Directors Identification Number or DIN is a unique 8-digit identification number assigned to directors of companies by the Ministry of Corporate Affairs (MCA) in India. The DIN is mandatory for all individuals who wish to become a director of a company in India.
In this article, we will take you through the process of obtaining a DIN, including the documents required, eligibility criteria, and the importance of an e-filing expert.
Usage of DIN
The director signing any return, application, or piece of information pertaining to a company that is required to be presented in accordance with any law must include his DIN below his signature.
Eligibility criteria for DIN:
- The applicant needs to be older than 18 years old.
- The applicant must have a valid PAN card.
- The applicant must not have been declared as a person of unsound mind by a court of law.
- The applicant must not have been declared as an undischarged insolvent.
- The applicant must not have been convicted of an offense that resulted in imprisonment for two years or more.
Documents to be Attached With the Forms
For SPICe Form
Attach proof of identity and address proof. A DIN wouldn’t be assigned to a candidate until the form is approved.
1. For the DIR-3 form
Attachments:-
- Photograph
- Proof of identity
- Verification of residence (name, father’s name, current address, date of birth, text of declaration, and applicant’s physical signature)
NOTE: Foreign nationals must provide their passport as identification in the case of this request.
2. ocuments that need a CA, CS, or CMA’s attestation:
- A Chartered Accountant, a Corporate Secretary, or a Cost Accountant who practises full-time must certify your photo, identity, and address.
3. Generation of DIN:
- The system will create an application number once the application fee has been paid and it has been submitted. The application will be processed and approved or rejected by the central government.
- If the application for a DIN is accepted, MCA will notify the applicant of the approval within a month.
- If the DIN application is denied, the denial reason will be emailed to the applicant and posted on the website. The applicant has 15 days to address the issue. He will receive a DIN if he is able to address these issues and satisfy the MCA; otherwise, the MCA will declare the application to be invalid.
4. Intimating DIN to company:
- The director must inform all of the firms where he is a director of his DIN within one month of getting it from the government.
- Within 15 days on the date the director gives the company notice of his DIN, the company will inform RoC of it.
- Penalties will apply if the director fails to inform the company of the DIN or if the firm fails to inform RoC about the DIN.
For Form DIR-6
Form DIR-6 must be submitted online to change any information pertaining to Directors that is listed in the DIR-3 form or SPICe. The attested supporting document must be submitted with the form.
Steps to apply for a DIN:
- Step 1: Log on to the MCA website and create an account. You will need to provide your basic details, such as name, email ID, and phone number.
- Step 2: After creating an account, you will need to fill out the DIN application form online. The form will require you to enter your personal details, educational qualifications, employment history, and other relevant information.
- Step 3: Once you have completed the form, you will need to upload your photograph, identity proof, and address proof. Make sure that the documents are in the correct format and size, as specified on the website.
- Step 4: Pay the DIN application fee online, which is currently Rs. 500/-.
- Step 5: After submitting the application and payment, the MCA will verify your details and documents. This process usually takes a few days, after which you will receive an email confirming the status of your DIN application.
- Step 6: If your application is approved, you will receive your DIN via email. You can then use your DIN to become a director of a company in India.
Here’s Why You Need an E-filing Expert:
Obtaining a DIN is just the first step towards becoming a director of a company in India. There are many other legal and regulatory requirements that directors must comply with, including Income Tax and GST registration, compliance with the Companies Act, 2013, and filing of annual returns and other documents with the MCA.
An e-filing expert can help you navigate these requirements and ensure that you remain compliant with the law. They can also help you save time and money by filing your documents online, which is faster and more convenient than traditional methods.
Why DIN is Important?
Appointment as a Director: The primary purpose of a DIN is to identify individuals who are appointed as directors of companies. A DIN is a mandatory requirement for anyone who wants to hold a directorship position in a company registered under the Companies Act, 2013.
Unique Identification: The DIN provides a unique identification number to each director, which helps in distinguishing and tracking individuals across different companies and their directorships. It helps maintain a transparent and accurate record of directors’ information.
Legal Compliance: Having a DIN is essential for complying with legal requirements related to directorship. It enables directors to participate in board meetings, sign legal documents, and fulfill their statutory obligations under company law.
Verification and Due Diligence: The DIN acts as a means of verification and due diligence for companies and stakeholders. Before appointing a person as a director, companies can verify the individual’s credentials, qualifications, and past directorship history by referring to their DIN.
Filing Documents and Forms: Directors are required to file various documents and forms with the Ministry of Corporate Affairs (MCA) and other regulatory authorities. The DIN is used to authenticate and verify the identity of directors while filing these documents, such as annual returns, financial statements, resolutions, and other company-related filings.
Company Transactions and Representations: The DIN is used when directors enter into transactions on behalf of the company, such as contracts, agreements, or other legal obligations. It serves as a unique identifier for directors in their official capacity.
Public Disclosure: The DIN is part of the public record and is accessible to the public. It helps in ensuring transparency and accountability by allowing stakeholders, investors, and the general public to access information about directors’ background and directorship history.
Regulatory Oversight: The DIN facilitates regulatory oversight and enforcement by enabling regulatory authorities to monitor and regulate the activities of directors. It helps in preventing fraudulent practices, ensuring corporate governance, and maintaining the integrity of the corporate sector.
Conclusion:
Obtaining a DIN is an important requirement for anyone who wishes to become a director of a company in India. The process of obtaining a DIN is relatively straightforward, but it is important to ensure that you meet the eligibility criteria and have the necessary documents in place. Additionally, engaging an e-filing expert can help you stay compliant with the law and save time and money in the long run.