DIR 3 KYC Compliance

DIR-3 KYC is a yearly requirement set by the Ministry of Corporate Affairs (MCA) for anyone holding an approved Director Identification Number (DIN). Its main aim is to keep a director’s personal and contact details accurate and up to date in official records.

This process ensures that every director is traceable and their identity is verified. The process includes verifying a director’s identity, submitting correct documents, and adhering to MCA deadlines. Accurate and timely filing is crucial, as delays can create legal or administrative complications.

What is DIR-3 KYC Compliance?

DIR-3 KYC compliance is an annual identity verification process required for all individuals who hold a Director Identification Number (DIN) in India. The Ministry of Corporate Affairs introduced this requirement to ensure that only authentic and traceable individuals act as directors in companies operating under the Companies Act, 2013.

Every DIN holder must file Form DIR-3 KYC if their DIN status is “Approved”. This requirement applies even if the person is not currently serving as a director in any company. The purpose is simple: keep the government records updated and eliminate cases where inactive, fraudulent, or untraceable individuals misuse directorship credentials.

The form collects essential information such as the director’s name, phone number, PAN, Aadhar, email ID, nationality, and current address. The details must match official documents and be verified through OTPs sent to the registered email and mobile number.

DIR-3 KYC must be filed every year on or before 30th September. If the form is not submitted by the deadline, the director’s DIN is marked as “Deactivated due to Non-Filing of DIR-3 KYC, and a penalty becomes applicable. Therefore, to ensure smooth compliance and guard the director’s records, obtaining timely compliance is necessary.

Form DIR-3 KYC is the key tool for verifying and updating the identity of all DIN holders. It helps ensure that the information in MCA records is accurate, prevents misuse of director credentials, and keeps the database transparent and reliable. The key role include:

• Genuine Identity Verification: The form verifies a director’s identity through official documents and digital authentication. This ensures that every DIN is linked to a real person, with accurate and up-to-date details.
• Preventing Duplicate DINs: Annual KYC filing stops misuse or duplication of Director Identification Numbers. It ensures only legitimate directors can maintain an active, traceable DIN in the MCA records.
• Maintaining Corporate Transparency: Regular KYC updates create clear, reliable director information, reducing chances of fraud or discrepancies in corporate filings and governance. 
• Ensuring Accurate Director Database: DIR-3 KYC keeps the MCA’s director records current by updating mobile numbers, email IDs, and address information. This prevents communication gaps, reduces discrepancies, and upholds data accuracy across various corporate and legal filings.

Legal Provisions for Filing DIR-3 KYC Compliance

Legal requirements for filing DIR-3 KYC are outlined under MCA rules to ensure that directors maintain accurate identity records.

Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014

Rule 12A mandates every individual holding an approved DIN to complete annual KYC verification. It requires filing Form DIR-3 KYC within the prescribed timeline to confirm identity details and maintain an active DIN status.

Rule 11(2) and 11(3) of the Companies (Appointment and Qualification of Directors) Rules, 2014

These provisions outline the requirement to update director particulars and specify the responsibility of DIN holders to ensure correctness. They authorize the MCA to deactivate DINs when KYC obligations or identity updates remain unfulfilled.

Companies (Registration Offices and Fees) Rules, 2014

These rules define the fee structure and charges applicable for delayed filings. When a DIN is deactivated due to non-compliance, the rules prescribe the mandatory fee payable for reactivation through the submission of overdue KYC forms.

DIR-3 compliance plays a vital role in keeping every director’s identity and contact details accurate and up to date. It protects corporate records, prevents regulatory discrepancies, and maintains seamless participation in statutory filings and governance processes.

• Ensures DIN Remains Active: Regular filing keeps the DIN active and prevents automatic deactivation. An active DIN is necessary for signing company documents, participating in board processes, and carrying out all legally recognized responsibilities as a director.
• Avoids Operational Interruptions: Filing DIR-3 on time prevents delays in corporate processes. An inactive DIN can hold up reporting, approvals, and submissions that need a director’s verified signature.
• Avoids Legal and Financial Penalties: Failure to file leads to monetary penalties and the need for corrective measures. Meeting the annual requirement prevents punitive fees and eliminates avoidable compliance burdens for directors and the companies they represent.
• Ensures Clear Regulatory Records: Regular DIR-3 filing keeps the director database accurate and verifiable. Updated information simplifies audits, inspections, and regulatory checks by confirming the identity of responsible individuals.
• Maintains Reliable Communication: Validating mobile numbers and email addresses ensures official notices reach the right director. This prevents errors, missed updates, and delays in responding to compliance requirements.

