Updated as on August 27, 2020
We all know that the Government allocates a unique number for each purpose, for instance, a Passport number (for nationality), a PAN (for tracing one’s income), an Aadhaar number (for residents in India), etc. In the same way, in this article we would discuss about a unique number to identify Directors of company/(ies).
DIN(Directors Identification Number) is a unique Identification Number allotted to an individual who is desirous of being appointed as a Director of a Company. This unique number holds personal details of the concerned Director (such as Name, Residential Address, etc) and also the past and present professional engagements of an individual in capacity of Director of company/ companies.
Amongst other pre-requisites, DIN is also a pre requisite for appointment as a Director in any company. Now, you could be looking for your appointment as a Director in the following two instances:
Instance 1: To be appointed as a Director in an existing company, or
Instance 2: To be appointed as a Director in proposed company i.e. a Company initiating its incorporation process
In Instance 1, an individual can apply for DIN by submitting an electronic Form i.e Form DIR-3 along with their KYC documents with the Ministry. In this case, the Form is submitted by the desirous director using his digital signatures (DSC).
In Instance 2, a consolidated incorporation application is submitted on behalf of the proposed Company in Form SPICe+, wherein a maximum of 3 individuals can apply for DIN.
E-form DIR-3 (for DIN application) is required to be digitally signed by the applicant i.e. Resident or Non- Resident. Thus, the individual has to primarily apply for a DSC. Once the applicant has a DSC in hand, it has to be associated on the Ministry of Corporate Affairs’ portal and thereafter, it can be used to digitally sign the DIN application form.
When an application is made for DIN of a Non-Resident, some confusion always creeps in as to documents required and their mode of execution and authentication such as:
-Whether PAN is mandatory when applying for DIN of a Non-Resident (NR)?
-As father’s name is mandatory for DIN, what if father’s name is not mentioned in the Passport?
-What if an individual does not have a last name?
-What kind of documents acceptable towards address proof of a NR?
We have summarised the answers to above questions and the requirements for DIN application (e-form DIR-3) for a NR applicant.
PAN: PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. PAN Card* is mandatory to obtain DIN for all Indian Nationals. (It is not mandatory for foreign nationals). However, the same shall be mandatory in case the Non-Resident is required to have PAN under Income Tax Act / Rules (of India), for example where the NR is in India for employment, etc.
*Every person, whether resident or non-resident, who is a Director/Managing Director/Chief Executive Officer/ Principal Officer (Whole Time Director or Chief Financial officer) in Indian Company that has a financial transaction exceeding INR 2,50,000/- in a financial year will have to compulsorily obtain Permanent Account Number (PAN).
Identity proof: A copy of Passport is a mandatory requirement for proof of identity for Foreign National. Notarised and/ or Apostilled copy (as per the law of residence of NR) of the passport should be attached. It is to be ensured that the details entered in DIR-3 match exactly with the details printed on the identity proof.
Address proof like a Notarised and/ or Apostilled copy of passport, driving license or utility bills like electricity bill, telephone bill should be in the name of the applicant only and should not be older than 1 year (2 months for residents) from the date of filing of the e-form.
In case of foreign nationals, wherein proofs are in a language other than English, the proofs should be translated in English from a certified translator or a notary public of home country, under its seal.
Mentioning father’s name: The identity proof of the applicant (Resident or Non-Resident) to be attached in form DIR-3 should evidence same father’s name as mentioned in the form. However, the same is not required in the case of foreign nationals/NRIs. Further, it is mandatory to enter either father’s first name or father’s last name.
In case the name of a person (applicant) does not have a last name, then his or her father’s or grandfather’s surname shall be mentioned in the last name along with the declaration in Form No. DIR-3A.
Refer to Rule 9(4) of the Companies (Appointment and Qualification of Directors) Rules, 2014, for the format of Form DIR-3A: Companies (Appointment and Qualification of Directors) Rules, 2014.
Board resolution proposing his/her appointment as director in an existing company.
In case of foreign nationals, while submitting the residential address, in case you do not have PIN Code, enter ‘NA’.
Certification of form DIR-3: Such form needs to be certified by either Company Secretary of the Company or Director or other officer, of the Company in which the appointment is proposed.
The Ministry has also come up with an Annual attempt to confirm/ update the details provided by Directors in their DIN Applications. This is done by completing with E-KYC verification on annual basis for personal details of directors.
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