The Ministry of Corporate Affairs (MCA) requires all directors in India to maintain a Director Identification Number (DIN). Previously, obtaining a DIN was a one-time process. However, to ensure an updated registry, the MCA now mandates annual submission of KYC (Know Your Customer) details through e-Form DIR-3 KYC, must file e-Form DIR-3 KYC by September 30th of the next financial year
(MCA) has recently introduced significant amendments to the Companies (Appointment and Qualification of Directors) Rules, 2014. These changes, which will come into effect on 1st August 2024:
Update Frequency for Personal Information
- Clause Insertion in Rule 12A: A crucial change has been made in Rule 12A, where after the word “only,” the words and figures “on or before 30th September of the financial year” have been inserted. This amendment mandates that directors must update their personal information by 30th September of each financial year.
Additional Proviso for Multiple Updates
- Proviso Addition: A new proviso has been added, which allows directors to update their personal mobile numbers or email addresses more than once within a financial year. However, to do so, they must submit the e-form DIR-3 KYC and pay a fee of INR 500. This is particularly useful for directors who may need to change their contact details due to various reasons during the year.
Annual Filing of DIR-3 KYC
- DIR-3 KYC Form: Every director is required to file the DIR-3 KYC form annually to keep their personal information up-to-date with the Ministry of Corporate Affairs. This ensures that the MCA has accurate contact details for all directors, which is crucial for communication and governance purposes.
Implementation Date
These amendments will be effective from 1st August 2024. Companies and directors are advised to take note of this date and ensure compliance with the new rules to avoid any potential penalties.