Eligibility for filing Form DIR-3 KYC applies to individuals holding an approved DIN, regardless of their current role or association with any company. The requirement ensures that all DIN holders maintain verified and updated identity information each financial year.

• Individuals holding an approved DIN must complete an annual KYC filing.
• Directors in any registered company are required to submit KYC.
• DIN holders without any current directorship must still comply.
• Foreign nationals possessing an Indian DIN must file a yearly KYC.

To file DIR-3 KYC, directors must provide self-attested and professionally certified identity and address documents that match MCA requirements. These documents are used to verify the director’s identity and confirm personal information.

• PAN Card
• Aadhar Card
• Passport (mandatory for foreign nationals)
• Current address proof (bank statement, electricity bill, etc.)
• Email ID and mobile number (for OTP verification)
• DSC of the director
• DSC and details of the professional (CA/CS/CMA)

The DIR-3 KYC filing process involves identity verification, documentation, digital authentication, and submission on the MCA portal. Each step must be completed accurately to ensure the director’s information remains valid and compliant with statutory requirements.

• Download the Form: Obtain the latest DIR-3 KYC form from the MCA website and ensure the version is current before beginning the entry of personal details and uploading the required supporting documents.
• Enter Personal Information: Fill in the director’s name, identity particulars, nationality, address, mobile number, and email ID carefully, ensuring every detail exactly matches the information available on official identity records.
• Attach Verified Documents: Upload self-attested and professionally certified documents such as PAN, Aadhar, address proof, and passport if applicable, and confirm that all attachments are clear, accurate, and fully aligned with MCA requirements.
• Complete OTP Verification: Verify the mobile number and email address using the OTPs generated on the MCA system, ensuring both contact details are active, accessible, and correctly linked to the director’s current identity information.
• Sign and Submit Online: Affix the director’s DSC, obtain professional certification from a CA, CS, or CMA, and upload the form on the MCA portal. Once submitted, download and retain the acknowledgment

There is no fee for filing DIR-3 KYC if it is submitted within the annual deadline. However, if the DIN has been deactivated due to late submission, a mandatory fee must be paid to reactivate it. In addition, professional certification fees may apply depending on whether a CA, CS, or CMA assists with verification and submission.

DIR-3 KYC Filing Timelines

DIR-3 KYC must be filed every year. The usual deadline is 30th September. The MCA generally opens the filing window in April. This gives directors enough time to update their details and complete verification at a comfortable pace. Filing on time keeps your DIN active and avoids penalties. If you miss the deadline, the DIN can be deactivated. Reactivating it then requires paying a fee. Submitting on time ensures directors can continue statutory filings and approvals without any interruptions.

DIR-3 KYC remains valid for one financial year and must be renewed annually to maintain an active DIN. Directors filing for the first time or making changes must use the DIR-3 KYC form. Those whose details remain unchanged can complete the process through the simplified DIR-3 KYC-Web option. Regular renewal ensures the director’s information stays current in the MCA records and prevents interruptions in statutory filings or corporate approvals.

Penalties for Non-Compliance

Failure to file DIR-3 KYC within the prescribed deadline results in automatic DIN deactivation and financial penalties. The consequences affect both the director’s active status and the company’s ability to complete filings requiring authenticated signatures.

• DIN becomes inactive until filing and penalty payment.
• Mandatory INR 5,000 fee applies for delayed KYC submission.
• Director cannot sign statutory documents with a deactivated DIN.
• Corporate filings may face delays due to inactive director credentials.

Corpseed is a top consulting firm that helps directors complete their DIR-3 KYC quickly, accurately, and without last-minute stress. We manage the entire process from document checks to MCA filing so your DIN stays active and compliant throughout the year.

• Expert Guidance: Our team understands MCA rules, KYC formats, and annual timelines, ensuring your filing is error-free, updated, and fully compliant.
• End-to-End Support: We manage every step, including document collection, form preparation, and final filing, ensuring your approval moves smoothly.
• Regulatory & Documentation Assistance: We thoroughly verify identity proofs, contact details, and DIN status so your KYC stays valid and never risks rejection.
• Proactive Monitoring: We track deadlines, MCA alerts, and filing status, ensuring you never face DIN deactivation due to missed updates.
• Dedicated Compliance Team: Our specialized team handles director-related filings daily, reducing mistakes and saving you time on paperwork.
• Fast Turnaround: With streamlined systems, your DIR-3 KYC gets completed quickly, without delays or repeated document issues.