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]
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