Director Identification Number (DIN) [Section 152(3) and Section 153 TO 159]
DIN is an identification number allotted by the Central Government to any person who is going to be appointed as director or to any existing director of a company.
It is an 8-digit number and contains the detailed information about the director of the company.
Further the DIN shall be called as the Designated Partner Identification Number (DPIN) when it is referred to in relation to any Limited Liability Partnership.
Requirement of DIN
No person shall be appointed as a director of company unless he has been allotted the DIN.
Filing of Application for allotment of DIN [Section 153]
Every individual who is going to be appointed as director of a company shall make an application for allotment of DIN to the Central Government in the prescribed form with prescribed fees.
Procedure for making an application for allotment of DIN before appointment, Rule 9 of Companies Rule, 2014:
- Every person who is going to be appointed as director of an existing company shall make an application electronically in Form DIR-3, to the Central Government along with prescribed fees.
- The Central Government provides an electronic system for submission of application for allotment of DIN through the portal of Ministry of Corporate Affairs.
- The applicant can download Form DIR-3 from the portal, fill in the required particulars, verify and sign it after attaching copies of the following documents, scan, and file all the documents electronically-
- Identity proof;
- Residence proof;
- Signatures duly verified.
Form DIR-3 can be submitted electronically by the applicant using his/ her Digital Signatures Certificate.
- In case the name of the 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 declaration (explained in written about the surname) in Form DOR-3A.
Allotment of DIN
The Central Government shall allot the DIN to the applicant within one month from the receipt of application.
Procedure for rejection of allotment of DIN, Rule 10 of the Companies Rule, 2014:
- Generation of application number: On the submission of the Form DIR-3 on the portal and on payment of the prescribed fees, an application number shall be generated by the system automatically.
- Communication of issue of DIN: After generation of application number, the Central Government shall process the applications received and the decide for the approval or rejection for the DIN and thereafter communicate the same to the applicant along with DIN allotted on case of approval by way of letter by post or electronically or in any other mode within a period of 1 month.
- In case of defective/ incomplete application: If the Central Government, on examination of the application finds it incomplete or defective, it shall give intimation of the same by placing it on the website and by sending an email to the applicant who has filed such application.
The applicant is given a period of 15 days to rectify the defects or incompleteness by resubmitting the application.
The Central Government shall also-
- Reject the application and direct the applicant to file a fresh application with proper and correct information.
- Treat and label such application as invalid incase the defects are not removed.
- Inform the applicant either by way of letter or electronically or in any other mode.
- In case of rejection or invalidation of application, the fees so paid with the application shall neither be refunded nor adjusted with any other application.
Prohibition on obtaining more than one DIN
No individual, who has already obtained a DIN, cannot apply for the DIN again.
Director to intimate DIN
Every existing director shall intimate his DIN to the company within 1 month of the receipt of DIN.
Company to inform DIN to registrar
Every company shall within 15 days of the receipt of intimation of DIN of all the directors shall provide the same to the registrar or any other authority as may be specified by the Central Government with the prescribed fees.
Punishment for failure to provide DIN to Registrar
If any company fails to provide the DIN to Registrar, it shall be liable to a penalty of Rs. 25,000. In case of continuing failure, penalty of further Rs. 100 for each day after the first. Penalty can reach to a maximum of Rs. 1,00,000.
Further every defaulting officer of the company shall be liable to a penalty of minimum Rs. 25,000 and in case continuing failure, penalty of Rs. 100 for each day after the first which may increase to a maximum of Rs. 1,00,000.
Obligation to indicate DIN
Every person filing return, providing information or particulars are required to mention the DIN in such return or information.
Punishment for contravention of Section 152, 155 and 156 [Section 159]
If any individual or director of a company makes any default in complying with any of the provisions in relation to having more than one DIN and does not intimate Din to the company is prescribed time limits, shall be liable to a penalty up to Rs. 50,000 and if it continues, penalty with increase up to Rs. 500 each after the first one.
Disclaimer: The above-mentioned cases are illustrative and not exhaustive. This article is only for discussing general issues and hereby we do not express any opinion or give any consultation in whatsoever manner understood. The cases may differ from assessee to assessee. We recommend you to take expert advice depending upon your particular case.