9559179325 9559179325 Login
Director Identification Number (DIN) - BizAdvisors

Learning

All You Need to Know About Director Identification Number (DIN)

All You Need to Know About Director Identification Number (DIN)

The introduction of the concept of Director Identification Number was brought forth with the amendment to the Companies Act in 2006. Sections 266A to 266G of Companies (Amendment) Act, 2006 provide for the allotment of Director Identification Number to the currently existing as well as any future directors of the company. The Act mentions provisions about obtaining the DIN, the time frame for obtaining DIN, the duplicity of DIN and the penalty for any default related to it. 

What is DIN – Director Identification Number? 

DIN is a unique 8-digit identification number issued by the Central Registration Center, Central Government to all existing as well as future directors of the company. Members of a company appointed as directors before 2006 have to apply for a Director Identification Number. Members joining as a director of the company also need to apply for Director Identification Number before joining as one of the directors of the company. 

Application for Director Identification Number 

There exist three Forms for applying for DIN- 

SPICe Form  

Application to become a director in a new company is put forth through a SPICe Form. The applicant must have a DIN before joining as a director of the company. A SPICe Form has to be submitted along with the identity proof and the address proof of the applicant director. 

DIR-3 Form  

Application to become a director is an already existing company to put forth through a DIR-3 Form for allotment of DIN. A DIR-3 Form has to be submitted along with the photograph; identity proof; address proof; verification of name, date of birth, father’s name, signature, and declaration of the applicant. The applicant is also required to submit their passport in case them being foreign nationals. For any modification in the SPICe Form or the DIR-3 Form, a DIR-6 Form has to be submitted. 

DIR-6 Form  

For any change in the particulars submitted in the DIR-3 or SPICe Forms concerning Directors, regarding any event such as a change of address or any other modification, the applicant can submit e-form DIR-6.  For modification, the attested supporting document for the change is to be submitted. 

Procedure to Attain Director Identification Number 

Step 1: Application Form DIR-3 to be filed along with the mentioned attachments. 

Step 2: Documents attached along with the form are to be attested by a Chartered Accountant or a Company Secretary or a Cost Accountant in full-time employment of the company or by the Director or Managing Director or CEO or CFO[1] of the existing company. In the case of a foreign national, the attachments can be attested by the Consulate of the Indian Embassy and Foreign Public Notary. 

Step 3: Fee payment to be done in the form of electronic payment through the MCA21 Portal. The fee applicable is approx. Rs 500/-. 

Step 4: After filing the application and payment of the fee is done, if the details are not identified as potential duplicates, the Approved DIN is generated. A provincial DIN is generated in case the details mentioned are identified as a potential duplicate. 

Step 5: The applicant can correct the provided details as required which would be verified by the DIN cell and upon inspection selection or rejection of the application would take place. The applicant will be notified of the selection or rejection of the application. 

Step 6: Upon grant of Director Identification Number, the director has to inform the companies wherein he is acting as a director and further the company would inform the RoC about the same. Similar steps are to be followed to obtain a Director Identification Number for a new company, but with the help of a SPICe Form. 

Rejection of Director Identification Number Application 

Upon inspection by the DIN cell, if the documents provided with the application form are identified as possible duplicates, a provincial DIN is issued in place of an approved one. The applicant is made know of the status of the application and provided with a 15-day period to make suitable changes to the documents. Some of the common mistakes committed by applicants for rejection of application are either-  

  • Non-submission of supporting documents 
  • Invalid application or invalid supporting documents 

Authorizing Director Identification Number 

The application filed by the applicant is processed by the Central Government, Ministry of Corporate Affairs. Further, a person who is appointed as a director upon filing form SPICe (INC-32) will be issued a DIN by the approving authority (Central Registration Centre). 

Penalty on default of provisions 

Individuals in default of any of the provisions of Director Identification Number under Sections 266A to 266G of Companies (Amendment) Act, 2006, are to be fined a sum of a maximum of Rs 5000/- or in case of continuing default, an additional fine of Rs 500/- per day until the contravention continues 

Conclusion 

The Director Identification Number helps keep a check on the directors of a company and their involvement in different companies as directors. Having a life-long validity the DIN ensures transparency for a much larger period. Applying for DIN has become a basic step while incorporating a company. For any further clarifications, be sure to contact Bizadvisors. 

Read our article:Nidhi Company and its Compliances

Post Views:

3166

Related Posts

Leave a Reply

Categories

Get Expert Assistance


Subscribe Our Newsletter.

We'll never share your email with anyone else.