Reactivation of DIN
Director Identification Number (DIN) is a mandatory requirement for all existing and new directors (or proposed directors) of a company. A DIN number is issued under the directions provided by the amendment to the Companies Act. It is an 8-digit Unique Identification Number allotted to all directors. It has lifetime validity.
Checkpoints for filing the e-form DIR-3 KYC
- Every Directors unique personal mobile number and email address will have to be provided while filing the e-Form. This number and email address will be verified by an OTP (one time password).
- The second check implemented here would be that the director has to use his own digital signature while filing the e-Form.
- Further, the third test to ensure that complete and right information is provided will be that the e-Form should be certified by a practicing Chartered Accountant or Company Secretary, or Cost and Management Accountant.
Reactivation of DIN
There was a large number of directors across the country who were disqualified on the MCA portal owing to the provisions of Section 164(2)(a) of the Companies Act, 2013.
But a new update has come from the side of MCA which has been a breather for all those who were affected by the provisions of Section 164(2)(a). The MCA has updated that all such disqualified DIN that is eligible for being reactivated after 31st October 2021 has been reactivated on the MCA portal. It also means that the disqualification period of all such defaulting directors is over now and they are eligible to become directors in any company from now onwards.
Reasons for disqualification
These are some reasons for disqualifications of DIN:
- Conviction of any offence which involved imprisonment up to Seven Years or More.
- Any offence or delinquency committed by the person in connection with the Related Party Transactions (RPTs) during the preceding five years.
- If the person or his/her company has not filed, the Financial Statements or Annual Returns for any continuous period of three financial years.
- Found guilty of any irregularities related with the repayment of accepted deposits, redemption of any debentures, payment of due interest on the deposits or debentures, etc. For One Year or More.
- Non-compliance with the provisions stipulated in Part I of the Schedule V of the Indian Companies Act, 2013.
- And, any clauses of disqualification for appointment as a director, given in the Articles of the employing private company.
Reactivation of DIN has made the process of filing application for DIN a lot easier through e-forms. since the application and fees are electronically filed the process is quick, smooth and transparent. Moreover , the companies can now keep a track of the application until the allotment of DIN. If you have any doubt regarding this, you can contact company suggestion.