The director of a corporation is accountable for managing the day-to-day affairs of the corporate. he’s the one who gives directions to managers regarding any decision or about-face undertaken by the shareholders or promoters of the corporate. they will be promoters of the corporate, especially within the case of personal companies, or an employee of the corporate.
The businesses Act, 2013 also recognizes the position of director within the company and fixes the minimum and therefore the maximum number of directors allowed within the company. A director apart from the promoter could also be appointed by the corporate by passing a resolution within the general meeting. Therefore, so as to be appointed as director, a private have to obtain a Director number (DIN) after the approval from Central Government.
Director number (DIN) may be a singular 8-digit number allotted to someone who is appointed the director of an organization. The validity for such variety is for a lifetime. He/She must make an application within the shape DIR-3 (in case of an existing company) keep with Section 153 and 154 of Companies Act, 2013. However, within the case of the formation of a replacement company, the application is formed only through SPICe (Form INC-32) at the time of its incorporation. DIN remains identical for every individual irrespective of the number of companies he has served or is serving as a director. DIN application is prepared by Central Government under the Ministry of Corporate Affairs.
Uses Of DIN
Wherever there is any need for a return, filing an application, or any information related to a company under any law, then the director has to sign such return, application, or details with his DIN number underneath the signature.
Purpose Of Obtaining DIN By A Director
The basic purpose of obtaining DIN by the administrators is to urge themselves registered within the database of the govt authorities in order that they’ll identify themselves before signing a return, information, or application associated with the corporate by mentioning their DIN underneath their signature.
How To Apply For DIN?
SPICe Form: Application for allotment of DINs to the proposed first Directors in respect of recent companies shall be made in SPICe form only.
DIR-3 Form: someone desiring to become a director in an already existing company shall make an application in eForm DIR-3 for allotment of DIN.
DIR-6 Form: Any changes within the particulars of the administrators shall be filed in form DIR-6.
To apply for DIN, the above forms are to be filed online. it’s to be digitally signed so uploaded on the MCA21 portal
For SPICe Form
Attach proof of identity and address proof. DIN would be allocated to an applicant only after approval of the shape.
For Form DIR-3
Verification (Name, father’s name, current address, DOB, text of declaration, and signature of the applicant)
In the case of foreign nationals, they’re required to submit their passport as identity proof.
b. Documents to be attested by a CMA or CA or CS:
Photograph, identity proof, and residence proof must be attested by a controller or an organization Secretary, or a value Accountant, in whole-time practice.
In the case of foreign nationals, their documents are attested by the Consulate of the Indian Embassy and Foreign Public Notary.
After uploading DIR-3 and therefore the supporting documents, the applicant pays the fee within the next screen. it’s to be paid through net banking, MasterCard, or NEFT. Manual(offline) payment isn’t allowed.
c. Generation of DIN:
Once the appliance fee is paid and therefore the application is submitted, the system will generate an application number. Central Government will process the appliance and choose the approval/ rejection.
If the DIN application is accepted, the central government will communicate the DIN to the applicant within 1 month.
If the DIN application is rejected, it’ll e-mail the rationale for rejection to the applicant and can also put the explanation on the website. The applicant will get 15 days to rectify the rationale. If he rectifies such reasons and is ready to satisfy the central government, he is going to be allotted DIN otherwise the central government will label the applying INVALID.
d. Intimating DIN to company:
Within one month of receiving DIN from the central government, the director needs to intimate about his DIN to all or any companies where he’s a director.
The company will intimate RoC about DIN within 15 days from the date when the director intimates his DIN to the corporate.
Failure of the director to intimate DIN to the corporate or failure of the corporate to intimate RoC about DIN will lead to penalties.
For Form DIR-6
For changing any details mentioned within the DIR-3 form/ SPICe with regard to Directors, then Form DIR-6 must be submitted online. With the shape, the attested supporting document is additionally required to be submitted
Conditions to get DIN
Rules for obtaining DIN:
In the case of recent companies, first Directors up to a number of three can apply for a DIN number only through the SPICe plus Form.
In the case of already existing companies, the administrators can apply for a DIN number only through the DIR-3 Form.
In the case of already existing companies, the applicant director must attach a signature of any existing company director wherein he wants to induce added.
For E.g. Mr Manoj wants to use DIN wherein he wishes to be a director in ABC company. Here, Mr. Manoj would require a board resolution of “ABC’ company together with the digital signature of any of the present directors of ABC company.
Validity of DIN:
Once the DIN number is given to a Director, it doesn’t require any reactivation or renewal and has lifetime validity.
However, the MCA may deactivate or disqualify the Director if the Director or the corporate is in violation of any of the laws or, its guidelines or notifications.
How to make changes in DIN
Whenever it’s required to form any changes within the details of the DIN then it’s required to intimate such to the Central Government through filing Form DIR 6 within the MCA (Ministry of Corporate Affairs) portal. Such form DIR 6 must be verified through Digital signature Certificate (DSC) and acquired Digitally verified by Practicing CA or CS or CMA while making changes within the DIN (Director Identification Number).
What is the role of DSC in DIN?
A DSC ( Digital Signature Certificate) is within the kind of a USB which is critical for applying for the Director number (DIN) and is valid for a period of 1 to 2 years.
To obtain a DSC, you need to file an application that can include your signature and also identity proof, and residence proof. All documents that may be submitted have to be self-attested by the applicant. For foreigners and NRIs, the self-attested copies and identity proofs must be notarized by a functionary or verified by their respective embassy, or just in case of NRI, Indian Embassy verification is critical.
Reasons for Surrendering or canceling the DIN
The Central Government may cancel the DIN because of the subsequent reasons:
If a replica DIN has been issued to the director
DIN was obtained by fraudulent means
On the death of the concerned person
The person has been announced unsound mind by the court
The person has been adjudicated as insolvent
The director also can surrender the DIN in Form DIR-5. With the shape, he needs to submit a declaration that he has never been appointed as a director within the company and therefore the said DIN has never been used for filing any document with any authority. Upon verifying the e-records, the central government will turn off the DIN.
Note that, once an individual is appointed as a director in any company as per the businesses Act 2013, he cannot give up his DIN in the future. whether or not he doesn’t remain a director anymore in this company or in the other company, his DIN will exist because it is.
The process of obtaining DIN from the Central government has been made easier after the businesses Act, of 2013 by introducing eforms that application may be made only through electronic mode.
This has also resulted in an increase in transparency and speeding from the entire process. Moreover, the applicants can keep a track of their application through the MCA website and take away any discrepancy indicated by the office of the regional director.
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