Know All About Director Identification Number (DIN) Under MCA

A Company is a legal entity made up of an association of people having the same goal or purpose. A company doesn’t have any physical appearance, but to run its work and affairs, some natural persons are required.

There could be several people, but directors are specially appointed by shareholders to manage the day-to-day affairs of the company. As per the Companies Act 2013, every individual who is the director of a company or who wants to be a director in a company needs to obtain the Director Identification Number (DIN).

Note:

What is DIN Number and Where is DIN Used?

Director Identification Number or DIN (MCA) is an 8-digit unique identification number, which is allotted by the central government to each individual who wants to be a director of any company or who already is a director of any company.

Once allotted, the DIN number has lifetime validity. With the DIN number government also maintains a database of all the directors. An individual can have only one DIN, but they can be the director of 2 or more companies.

DIN number (MCA) is always mentioned underneath the signature of the Director, whenever an important document, Information letter or a return is submitted under any law.

How to Apply for Allotment of DIN Number?

The Procedure to apply for the allotment of a DIN number is very simple. First of all, go through Section 153 of the Companies Act, 2013 and Rule 9 of the Companies Rules 2014, which provides the provision for applying for allotment of DIN number in MCA.

The DIN application process is to be made electronically in DIR-3. Provided that in case of a proposed director not having an approved DIN, the particulars of a maximum of three directors shall be mentioned in form no. INC-32(SPICe) and DIN may be allotted to a maximum of three directors through INC-32 (SPICe)

Go through the Following Procedure and apply it to the DIN Application:

There Are Two Forms for the Application of a DIN

Process-1

• First of all, go to the Ministry of Corporate Affairs (MCA) website, i.e. http://www.mca.gov.in/
• Now navigate to Home > MCA Services > Company e-Filing > DIN Related Forms > DIR-3 – Application for allotment of DIN.
• Fill in the details as required by the form and attach a copy of each document listed below:
  • Latest Photograph
  • Government-approved identity proof
  • Proof of residence
  • Specimen signature duly verified
• Once the filled form and all the attachments are checked again, and then sign the required documents using a Digital Signature Certificate (DSC)
• Now, these documents have to be verified digitally by the director or Company Secretary or Manager, and CEO/ CFO of the company
• Now submit the form with the prescribed fees as per the official instructions

Process-2

• SPICe + form for new companies. DIN can’t be applied through DIR-3 for first-time directors of new companies. It must be done via SPICe+ only.
• It comprises PART-A and PART-B of the SPICe+ form and other linked forms. It is a form used during the incorporation of the company. This form allowed application for 3 DIN for the directors of the new company.
• Fill all the linked forms for the incorporation, affix the DSC and upload the same.

How is DIN Number Allotted?

The central Government and its delegated authority process and authenticate the received Form DIR-3. Among other things, they consider the rules given in Section 154 of the Companies Act, 2013 and Rule 10 of the Companies Rules 2014 (Appointment and Qualification of Director) when considering DIN number allotment to an applicant.

By considering these rules and provisions, the form will be processed, and the DIN number will be allotted within a month. The central Government and its delegated authority to accept or reject the form, and in the same manner, they communicate with the applicant using electronic or any other medium of communication. The Central Government will communicate the Allotted DIN of the applicant within one month. That’s how the DIN is allotted to an individual.

What if the Application of DIN Allotment is Rejected?

If the Application form of DIN Allotment has been rejected due to the submission of any wrong or misleading information in the form. The central government permits a time limit of 15 days to rectify it. Within this given period, the person has to fill out and submit a fresh form with all the correct details.

Read Also: AGM Due Date for New Company Under Companies Act 2013

If somehow he/she failed to do that, the application form will become invalid and the fee will be forfeited.

How to Make Changes in the DIR-3 Form?

Whenever there are changes in the details provided in Form-DIR-3, the person has to inform the central government by filling in Form-DIR-6.

• Download and fill out the Form DIR 6
• Now, verify it using a Digital Signature Certificate (DSC)
• Get it digitally signed by the practising CA or CS, or CMA
• Submit it as per the given instructions

Other Provisions Related to DIN:

• Within one month of receiving a Director Identification Number, the director has to intimate about it to all the companies where he is working as a director.
• After receiving DIN from the director the company respected company has to intimate about the DIN of the director to the Registrar of Company within 15 days.
• The director shall also intimate any changes in his particulars to the company or companies in which he is a director within 15 days of such changes.

If the director or company fails to comply with these provisions within the time period, then it will be considered a contravention of the law and the responsible party will be liable to punishment under the act.

Important Update: Deactivation of Over 19 Lakh DINs by MCA

In the MCA21 Database, over 19 Lakh Director Identification Numbers (DINs) have been deactivated by the Ministry of Corporate Affairs (MCA). Total number of DINs deactivated counts to 19,40,313 as on 28.11.2019. The move has been taken due to the non-filing of the Know Your Client  (KYC). Shri Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs, clarified this in a written reply when questioned in the Rajya Sabha on December 4th.

It was further clarified by the Minister that the information about the employment details of DIN holders/directors is not available in the MCA21 Database. Minister informed the Rajya Sabha that the definition of “Shell Companies” and “Ghost Director” is not given in the Companies Act, 2013.

On the other hand, around 3,38,963 companies were disqualified under section 248 of the Companies Act, 2013 by the Registrar of Companies (ROCs) during the Fiscal Year 2017-18 and 2018-19, because they failed to file their Financial Statements or Annual Returns. Under section 164(2)(a) and 167(1) of the Companies Act, 2013, the sum of 4,24,454 directors were also ruled out in the same financial year.