Whether you are an aspiring director, an entrepreneur setting up a company, or someone seeking to expand his professional horizons, obtaining a Director Identification Number (DIN) is a crucial step towards engaging in corporate governance and contributing to the business landscape in India. If you are looking to embark on a directorial journey, this article will serve as your comprehensive guide to understanding the process of registering for a Director Identification Number. We will break down the steps involved, explain the necessary documentation, and provide you with valuable insights to help you navigate the registration process smoothly and confidently.
Let’s start with the basics first!
What is DIN?
A Director Identification Number (DIN) is a unique number assigned to every director of a company by the Ministry of Corporate Affairs (MCA). The MCA issues this number to help track and manage directors of companies registered in India. It also helps the MCA verify the identity of directors and ensure that they are not involved in any fraudulent activities.
Directors Identification Numbers (DIN) was introduced by the MCA in the Companies (Amendment) Act, 2006, in Sections 266A-266G. It is an 8-digit unique identification number that has lifetime validity.
How is DIN Unique in Itself?
DIN is unique in that it can be used for a lifetime by any individual regardless of how many companies he floats. The DIN belongs to the individual, not the company for which it has been acquired. This means even if he is a director in two or more companies, he has to obtain only one DIN. And if he leaves one company and joins some other, the same DIN would work in the other company as well.
The MCA maintains a database known as the "DIN database" or the "Director Identification Number database." This database contains information about individuals who hold DINs and serve as directors of registered companies in India. The DIN database includes details such as the name of the director, their DIN, date of appointment as a director, current status of the DIN, and other relevant information. It serves as a central repository for tracking and regulating directorships in Indian companies.
What are the Advantages of a DIN for the Directors?
There are many benefits of having a DIN, such as:
Having a Directors Identification Number (DIN) in India offers several advantages to individuals serving as directors of registered companies. Some of the key benefits of having a DIN include:
- Unique Identification: A DIN provides a unique identification number to each director, which helps in distinguishing and tracking the activities of directors across different companies. It ensures better transparency and accountability in corporate governance.
- Easy Appointment: A DIN is a prerequisite for appointment as a director of a company in India. Having a DIN allows individuals to easily accept directorship positions in multiple companies without the need for repeated applications or registrations.
- Simplified Compliance: With a DIN, directors can easily fulfil their compliance obligations. They can use the DIN for filing various documents, such as annual returns, financial statements, and other regulatory filings, with the Ministry of Corporate Affairs (MCA). It streamlines the process and reduces the administrative burden on directors.
- Enhanced Credibility: Holding a DIN enhances the credibility and professional image of directors. It serves as a validation of their qualifications and eligibility to hold a directorship position in a registered company.
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- Efficient Communication: The DIN database facilitates efficient communication between regulatory authorities, government bodies, and directors. It helps in streamlining the process of exchanging information, notices, and other official communications related to the director's role and responsibilities.
- Centralized Tracking: The DIN database acts as a centralized repository for tracking the activities and directorships of individuals. It enables regulatory bodies, such as the MCA, to monitor and regulate the appointment, resignation, disqualification, and other activities of directors in Indian companies.
- Legal Protection: Directors with DINs enjoy legal protection as their identification and credentials are verified by the MCA. It helps in preventing fraudulent practices and unauthorized individuals from holding directorship positions.
Which Forms are Required for DIN applications?
Here are the details of the forms required for DIN applications in India:
SPICe Form: Anyone proposed for the position of a first director in a new company who does not have a DIN must fill out the eForm SPICe. Along with the application, the applicant must provide proof of identity and address. DIN would be assigned to the user only when the form is approved.
Form DIR-3: Anyone wishing to become a director of an existing company must apply in eForm DIR-3, together with accompanying documentation. Form DIR-3 must be signed by the applicant and digitally validated by a Company Secretary in full-time employment with the company or by the Managing Director/Director/ CEO /CFO of the existing company in which the applicant is to be appointed as a director.
Form DIR-6: If there is a change in the details supplied in form DIR-3/SPICe regarding Directors, the applicant may submit the e-form DIR-6. For example, if a director's address changes, he or she must notify the office by submitting the e-form DIR-6 together with the requisite attested document. The e-Form DIR-6 must be digitally signed by the Applicant and certified by a Chartered Accountant, a Company Secretary, a Cost Accountant in full-time practice, or a company secretary (member of ICSI)/Director of an existing company where the applicant proposes to be a director.
The above forms must be completed electronically and signed before they are uploaded to the MCA21 portal.
Which all Documents are Required While Applying for Director Identification Number?
Each e-form discussed above requires a different set of documents. The following are the required documents:
- SPICe Form
- Identity proof copy
- Residential address copy
Please note that valid ID proofs are a voter's identity card, a passport, a driver's license, or a Unique Identification Number (UIN).
