Director of a company is the manager and head of the company after the chairperson. According to Companies Act 2013, the director of a company or who wants to be a director in a company has to obtain the Director Identification Number (DIN). In this blog, we will discuss everything about Director Identification Number (DIN).
Director and Director Identification Number (DIN)
A company runs its work and affairs by some natural persons. There are many people in the company but the director is manager and head of the company after Chairperson. Appointment of directors of a company is specially done by shareholders.
According to Companies Act 2013, the director of a company or who wants to be a director in a company has to obtain the Director Identification Number (DIN). DIN is 8-digit unique assigned by the Central Government to any individual’s intending to be a Director or is an existing director of a company. This number has lifetime validity after allotment.
Further, the government also maintains a database of all the directors with the DIN number. A person can have only one DIN but he/she can be the director of two or more companies. DIN number is always written under the signature of the Director, whenever an important document, Information letter or a return is submitted under any law.
Necessary Documents for the Application
The followings are the necessary documents for the forms:
For SPICe Form
The following document is necessary for SPICe form:
- Identity proof
- Address proof.
The DIN allotment will only take place after approval of the form.
For Form DIR-3
The following are general attachments necessary for form DIR-3:
- Photograph
- Identity proof
- Address proof
- ID for verification of Name, father’s name, address, date of birth, text of declaration and physical signature of the applicant
- Passport for identity verification of foreign nationals
Documents that needs verification by a CA or CS or CMA:
- Photograph;
- Identity proof; and
- Address proof verified by a Chartered Accountant or a Company Secretary or a Cost Accountant, in whole-time practice
- Documents verified by the Consulate of the Indian Embassy and Foreign Public Notary in case of foreign nationals
The applicant will pay the fee in the next window screen after uploading DIR-3 and relevant documents. Fee payment must be only through online mode like net banking, credit card or NEFT.
For Form DIR-6
If any changes in the details of the DIR-3 form or SPICe with respect to Directors is needed, then Form DIR-6 has to be submitted online. With this form, all the verified document is necessary to be submitted.
Procedure to apply for Allotment of DIN Number
The Procedure to apply for allotment of DIN number is very easy. The section 153 of the Companies Act, 2013 and Rule 9 of the Companies Rules 2014, talks about application for allotment of DIN number in MCA. The following are the steps to apply for allotment of DIN number:
- Visit the Ministry of Corporate Affairs (MCA) website, https://www.mca.gov.in/MinistryV2/applyfordin.html
- Go to Home > MCA Services
- Find the E-Filing section and then click on ‘Company Forms Download’ on the next page
- Find Form DIR-3 under DIN Forms Section on the next page and Download it
- After downloading, fill all the details and attach a copy of each document listed below:
- Latest Photo
- Government Approved Identity proof
- Address proof
- Verified signature
- Cross check the form and all the documents again, and then sign the necessary documents using Digital Signature Certificate (DSC)
- Next these documents have to be verified digitally by the director or Company Secretary or Manager, and CEO/ CFO of the company
- At last submit the form with fees as per the official instruction
Generation of Director Identification Number (DIN)
The application submission completes after payment of fee. After that the system will generate an application number and the central government will start processing the application to decide the approval or rejection.
Further, in the case of approval of the DIN application, within 1 month the central government will communicate the DIN to the applicant.
However, in the case of rejection of application, government will e-mail the reason for rejection to the applicant and put the same on the website. The applicant will get 15 days to rectification. If they rectify such reasons and is able to satisfy the central government, they will be get DIN. Central government will label the application invalid if applicant fails to rectify such reason.
Intimation of Director Identification Number (DIN) to Company
The director has to intimate about his DIN to all companies where he is a director after receiving DIN from the central government within one month. The company will tell RoC about DIN within 15 days from the date when the director has intimated his DIN to the company.
However, in case of failure to intimate DIN to the company by director or failure of the company to intimate RoC about DIN will result in penalties.
Reasons for Surrendering or cancelling the DIN
The DIN can be surrendered by the director and government can also cancel it on various reasons.
Surrender of Director Identification Number (DIN) by director
The director of the company can surrender the DIN in Form DIR-5. Along the form, he has to submit a declaration that his appointment as director of that company never took place. Further, the declaration shall also say that the DIN has never been used for filing any document with any authority
After the verification of the e-records, the central government will de-activate the DIN of such director.
Cancellation of DIN by Government
The following are the reasons when the Central Government may cancel the DIN:
- In case of duplicate DIN
- DIN obtained by fraudulent means
- In case of death of the concern director
- The person is unsound as per the court
- If the person gets adjudication of being insolvent
However, it is important to note that, once a person is appointed as a director in any company under the Companies Act 2013, he cannot renounce his DIN in the future. Even if he doesn’t remain a director anymore in that company or in any other company, his DIN will remain same.
Conclusion
Therefore, it is clear that the director of a company is the manager and head of the company after the chairperson. According to Companies Act 2013, the director of a company or who wants to be a director in a company has to obtain the Director Identification Number (DIN). Further, the DIN can be surrender by the director and government can also cancel it on various reasons.
