Complete Guide to ROC DIR-3 KYC E-Verification
ROC DIR-3 KYC e-verification is a mandatory compliance requirement for all Directors holding a valid Director Identification Number (DIN). The Ministry of Corporate Affairs (MCA) introduced this process to update the KYC details of every director and prevent the misuse of DIN. Complete Guide to ROC DIR-3 KYC E-Verification Failure to comply with the e-verification process can result in severe penalties and even the deactivation of the DIN.
In this blog, we’ll cover everything you need to know about ROC DIR-3 KYC, including the due date for 2024, penalties for non-compliance, and the long-term consequences if the KYC is not completed.
What is ROC DIR-3 KYC E-Verification?
The ROC DIR-3 KYC (Director Identification Number KYC) e-verification is a mandatory annual compliance filing introduced by the Ministry of Corporate Affairs. Complete Guide to ROC DIR-3 KYC E-Verification This process is applicable for every individual who holds a DIN and ensures that the MCA database is updated with the latest contact and personal information of each director. It aims to establish the authenticity of DIN holders, reduce fraudulent activities, and ensure that every registered director’s credentials are verified.
The e-verification includes details like:
- Personal Information: Name, Father’s Name, Date of Birth, PAN, etc.
- Contact Information: Address, Mobile Number, and Email ID.
- Identity Proof: PAN Card, Passport, Aadhaar, and other relevant documents.
- Director Status: Active or Disqualified.
Who Should File ROC DIR-3 KYC?
Every director holding a valid DIN as of the 31st March 2024 must file the ROC DIR-3 KYC for the year 2024-25. This requirement is applicable whether or not the director is actively associated with a company. Even disqualified directors must comply with this e-verification.
Important Note: If a director has previously filed DIR-3 KYC and there are no changes in their KYC details, they can opt for DIR-3 KYC WEB, which is a simpler version of the form.
Due Date for ROC DIR-3 KYC for 2024
Complete Guide to ROC DIR-3 KYC E-Verification The due date for filing ROC DIR-3 KYC e-verification for the year 2024 is 30th September 2024. All directors are required to update their KYC details on or before this date to remain compliant.
Why is the due date crucial?
Missing the due date will not only lead to penalties but can also impact your directorship status. After the due date, the DIN status changes to “Deactivated” and requires reactivation with a hefty penalty.
Penalties for Not Filing ROC DIR-3 KYC Before 30th September 2024
If you miss the 30th September 2024 deadline, the following penalties and consequences will apply:
- Late Filing Penalty: A penalty of ₹5,000 will be levied for each late filing. This fee is mandatory and cannot be waived under any circumstances.
- DIN Deactivation: Your DIN will be marked as “Deactivated due to non-filing of DIR-3 KYC” and will remain deactivated until the KYC is completed along with the penalty payment.
- Additional Compliance Burden: If the DIN is deactivated, the director will not be able to perform any official activities as a company representative, including signing documents, attending board meetings, or filing other MCA forms.
Long-Term Consequences: Deactivation of DIN after 5 Years
If you continuously fail to verify your KYC for five consecutive years, your DIN will be permanently deactivated by the authorities. This means:
- Director Status Loss: You will lose your status as a director, and the company’s compliance will be affected.
- Inability to Associate with Any Company: You will be restricted from being associated with any company as a director or signing authority.
- Reactivation Process: Reactivating a DIN after such a long-term deactivation can be a complex and time-consuming process, often involving court interventions and stringent scrutiny.
How to File ROC DIR-3 KYC E-Verification: Step-by-Step Process
Follow these steps to complete your ROC DIR-3 KYC before the due date:
- Log in to the MCA Portal: Go to the MCA Portal and log in using your credentials.
- Download Form DIR-3 KYC: Download the latest version of the DIR-3 KYC form from the MCA website.
- Fill in the Required Details: Enter your DIN, name, father’s name, nationality, and other mandatory details. Ensure all information matches with your identity documents.
- Enter the Mobile Number and Email ID: Complete Guide to ROC DIR-3 KYC E-Verification Provide a unique mobile number and email ID. These will be verified using an OTP.
- Upload Digital Signature: The form must be digitally signed by the director using a valid Digital Signature Certificate (DSC).
- Certification by a Professional: The DIR-3 KYC form must be certified by a practicing Chartered Accountant, Company Secretary, or Cost Accountant.
- Submit the Form: Once filled and signed, submit the form on the MCA portal.
- Acknowledgment: After successful submission, you will receive an acknowledgment receipt confirming your KYC compliance.
Simplified Process: DIR-3 KYC WEB
If your KYC details have not changed since your last filing, you can opt for the DIR-3 KYC WEB form. The process is as follows:
- Log in to the MCA Portal.
- Click on the DIR-3 KYC WEB option.
- Enter your DIN and complete the OTP-based verification.
- Submit the form online.
This simplified process does not require digital signatures or certification by a professional.
Common Mistakes to Avoid While Filing DIR-3 KYC
- Using Duplicate Email or Mobile Numbers: Each director must use a unique email ID and mobile number. Using the same contact details for multiple directors will lead to rejection.
- Incorrect Digital Signature: Make sure the digital signature matches the name in the DIN records. An expired or invalid DSC will cause submission failure.
- Mismatched Personal Information: Ensure that all personal details, like PAN and address, match with your official documents.
- Skipping Professional Certification: If you are filing the full DIR-3 KYC form, certification by a CA, CS, or Cost Accountant is mandatory.
How to Reactivate DIN After Deactivation?
If your DIN is deactivated due to non-filing of DIR-3 KYC, you can follow these steps for reactivation:
- Download and Fill DIR-3 KYC: Download the form from the MCA portal and fill in the required details.
- Pay the Penalty: Pay the late filing penalty of ₹5,000.
- Submit the Form: Submit the form along with the proof of penalty payment.
- Get DIN Reactivated: After verification, your DIN will be marked as “Active” again.
Conclusion
The ROC DIR-3 KYC e-verification is a crucial compliance requirement for every director. Missing the due date not only results in hefty penalties but also affects your status as a director. Complete Guide to ROC DIR-3 KYC E-Verification Make sure to complete your KYC before 30th September 2024 to avoid any complications.
If you need assistance or professional help to complete the ROC DIR-3 KYC process, it is always recommended to consult a certified professional to ensure error-free compliance. Stay compliant and keep your DIN active to maintain your directorship without any legal hassles!
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