Director Identification Number (DIN)
No individual can be appointed as Director in any company without obtaining Director Identification Number (DIN). Section 153 of the companies Act, 2013 provides that every individual who wish to become a director in a company shall make application through Form DIR-3 for allotment of Director Identification Number. This is a unique numeric number which is allotted to individual through which an individual can be appointed as director in one or more companies. One individual can be allotted only one DIN during his life time.
Earlier, every individual was allowed to make application for allotment of DIN. However, due to modification by Companies (Appointment and Qualification of Directors) Amendment Rules, 2018 the application through DIR-3 can be made by that individual who wish to be a director in an existing company. It means the application for allotment of DIN shall not be made without approval of existing company in which such individual intends to become director. While for newly incorporated company DIN shall be allotted to the individual who intends to be director through the Spice+ itself and no separate application is required to be made.
Documents required for allotment of DIN
The following Documents are required for filing of Form DIR-3
Change in DIN Particulars
In case where individual has been allotted DIN and there is any change in particulars. It is duty of the individual to intimate such changes in digitally signed Form DIR-6 with relevant documents.
For example if Mr. X holds a DIN on 31st March 2022 then the DIR-3-KYC must be filed on or before 30th September 2022.
However, in case the individual desires to update e-mail address and/ or mobile number, he/ she may update the same by submitting e-form DIR-3-KYC only. This Form DIR-3- KYC shall be verified by the practicing professional like Chartered Accountant (CA) /Company Secretary (CS).
Cancellation/ Deactivation of DIN
DIN once allotted can be cancelled/ deactivated only in specific circumstances on the basis of verification of application received by the regional director. The circumstances under which the DIN can be cancelled/ deactivated are:
Activation of DIN
In case DIN has been deactivated due to non- filing of e-form DIR-3 KYC form the same can be activated after fee of ` 5000/- (Rupees five thousands only)
Consequences of Non-compliance
In case of failure to comply with the provision of DIN, the penalty may extend fee upto Rs. 50000/- (Rupees fifty thousands)