The Director Identification Number, commonly known as DIN, plays a crucial role in the process of registering a company. DIN, a unique code issued by the Central Government, is essential for individuals aspiring to become directors or those already holding positions within a company. This numeric identifier is indispensable for anyone involved in incorporating or managing a company, as it helps maintain transparency and accountability in corporate governance.
In this article, we will delve into the fundamentals of DIN in company registration, shedding light on its significance, application procedure, relevant forms, and how it facilitates smoother corporate operations. Understanding and obtaining a DIN is a vital step towards ensuring the legality and integrity of your company’s leadership structure.
Meaning and Usage of Director Identification Number (DIN)
The Director Identification Number (DIN) is an identifier consisting of eight characters, which includes both alphabets and numbers. It is allocated to individuals who aspire to hold director positions in companies based in India. Obtaining a DIN in company registration is compulsory for anyone seeking a directorship in a company registered under the Companies Act, 2013, as its previous enactments.
Here’s the meaning and usage of DIN:
1. Identification:
DIN is mainly utilized for identifying company directors. Each director is assigned an identification number called a DIN. This number is linked to their information, such, as their name, date of birth, photo and address. The objective of this system is to promote transparency and accountability, in governance.
2. Legal Requirement:
As per the Companies Act of 2013 and its regulations it is illegal for someone to serve as a director of a company without obtaining a Director Identification Number (DIN). Therefore individuals who wish to become directors must apply for. Obtain a DIN in company registration before assuming their roles.
3. Application Process:
To acquire a DIN in company registration individuals need to fill out an application on the Ministry of Corporate Affairs (MCA) portal. The application requires providing details, like proof of identity, proof of address, a photograph and other personal information. Once the application is processed and verified, the MCA issues a unique DIN to the applicant.
4. Permanent Number:
A DIN in company registration is a permanent number and remains associated with the individual throughout their directorial career. It doesn’t change even if the director serves on the board of multiple companies or resigns from one or more directorships.
5. Verification:
Companies and regulatory authorities can verify the authenticity and status of a director by checking their DIN in company registration. This ensures that only eligible and genuine individuals hold directorship positions.
6. Updating Information:
Directors have the responsibility of ensuring that their DIN-related information remains current. If any changes occur, such as a change in address or personal details it is necessary for directors to update their DIN records, with the MCA promptly.
Procedure for application for allotment of DIN in Company Registration
Here’s the procedure for applying for a DIN in company registration in India:
Step 1: Obtain Digital Signature Certificate (DSC):
- Get DSC before applying for DIN. The reason behind this requirement is that the DIN application process is conducted online necessitating the use of signatures for authentication purposes.
- You can get a DSC from certifying authorities that are authorized by the Ministry of Corporate Affairs (MCA) in India.
Step 2: Create an Account on MCA Portal:
- To get started go to the website of the Ministry of Corporate Affairs (MCA) which can be found at https;//www.mca.gov.in/. If you haven’t already you’ll need to register an account on their platform. You’ll need this account to submit your DIN application.
Step 3: Fill DIN Application Form:
- Log in to your MCA portal account.
- Select “DIN Services” from the “Services” tab on the dashboard.
- Click on “Apply for DIN.”
- Fill out the DIN application form (Form DIR-3) with accurate details. The form will require information such as your name, address, date of birth, and photograph. Ensure that the information matches your supporting documents.
- Attach scanned copies of the required documents, such as identity proof, address proof, and a photograph.
Step 4: Pay the DIN Application Fee:
- Pay the prescribed DIN application fee online through the MCA portal using a secure payment gateway.
Step 5: Submission and Verification:
- After filling out the application form and making the payment, submit the form online.
- The DIN application will be verified by the authorities. If any discrepancies or issues are found, you may be asked to provide additional information or documents.
Step 6: Approval and Issuance of DIN:
- Once the application is approved and verified, the DIN will be allotted to you.
- You will receive an email notification with your DIN, and it will also be updated on the MCA portal.
Step 7: Update Other Company Records:
- After obtaining your DIN, inform the companies you wish to become a director of about your DIN.
- The companies will update their records with your DIN details.
DIN Application Process: Forms and Documentation
Director Identification Number (DIN) is a unique identification number allotted by the Central Government to any person intending to be a Director or an existing director of a company.
Here is a guide on how to apply for DIN in company registration and relevant forms.
SPICe-32 Form (Only for First Director DIN at the time of Company Registration)
For the allotment of DINs to the proposed first Directors in respect of new companies, the application shall be made in the SPICe-32 form.
DIR-3 Form
Any person intending to become a director in an already existing company shall have to make an application in eForm DIR-3 for the allotment of DIN.
DIR-6 Form
Any changes in the particulars of the directors shall be filed in form DIR-6. There are no government fees for DIR 6. The director must state why the change has been made, change the DIN and submit documentary proof, such as a new PAN card for a change of name in PAN, proof of change in address, etc.
DIR-3 KYC Form
DIR-3 KYC is a new form where directors have to update annually by 30th April, verifying their present address and other KYC.
Documents to be attached with the forms
For SPICe Form (Only for First Director DIN at the time of Company Registration)
- PAN CARD
- Address Proof of the applicant
- Aadhar Number
- Form DIR-3
a. Attachments
- Photograph
- Identity proof
- Residence proof
- Verification (Name, father’s name, present address, date of birth). In the case of foreign nationals, it’s compulsory to submit their passport as an identity proof.
b. Documents to be attested by a CA or CS or CMA
- Photographs, identity proof and residence proof must be attested by a Chartered Accountant or a Company Secretary or a Cost Accountant, in whole-time practice.
- In the case of foreign nationals, their documents can be attested by the Consulate of the Indian Embassy and Foreign Public Notary.
- After uploading DIR-3 and the supporting documents, the applicant will pay the fee in the next window screen. It has to be paid through net banking, credit card or NEFT. Manual (offline) payment is not allowed.
- Form DIR-6 (Intimation of changes in particulars of Director – Rule 12)
- For changing any details mentioned in the DIR-3 form/ SPICe with respect to Directors, Form DIR-6 has to be submitted online. With the form, the attested supporting document is also required to be submitted.
Reasons for Cancellation or Surrender of DIN
Director Identification Number (DIN) can be canceled or surrendered under certain circumstances. Rule 11 of Companies (Appointment & Qualification of Directors Rules) provides the provisions for the cancellation/surrender/deactivation of DIN in company registration.
- Issuance of Duplicate DIN: In case of issuance of a duplicate to a director, the central government may cancel the DIN in company registration.
- Obtained through fraudulent means: If a director has obtained the DIN through fraudulent means, the central government may cancel the DIN.
- Death of the concerned person: On the death of the concerned person, shall stand canceled.
- Declared unsound mind by the court: If the concerned person has been declared unsound mind by the court, the central government may cancel the DIN.
- Adjudicated as insolvent: If the concerned person has been adjudicated insolvent, the central government may cancel the DIN in company registration.
Final Thoughts
Director Identification Number, DIN in company registration is a unique identification number allotted by the Central Government of India to individuals intending to become directors or who are already directors of companies. It serves as a means of maintaining a database of director-related information and facilitates the filing of returns, applications, and information related to a company. The application process for obtaining involves filling out relevant forms and attaching necessary documents, which must be attested by a practicing Chartered Accountant, Company Secretary, or Cost Accountant.
