Allotment of Director Identification Number under the Companies Act, 2013 and Rules thereunder
Under the company Act, 2013, Section 153 to 159 are in relation to the allotment of Director Identification Number (commonly known as DIN) to Director and conditions to be satisfied for the same and penalty for Non-compliance.
Section 153 states that
“Every individual who is intended to become a director needs to apply for DIN. Application to be made in the form DIR-3 to the Central Government (CG) along with the prescribed fees (presently fees is 500 for each application)
Procedure to Apply for DIN
The following documents need to be uploaded while applying DIN:
- Photograph
- Proof of Identity
- Proof of residence
- Verification of Signature specimen (Optional)
The form DIR-03 is to be digitally signed along with the applicant by
A Chartered Accountant in practice; or
Company Secretary in practice; or
CMA in practice; or
Managing Director or Director of the company in which applicant intended to be appointed; or
CS of the company in full time employment.
Section 154 states that the CG shall allot DIN within one month from the receipt of the application after due verification.
Conditions to be complied for Director Identification Number
There are also some conditions mentioned in relation to DIN under the above said Act which are as follows:
A Person can have only one DIN;
Every existing Director shall within one month of receiving the DIN, intimate to all the companies wherein he is a director;
Every company shall, within fifteen days of the receipt of DIN from the directors, furnish all the details to the Registrar;
Every company or directors, while furnishing any returns, information or particulars required under the Act, shall mention the DIN in the return, information or particulars relating to the said director.
Change in Particulars of the Directors – DIR-6 Form:
In case of any change in the particulars of the directors, the Form DIR-06 is to be submitted to intimate the changes such as change in address, or any other details.
Penalty/Punishment for Non-compliance
If any individual/ Director of a company, contravenes any provision, shall be punishable with the imprisonment for a term upto six months or with fine upto the limit of Fifty Thousands.
And it is also stated that in case of continuing Non-compliance, punishment can be extended with a further fine upto Five hundered for every day after the first contravention.
Also if any company contravenes the requirement of furnishing DIN of the directors or other officers under section 157, the company shall be punishable with the fine which is not less than Twenty thousands, but may extend upto one lakh rupees, and
Every officer-in default of the company shall also be punishable with fine which shall not be less than twenty five thousands, but may extend upto one lakh rupees.
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About Author – Deepa Kaintura
I am a lawyer by profession. I am a legal consultant in TaxAcumen providing services to corporates about GST, Income Tax, ROC Compliances, etc. My love for finance and law encouraged me to write and share the knowledge with the readers here.
