To bring 12th Amendment to the Companies (Appointment and Qualification of Directors) Rules, 2014, Ministry of Corporate Affairs on 25th Day of July 2019 notified the Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2019 [Notification No. by GSR528(E)]. This amendment introduced a new Form DIR – 3 – KYC – WEB for annual confirmation of KYC submitted earlier. We, in this post, will discuss new provisions along with the Companies (Registration Offices and Fees) Rules, 2014.
Form DIR-3-KYC vs Form DIR-3-KYC-WEB
These two forms serving an identical purpose with similar consequences are actually for a different purpose. In brief, Form DIR – 3 – KYC is a KYC form and Form Form DIR – 3 – KYC – WEB is a KYC confirmation form.
Form DIR-3-KYC has already been discussed earlier here in detail. There is a slight amendment in these provisions. The main provision has a simple amendment:
“Every individual who has been allotted holds a Director Identification Number (DIN) as on 31st March of a financial year as per these rules shall submit e-form DIR-3-KYC for the said financial year to the Central Government on or before 30th, September of immediate next financial year.” [Rule 12A]
Additionally, Form DIR – 3 – KYC shall be used for the update of Mobile number and email address, not anything else. The third proviso to Rule 12A says:
In case an individual desires to update his personal mobile number or the e-mail address, as the case may be, he shall update the same by submitting e-form DIR-3 KYC only. [Third proviso to Rule 12A]
Please note that in case of any other update like an update of Address, Nationality, Passport number, or any other information, an individual desires to update these details shall fill and file the Form DIR – 6. The Form DIR – 6 will stay relevant against all speculation made during last one year.
This new Form is in simple words is a KYC Confirmation form.
“Where an individual who has already submitted e-form DIR-3 KYC in relation to any previous financial year, submits web-form DIR-3 KYC-WEB through the web service in relation to any subsequent financial year it shall be deemed to be compliance of the provisions of this rule for the said financial year.” [Second Proviso to Rule 12A]
This form is a simple web-based form. Its web design is simpler than notified one in the amendment rules.
One needs to enter the DIN and submit it. The Form shall check MCA database. If there is a Form DIR-3-KYC already submitted, the Form DIR-3-KYC – WEB shall display part of mobile and email address.
If the director is satisfied, he may click on send OPT (One time Password) button. If your Email or mobile given here are not accessible to the director now, Please opt to file Form DIR – 3 – KYC.
Enter both OTPs into the Form and confirm them. The System will display an auto-filled Actual Form DIR – 3 – KYC – WEB. If all details are correct, submit the form.
In case details displayed are not updated, Please use Form DIR – 6 to update information.
Once you submitted the Form DIR – 3 – KYC –WEB, a zero fee challan be generated for your reference and record.
This web-based form avoids the inconvenience of using sensitive digital signatures.
Deactivation of DIN
Provisions related to deactivation of DIN shall remain the same with the addition of a reference to Form DIR – 3 – KYC – WEB:
“Rule 11 (2): The Central Government or Regional Director (Northern Region), or any officer authorized by the Central Government or Regional Director (Northern Region) shall, deactivate the Director Identification Number (DIN), of an individual who does not intimate his particulars in e-form DIR-3-KYC or the web service DIR-3-KYC-WEB as the case may be within stipulated time in accordance with rule 12A.
Rule 11 (3): The de-activated DIN shall be re-activated only after e-form DIR-3-KYC or the web service DIR-3-KYC-WEB as the case may be is filed along with fee as prescribed under Companies (Registration Offices and Fees) Rules, 2014.”
The fee for filing e-form DIR-3 KYC or web-form DIR-3 KYC-WEB through the web service shall be payable as provided in the Companies (Registration Offices and Fees) Rules, 2014.
The Companies (Registration Offices and Fees) Rules, 2014 is also amended by the Companies (Registration Offices and Fees) Fourth Amendment Rules, 2019 on 25th July 2019 to add Form – DIR – 3 – KYC – WEB in the paid form list. There will be no fee but in case of delay, it will be Rs. 5,000/-.
“VII. FEE FOR FILING e- Form DIR-3 KYC or DIR-3 KYC-WEB under rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014:
|(i) Subject to serial number (iii) below, fee payable till the 3 0 th September of every financial year in respect of e-form DIR-3 KYC or DIR-3 KYC- WEB through web service, as the case may be, for the immediate previous financial year.||– (No Fee)|
|(ii) Fee payable (in delayed case).||Rs. 5,000|
|(iii) Fee payable if the individual failed to file e-form DIR-3 KYC or DIR-3 KYC-WEB through web service, as the case may be, for the immediate previous financial year (in delayed case).||Rs. 5,000|
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