Director Identification Number (DIN)- How to Obtain/Cancel/Surrender & Penal Provisions


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DIN (DIRECTOR IDENTIFICATION NUMBER)

DIN is a 8 digit unique Director Identification Number allotted to any person by Central Government who intends to become director of the company. Single DIN is allotted to a person for lifetime. If a person wants to become a director in two or more companies, he has to obtain only one DIN. It is compulsory for a person to obtain DIN before getting appointed as a director in any company. A person cannot be appointed as a director in a company unless it possess a valid DIN.

HOW TO OBTAIN DIN?

Section 153 of The Companies Act 2013 & Rule 9(1) of the Companies (Appointment and Qualification Of Directors) Rules, 2014, governs the provisions for obtaining of DIN.

According to the Section 153 of the Companies Act 2013: Every individual who wish to appointed as a director in an existing company have to mandatorily obtain din by making an application to Central Government in e-form DIR-3.

According to Rule 9(1) of the Companies (Appointment and Qualification Of Directors) Rules, 2014- Every individual, who intends to be appointed as director of an existing company shall make an application electronically in Form DIR-3, to the Central Government for allotment of a Director Identification Number (DIN) along with such fees as provided under the companies (Registration offices and Fees) Rules, 2014.

Provided that in case of proposed directors not having approved DIN, the particulars of maximum three directors shall be mentioned in Form No.INC-32 (spice) and DIN may be allotted to maximum three proposed directors through Form INC-32 (spice).

Documents required for e-form DIR 3:-

  • Photograph
  • PAN CARD(Mandatory)
  • Proof of identity(AADHAR CARD/VOTER ID CARD/DRIVING LICENSE/PASSPORT)
  • Proof of residence (BANK STATEMENT/ELECTRICITY BILL/TELEPHONE BILL(NOT OLDER THAN 2 MONTHS))
  • Board resolution proposing appointment of director in an existing company.

Form DIR-3 shall be signed and submitted electronically by the applicant using his or her own Digital signature certificate and shall be verified digitally by a company secretary in full time employment of the company or by the managing director or director or CEO or CFO of the company in which the applicant is intended to be appointed as director in an existing company.

THROUGH INC-32 (SPICE) FORM:

Any individual who intends to become director in a new company can apply for DIN through the incorporation form SPICE PLUS.

Details Required for INC 32(SPICE):

  1. PAN card of the individual
  2. Voter ID/Driving License/Passport
  3. Bank Statement/Electricity Bill/ Mobile Bill/ Telephone Bill(Not older than 2 months)

SURRENDER OF DIN:

If any individual obtains duplicate DIN then it can make application in form DIR-5 to surrender its duplicate DIN along with declaration that he has never been appointed as director in any company and the said DIN has never been used for filing of any document with any authority. The Central Government on receipt of such application may deactivate such duplicate DIN. Provided that before deactivation of any DIN in such case, the Central Government shall verify e-records.

CANCELLATION OR DEACTIVATION OF DIN:

The Central Government may upon being satisfied on verification of particulars or documentary proof attached with the application received from any person cancel or deactivate the DIN in case-

(a) the DIN is found to be duplicated in respect of the same person provided the data related to both the DIN shall be merged with the validly retained number;

(b) the DIN was obtained in a wrongful manner or by fraudulent means;

(c) of the death of the concerned individual;

(d) the concerned individual has been declared as a person of unsound mind by a competent Court;

(e) if the concerned individual has been adjudicated an insolvent

However, central government can also deactivate the DIN of an individual if it has not intimate the particulars in e-form DIR-3KYC or the web service DIR-3KYC-WEB as the case may be, within stipulated time.

PENAL PROVISIONS:

If any individual or director fails to comply with the above provisions, then it shall be liable to a penalty which may extend to fifty thousand rupees and where the default is a continuing one, with a further penalty which may extend to five hundred rupees for each day after the first during which such default continues.


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