In this blog post, Neha Ratakonda, a student, pursuing a Diploma in Entrepreneurship Administration and Business Laws from NUJS, Kolkata, describes the procedure to obtain a Director Identification Number or DIN in India.
Director Identification Number (DIN)
A Director Identification Number (DIN) is a unique Identification Number allotted to an individual who is an existing Director of a company or intends to be appointed as a Director of a company. The main purpose of introducing DIN was to maintain a database of the Directors of the incorporated companies and to make available the complete information regarding the Directors. In case there is a change of particulars, the Directors have to intimate the Central Government about the same, hence keeping the database updated. One of the main reasons for introducing DIN is the phenomena of Companies raising capital from the public, to subsequently vanish and the Directors becoming untraceable.
A DIN is mandatory for all Directors as well as for designated partners in a Limited Liability Partnership. DIN is also a mandatory requirement for filing most eForms with respect to the Company/Limited Liability Partnership on the MCA (Ministry of Corporate Affairs) website. A DIN contains all the particulars of the Director like Full name, Father’s name, Date of birth, Pan Card, Passport, Email address, Current and Permanent Address, photograph, etc. DIN is individual specific and not Company Specific; hence only one DIN is required per individual irrespective of the number of companies he heads as Director. A DIN not only identifies a Director but also contains information regarding his participation in the companies, past and present.
Procedure to Obtain DIN
- Pan Card Copy
- Proof of Identity
- Address Proof (Passport, Voter Id, Aadhar, Drivers License or any bill)
- Passport Size Photograph
The application is available on the Ministry of Corporate Affairs website (www.mca.gov.in):
- Application for allotment of Director Identification Number (Form DIN 1)
- Information of change in particulars of Director to be given to the Central Government (Form DIN 4)
- They also have an instruction kit available
The form is to be Downloaded and printed. The particulars of the director are to be filled in, and the required documents are to be attached. The director has to sign it and submit an affidavit along with the application.
It is to be verified and digitally signed by a full-time practising—
- Chartered accountant or
- Cost accountant or
- Company Secretary
You have to be a Registered user to submit the application. The submission can be done after payment of the prescribed fees (which is also online)
Statutory Provisions under Companies Act, 2013 and The Companies (Appointment and Qualification of Directors) Rules, 2014
Sec 152 (3) states that a DIN is mandatory for every Director.
Sec 153 and Rule 9—Procedure for application for allotment of DIN: Every individual has to make an application to receive a DIN, and that application should be made electronically in form DIR-3 to the Central Government with the fees prescribed and in the manner prescribed in the rules. Fees are prescribed under The Companies (Registration of Offices and Fees)Rules, 2014 and the website of MCA is the portal that supports the application for DIN by the eForm DIR-3. (Details of the procedure for application have been discussed above)
Sec 154 and Rule 10—Procedure for allotment of DIN: Once the form for DIN is submitted on the portal of MCA and the prescribed payment is made, a unique application number will be generated for you. The Central Government shall process the application by approving or rejecting the application and has to communicate the same to the applicant within a period of one month from the receipt of application. Such communication may be sent by post or electronically or by any other mode.
If there is any defect in the application, then Central Government will intimate the defect by posting on the website and also by sending an email. Once intimated, the Central Government would assume resubmission within 15 days with the rectification of the defect or by completing the incomplete form. The Central Government rejects the application when it is found that the defect has been rectified partially, or the information given is still found to be defective. The Central Government can also invalidate an application where it is found that no change has been made, or defects weren’t removed within the given time. In such cases, a fresh application is to be filed, and fees will not be refunded or adjusted.
Sec 155 and Rule 11—Cancellation/Surrender/Deactivation of DIN: No individual is allowed to hold more than one DIN at any given time. If he is in possession of multiple DINs, he can only keep one and will have to surrender the others.The application for cancellation or deactivation can be made to any competent authority which includes the Central Government or MCA, the Regional Director (North), Noida or any Officer authorized by him for the same purpose. Cases, when DIN is cancelled/, deactivated –
- Duplication (then one has to be cancelled, and data from both will be merged with the retained DIN)
- Obtained a DIN by wrongful or fraudulent manner. (If obtained a DIN on strength of a document not legally valid or on furnishing of any incomplete document or suppressed any material information which was supposed to be entered and on the basis of which DIN could be rejected. Also in cases where it was obtained where the wrong certification was given by giving false information or misrepresentation)
- Death of the individual
- The concerned individual has been declared as a lunatic or of Unsound mind by a competent court.
- The concerned individual was Adjudicated as insolvent.
- The concerned individual obtained the DIN but did not use it, can surrender it with an application made in Form DIR-5. In such a case, the Central Government will deactivate the DIN only after verification of e-records that such DIN has never been used for any purpose.
Rule 12—Intimation of changes in particulars of Director: Every director in the event of any change in his particulars, as stated in Form DIR-3, should intimate such changes to the Central Government within a period of 30 days of such changes in Form DIR-6. The procedure is the same as in the submitting of Form DIR-3. The DIN Cell established by Central Government will intimate the ROC. It is also the Duty of the Director to intimate the changes in his particulars to the company or companies in which he is a director within fifteen days of such change.
General Provisions Regarding DIN
Rule 2(d) provides the definition of the Director Identification Number (DIN) and also further provides that DIN includes the Designated Partnership Identification Number (DPIN) issued under section 7 of The Limited Liability Partnership Act, 2008.
Sec 157 (1): It is the duty of the company to intimate the DIN of all its directors to the ROC or other authorized officers within 15 days of receiving it from the Directors. If the company fails to do so before the expiry of the 270 days from the date of which it should have been furnished with an additional fee, the company and the defaulting officers shall be punishable with a fine of Rs. 25,000 but which may extend to Rs. 1,00,000.
Sec 158: Every person or company is to mention the DIN in the information that is required to be furnished under this act with the Company/ROC/Central Government, where the Director is referenced, where the director has signed and in all tasks undertaken by the Director.
Sec 159: If any individual contravenes the provisions of Sections 152, 155 or 156, he will be punishable with imprisonment up to a period of 6 months or fine of Rs.50,000 plus Rs.500 per day of default.