Director KYC – An update

In September 2018, MCA introduced KYC of Directors. Every person who has Director’s Identification Number (DIN) needs to do KYC by filing Form DIR-3 KYC with MCA. The KYC has to be done after the end of every financial year.

On July 25, 2019, MCA introduced web-based service for doing annual KYC of Directors known as ‘DIR-3 KYC-WEB’. The process of KYC is made simpler with this online service.

What is web-service DIR-3 KYC?

This online service enables the persons holding DIN, to do KYC without filing any form with MCA.

All persons holding DIN, whether they are directors in any company or not, and who have done their KYC in the previous financial year, have to use this web-based service to do KYC.

This service is just to verify the details of KYC of Directors submitted previously to MCA. This service can be used only if there is no update in any of the details submitted earlier.

So, in this online service there is no requirement to:

• submit copy of PAN or address proof again
• affix digital signature of director
• get the form certified by a practicing professional

Now, what if any director, who has filed KYC in previous year, wants to update the details?

In that case, the director has to file Form DIR-3 KYC (previously introduced form) with MCA to update the details.

Any person who has been newly allotted DIN has to first file Form DIR-3 KYC and then use web-based service from next financial year onwards.

Due-date:

Form DIR-3 KYC or web-based DIR-3 KYC has to be submitted on or before September 30 of immediately next financial year. E.g. due date for financial year 2018-19 is September 30, 2019.

Fees:

There is no fees if filing is done before the due date. If the form is filed after the due-date or filed for the previous years, fee of Rs. 5,000 is charged.

Update: The companies can now file pending form DIR-3 KYC and web-based DIR-3 KYC for prevous years without any filing fees under the CFSS-2020 scheme. Click here to read more on CFSS-2020. 

Here are the steps to do KYC through web-based service:

1. Login to MCA and click on ‘DIR-3-KYC-WEB’.
2. Enter your DIN.
3. Once you click submit, your email id and mobile number will appear.
4. Click on ‘Send OTP’ button.
5. Different OTPs will be received on mobile number and email id. Enter the respective OTPs and click on submit.
6. A table with all your details will be displayed.
7. Check and ensure that all the details are correct. If yes, click on ‘Submit’ button. If you wish to update details, click on ‘Cancel’ button.
8. Once you proceed, a challan will be generated in your name.

Just to reiterate, if you press ‘Cancel’ button in Step 8, i.e if you want to update or modify details submitted earlier, you need to submit form DIR-3-KYC.  Please note that once you submit web-based KYC, you cannot change the details and file form DIR-3 KYC for that financial year.

To know more about Director KYC, click here. 

In case you need any assistance with director KYC, you can write to me at kruti@cskruti.com.