DIR-3 & DIR-6 Form:
- An applicant's photograph (passport-sized)
- PAN card, if you are an Indian national. A self-attested copy of the PAN is required for confirming identity, name, father's name, and date of birth.
- If the applicant is a foreign national, please provide an attested copy of his/her passport. Proof of the father's name is not required.
- You must have a self-attested copy of your residential address proof that is not older than two months. For foreign nationals, address proof should not be older than one year from the date of filing the E-Form
Attestation of Supporting Documents for the DIN Application
Documents attached with form DIR-3 should either be self-attested or duly attested by a Public Notary or a Gazette Officer of a Government or by the Director's full-time Company Secretary, CEO, CFO, or Managing Director.
A Foreign Public Notary / Gazetted Officer in India can attest the document if the foreign director holds a multiple-entry Indian visa or an Overseas Citizen of India card.
A candidate's Digital Signature: Form DIR-3 must be signed by the candidate and confirmed by either the company secretary in a full-time position or the current Managing Director, Director, Chief Executive Officer, or Chief Financial Officer of the organization in which the candidate will be nominated as a director.
How to Apply for a DIN?
Here, we are describing the step-by-step procedure to obtain a DIN with the help of e-form DIR-3 (for directors in an existing company)-
- Download Form- DIR-3 from MCA Portal
- Get scanned copies of the requisite documents mentioned above
- Get Class 2 DSC Certificates from Certifying Authority licensed by the Controller of Certifying Authorities
- Fill out the Form- DIR-3. The form must be digitally signed by a Company Secretary in full-time employment with the company or by the Managing Director/Director/ CEO /CFO of the existing company in which the applicant is to be appointed as a director.
- On the MCA portal homepage ( Link), click the “New User” link
- Select the appropriate User category and role
- Fill in your personal and contact details.
- Enter a User ID of your choice and enter a password or select your digital signature certificate.
- Insert a hint question along with its answer. These will be used if you forget your password or to update/change your DSC later.
- For authentication, type in the randomly generated text in the box provided.
- Click on the ‘Create My Account’ button and submit the details for registration.
- Acknowledgement for successful registration would appear on the screen.
- A confirmation email will be sent to the email ID provided by you.
- Now, log into the MCA21 portal with the user Id you have received
- Click on the 'e-Form upload' link under the 'e-Forms' tab to upload the e-Form DIR-3.
- Attach your photo and attested copies of supporting documents. No physical documents are required.
- After the form is submitted, you need to pay the documentation fee for e-Form DIR-3. Payment can be made electronically (e.g., Net Banking, Debit Cards, Credit Cards, Neft /Pay Later).
- A DIN number will be generated in 3-4 business days following successful upload and payment.
- The MCA will notify you if the eForm details are found duplicate upon successful payment.
- Your e-Form DIR-3 will be prepared only after the application fee for your DIN has been paid.
The Most Common Reasons Why DIN Applications Get Rejected
It is only after the application details have been examined that a temporary DIN can be granted. A few errors could lead to your application being rejected. The following common reasons could be behind it:
- No identity proof was submitted.
- The applicant did not provide the name of his father.
- No proof of birth date was submitted.
- No proof of residential address has been submitted.
- A passport copy (for foreign nationals) was not provided.
- Application/supporting documents are invalid
- A handwritten application or evidence is enclosed.
- The application submitted is a replica DIN application, and another application of the applicant is in the approval process.
- A photograph has not been attached to the application.
- The name of the applicant on the application form does not match the name on the evidence.
- The father's name on the application form does not match the one on the evidence.
- The date of birth of the applicant on the application form does not match the date of birth on the evidence.
- There is a discrepancy between the address proofs entered in the application and the supporting evidence.
- The gender of the applicant is not accurately indicated on Form DIR-3.
- The application identification number and identity proof do not match.
- If the documents enclosed are not self-attested.
In conclusion, we would say that obtaining a Directors Identification Number (DIN) in India is a crucial step for individuals aspiring to serve as directors in registered companies. The DIN serves as a unique identification number, providing transparency, accountability, and streamlined compliance in the corporate sector. It is easy to obtain a DIN, and once acquired it should be kept up to date with any changes in personal information or contact details.
Having a valid DIN will also help simplify the process of filing taxes or other financial documents related to your business venture. Also, by maintaining a centralized database, the Ministry of Corporate Affairs ensures effective monitoring and regulation of directors' activities, safeguarding the integrity of corporate governance. Therefore, aspiring directors should familiarise themselves with the application requirements, consult the latest guidelines, and embark on the DIN registration journey to contribute to India's thriving corporate landscape.