Let us invite your attention to one major confusion among the professionals nowadays about the filing of new styled e form DIR-3-KYC for the Individual has already been complied with the KYC norms introduced very first time.
Before to proceed to the core of the Article, let us brief you about the provision that the MCA has issued one notification dated 5th July 2018, to become effective from 10th July 2018, to insert one rule “Rule 12A” as the 4th amendment in the principal rules “Companies (Appointment and Qualification of Directors) Rules 2014.
The verbatim reproduction of the said new rule as under:
“12A Directors KYC- Every individual who has been allotted a Director Identification Number (DIN) as on 31st March of a financial year as per these rules shall submit e-form DIR-3-KYC to the Central Government on or before April 30th of the immediate next financial year”
The new rule mandate filing of the DIR-3-KYC by every Individual “has been allotted” a DIN on or before 31st March shall file the form on or before 30th April, however, it was not clear yet about the nature of compliance (i.e., Annual or one time only), but, in our view, the words “has been allotted” experience us about an event taken place through some act (like filing of an application), accordingly, it gives an impression that “an individual to whom fresh DIN allotted through a fresh application on or before 31st March”
Let’s understand the expression “has been allotted” through an example illustrated below:
- Mr. A; to whom DIN allotted in 1991 – In this case, Mr. A is an old Director to whom DIN was already issued through an old system and also has done with the KYC at the first time of the new norms. It’s no matter the DIN allotted either on or after 31st March of 1991.
- Mr. A; to whom DIN allotted in 2019 – In this case, Mr. A is an Individual has filed an application on or before 31st March 2019 in an e-form DIR 3 for the allotment of the DIN. The expression “has been allotted” somewhere get justified in this case.
Further, a professional has also raised a ticket on 2nd April 2019 with the MCA portal, which for the time being giving indirect clarification that filing of e-form DIR-3-KYC is not Annual compliance. The error comes while pre-fill of the DIN of an Individual who has already been done the KYC for the first time” DIR-3-KYC has already been filed for given KYC”
However, unless any communication from the MCA about the clarification over nature of compliance (i.e., Annual or One time), the compliance to be treated as Annual in nature.