Rule 12A of Companies (Appointment and Qualification of Directors) Rules 2014 requires completion of Directors' KYC for every individual holding a DIN.
Purpose: To ensure that the information in the database of Directors Identification Number (DIN) is up-to-date and accurate.
Timeline: Directors are required to complete their KYC within 30 days of receiving an email from the Ministry of Corporate Affairs (MCA) regarding the same. Subsequently, the DIN of the Director will be marked as 'Deactivated' in case of non-compliance.
Penalty: If a Director fails to complete their KYC within the specified time, their DIN may be marked as 'Deactivated' by the MCA.In order to reactivate the DIN, the Director will have to pay a penalty of INR 5,000.
Form: The KYC process is completed online by filing Form DIR-3 KYC.
Reporting Authority: The Ministry of Corporate Affairs (MCA) is the reporting authority for this requirement.
Other Details:The Director's KYC must be completed on an annual basis.The KYC process involves providing personal details, address proof, PAN card details, and a digital signature certificate (DSC) to the MCA.
