DIR-3 KYC : Government mandates filing of KYC for directors in a bid to eliminate shell companies

Must Read

President Ram Nath Kovind appoints new governor for Kerala, Telangana, Himachal Pradesh and Maharashtra

President Ram Nath Kovind appointed new governors for Maharashtra, Kerala, Telangana, Rajasthan, and Himachal Pradesh on Sunday. https://twitter.com/ANI/status/1168037199767457792 Former Union Minister Kalraj...

NRC list for Assam released; Fear looms as 19 lakh people face exclusion

NRC (National Register of Citizens) for Assam has been published at 10 am today. The final list excludes over...

Lateral Entry Era Begins as Union govt. appoints 9 professionals to Joint Secretary posts

The government has appointed its first batch of private professionals to the post of Joint Secretary in various ministries....
Kriti
Business news author and curator at The Indian Wire.

In a bid to eliminate shell companies and update the governments registry of company directors, The Ministry of Corporate Affairs in a notification has directed all directors who have been allotted a Director Identification Number (DIN) on or before 31 March, 2018 to submit their KYC details, as part of the Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2018 which into effect on July 10, 2018.

Every director with a DIN number, irrespective of their current administrative status, need to submit the DIR-3 KYC form by August 31, 2018. This means that even a director who is currently disqualified but holds a DIN needs to file the form. Those who have been allotted their DIN number on or after 1 April, 2018 need to submit the e-KYC for by 30 April, 2019.

Once the due date for filing the form passes, the government will deactivate the DIN of those directors who have not yet submitted their KYC details. The DIN can be reactivated by submitting the form along with a penalty of ₹5,000 by 1 September, 2018.

In the future, all directors who are allotted a DIN as on 31st March of a financial year will be required to submit the e-form to the government on or before 30th April of the upcoming financial year.

While filling the form, the directors will have to provide their personal mobile number and e-mail ID, which will be verified via OTP authentication. The director will also have to furnish his or her PAN, Aadhar, permanent residential address, and passport, if owned.

In case of foreign nationals, providing passport information is mandatory, along with an attested copy of their passport and proof of residence.

The form also needs to be digitally signed and verified by a practising chartered account or company secretary.

The plan is part of the governments initiative to eliminate shell companies and fraudulent directors, as it has been found that dishonest businessmen often nominate their drivers or household help as board members of their companies.

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

Rajkummar Rao’s starrer movie ‘Made in China’ trailer is out

Rajkummar Rao's upcoming comedy Hindi film Made in China trailer is out and people are getting excited for the...

‘Plea of democracy’ : Hong Kong activists urge US Congress to pass bill against human rights abuses

Washington DC, Sep 18: Leaders of pro-democratic Hong Kong movement has on Tuesday appealed directly to United States lawmakers to pass legislation to fight human...

Dr. Harsh Vardhan shares progress-card of Ayushman Bharat; says hospitals involved in fraudulent acts would be “named and shamed”

Speaking to the media on Tuesday, Union Health Minister Dr. Harsh Vardhan said that the government would come down heavily on those found indulging...

Delhi High court transfers 2G case to special judge Ajay Kumar Kuhar

In a new development to the 2G case, Delhi High Court has transferred the 2G case to the court of special judge Ajay Kumar...

Aam Aadmi Party to launch “Dalit outreach” program ahead of Delhi polls; targets to visit 5,500 Dalit Bastis

In a bid to win the heart of Delhi-voters, Aam Aadmi Party has come out with its new program. This time, the party is...
- Advertisement -

More Articles Like This