactivation requires submitting the required KYC data and paying a Rs 5,000 penalty.

Directors must maintain accurate KYC information and comply with the Companies Act. Directors can submit Form No. DIR-3 KYC (Web) with confidence if they follow this thorough guide. A simplified compliance process is ensured by comprehending the regulations regulating the webform, gaining access to the application, filling out the instructions carefully, and paying attention to crucial details for a successful submission.

For all of your DIR 3 KYC requirements, Lawgical Adda is the ideal option. We provide a DIR-3 KYC online filing service that streamlines and eases the filing procedure. Our team of professionals can guarantee that your application is submitted accurately and on time because they are knowledgeable about the DIR 3 KYC application process.

We offer a full DIR 3 KYC registration service, which includes examining and confirming all required documentation to make sure it complies with regulatory regulations. The entire procedure can be finished from the convenience of your home or place of business with our online filing DIR-3 KYC service. In order to help you with any questions or problems you might run into during the procedure, we also provide a devoted customer support team.