After promoters and subscriber to memorandum of a proposed company proposed directors are most important persons for a proposed company. Once, a promoter selects proposed first directors of a company, first legal step is to check whether they have a director identification number. Incorporation documentation asks to disclose name of proposed first directors of a company.
We have already discussed the law related to Director Identification Number in an earlier post here. However, we still need to understand some legal procedures as mentioned in the relevant Rules also.
Every individual intending to be appointed as director of a company shall make an application for allotment for Director Identification Number (DIN) to the Central government. [Section 153]
This application shall be made electronically in Form DIR -3 of the Companies (Appointment and Qualification of Directors) Rules 2014. [Rule 9]
Scanned copies of following documents shall be attached with this form –
- Proof of Identity;
- Proof of residence;
- Verification by applicant on Form DIR – 4; and
- Specimen signature duly verified.
Form DIR-3 shall be signed and submitted electronically by the applicant using his or her own Digital Signature Certificate and shall be verified digitally by –
- a chartered accountant in practice or a company secretary in practice or a cost accountant in practice; or
- a company secretary in full time employment of the company or by the managing director or director of the company in which the applicant is to be appointed as director.
The Form on its face suggests, Income-tax Permanent Account Name (Income-tax PAN) is mandatory in case of Indian nationals and in such case applicant details should be as per Income-tax PAN. In case the details as per Income-tax PAN are incorrect, applicant is advised to first correct the details in Income-tax PAN. The form shall verify Income Tax Permanent Accountant Number record with Income Tax Department database. In case of any failure, Director Identification Number shall not be generated.
I really have no idea, what is significance of “PAN linked DIN”? Is not it another bureaucratic hurdle to further complicate incorporation process? Why only PAN should not be sufficient?
In case of foreign nationals, their passport umber is mandatory.
Another interesting procedure in this director identification process is manual signature of the application on Form DIR – 4 while digital signature of applicant on main Form DIR – 3. This is another bureaucratic beauty of this application process.
All Director Identification Numbers allotted to individual(s) by the Central Government before the commencement of these rules shall be deemed to have been allotted to them under these rules. The Director Identification Number so allotted under these rules is valid for the life-time of the applicant and shall not be allotted to any other person [Rule 10]
Please note: I welcome your comments and feedback. This blog post is not a professional advice. Readers may share this post on social media by using buttons given here.
How to verify the specimen signature which is required to be attached to the Form DIR-3????
The person signing document must be present before the Professional verifying his signature.
This is actually verification of original person making signature, not correctness of signature.
A person can have multiple signature, then?
I repeat, this is actually verification of original person making signature.
Professional have to ensure, no signature was forged.
* Correct signature made by wrong person
* Different signature made by correct person.
Person should be correct and verified by all available documentary proof.
Further in the the Form DIR-4 which is verification of director in the form of affidavit, it is stated that the required documents have been duly certified by the respective goverment authority, can u clarify by citing statutory provision the meaning of respective goverment authority???
Please refer to DIR – 3 again. I find a note in certification there; “In case where the applicant is residing outside India the particulars have to be verified from the documents duly attested by the attesting authority as prescribed.” The relevant rule 9 of the Companies (Appointment and Qualification of Directors) Rules 2014 do not give proper insight.
I further read Rule 13 of the Companies (Incorporation) Rules 2014 discussed earlier on this blog “SIGNING OF MEMORANDUM AND ARTICLES” on 23 April 2013. I think, this Rule 13 will be helpful.
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Does it mean that every proposed director has to obtain a DSC in his or her own name and then apply for DIN in DIR3? Like if I want two directors in my existing company who doesnt have DIN, I have to obtain DSC of both the directors and then apply for DIN?Please clarify this doubt for me.
Yes. This Form DIR – 3 need to be digitally signed by applicant.
Thankyou for your post. Can I fill this form myself without seeking help from CA etc? Form is asking for all sort of details (like membership number etc) and self verifcation doesn’t seem to be working. Low budget of my startup company is forcing me to do things myself. Also how do I apply my dsc from trust key?
Yes, you can do it your self but professional assistance is advisable.
You can apply DSC online form certifying authorities.
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