FORM DIR 3 KYC – REASON OF REJECTION
It could be so stressful that missing a simple annual form and finding your Director Identification Number (DIN) deactivated. DIR-3 KYC helps you avoid this .
DIR-3 KYC is a mandatory yearly compliance requirement for all directors of Indian companies, stated by the Ministry of Corporate Affairs (MCA). Personal and professional details are verified and updated by the government to ensure transparency in corporate governance.
The DIR-3 KYC form requires directors to provide:
- Personal details like name, date of birth, and PAN
- Aadhaar for identity verification
- Current contact (email and mobile number)
- Professional details including company affiliation
The DIN remains active, if directors submit DIR 3 KYC in prescribed time and helps avoid penalties, and ensures smooth compliance with MCA regulations. In short, it’s a small step that saves you from a big headache!
Common Reasons for DIR-3 KYC Rejection
Filing DIR-3 KYC is an important compliance requirement for Directors of Indian companies. Every director has to complete their KYC annually as mandated by MCA. However, due to avoidable errors many directors face rejection. Understanding these reasons can save time and effort.
DIR-3 KYC Rejection Checklist
| Reason for Rejection | Explanation | How to Avoid |
| Personal Details are incorrect | Name, DOB, or PAN doesn’t match government records | Cross-check details with PAN, Aadhaar, and MCA portal |
| Non linkage of Aadhaar-PAN | Aadhaar is not linked with PAN | Link Aadhaar with PAN before submission |
| Expired or Blurry Documents | The documents Uploaded are unreadable or outdated | Upload clear, valid, and recent documents |
| Invalid DSC (Digital Signature Certificate) | Using expired or unauthorized DSC | Use a valid Class 2 or 3 DSC registered in your name |
| Contact Information is incorrect | Email/mobile number mismatch with Aadhaar | Update current email & mobile linked with Aadhaar |
| Deactivated or Pending DIN | KYC cannot process if DIN is deactivated | Check DIN status on MCA portal and reactivate if needed |
| Mismatch with MCA Records | Minor spelling differences or formatting errors | Verify details exactly as per MCA portal |
| Incomplete Form | Mandatory fields or attachments missing | Fill all fields and upload all required documents |
| Date Format is incorrect | Wrongly entered DOB or document dates | Use DD/MM/YYYY format for all dates |
| Wrong File Format or Size | Files are too large or not in PDF/JPG/PNG | For file type & size follow MCA guidelines |
| Multiple Submissions | Submitting KYC more than once in a year | Submit only once . |
| Local IDs are used by Foreign Nationals | Passport or foreign ID not submitted | Submit valid passport or approved foreign ID |
| Legal Scrutiny of DIN is undergoing | DIN involved in legal issues or MCA scrutiny | Resolve pending legal matters before filing |
| Errors in Portal | MCA portal session expired or facing technical glitches | Submit during off-peak hours and save the form locally |
Deadline for DIR-3 KYC Filing Extended by MCA
The Ministry of Corporate Affairs (MCA) make announcement on extension for submitting e-Form DIR-3 KYC and web-form DIR-3 KYC-WEB. Directors can now without incurring any late fees can file their KYC forms until October 31, 2025.
This is mentioned in General Circular No. 05/2025, dated October 15, 2025, following the earlier General Circular No. 04/2025 dated September 30, 2025.
Directors who have not yet completed their KYC can now without being charged the penalty for late filing submit their Director Identification Number (DIN) KYC forms.
The decision approved by the Competent Authority, aims to ensure compliance and provide relief to directors who face technical or procedural difficulties in filing their KYC forms .
MCA’s Big Change to Director KYC: From Annual to Triennial
The MCA has amended the Director KYC (Know Your Customer) framework under the Companies (Appointment & Qualification of Directors) Rules, 2014. These updates were mentioned in the Companies (Appointment and Qualification of Directors) Amendment Rules, 2025 dated 31 December 2025 and will be effective from 31 March 2026.
Under this notification, directors are required to file DIR 3 KYC WEB once in three consecutive financial years instead of annually.
The due date for filing is on or before 30 June of the year immediately following the third financial year.
Key highlights of the notification include:
- Switch from annual to triennial compliance: Form DIR-3 KYC-WEB is now required to file by every individual holding a Director Identification Number (DIN) as on 31 March only once in every three consecutive financial years, on or before 30 June of the immediately following third financial year
- Compulsory update on change of details: Irrespective of the three-year cycle,
any change must be reported by filing DIR-3 KYC-WEB within 30 days of such change. - Single integrated form: Single Form DIR-3 KYC-WEB will be used for periodic compliance, updates to contact details, and DIN reactivation.
ADVANTAGES OF FILING DIR 3 KYC ON TIME
- DIN deactivation would be avoided
- Avoid penal provision.
- Mitigate the risk of delay in annual filings
- Enhance professional reputation
- Helps in smooth MCA communication through updated records of directors.
- Maintain credibility and professional reputation.
- Helps in preventing operational mismanagement.
Conclusion
DIR-3 KYC is not merely a statutory formality but a crucial annual compliance under the Companies Act, 2013. It ensures that accurate and updated records of all directors are maintained by Ministry of Corporate Affairs (MCA) for promoting transparency, accountability, and good corporate governance.
Timely filing helps directors avoid DIN deactivation, penalties and disruptions in company operations. On the other hand, non-compliance can lead to unnecessary penalties and compliance hurdles for both the director and the company.
Therefore, every director should give priority to DIR-3 KYC and make sure it is completed within the prescribed due date. Staying compliant with such statutory obligations safeguards professional credibility and ensures smooth operations.
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