The Unique Identity Of A Company Director As Per The Company Law

Not even the head of the nation state in a modern, vibrant, functioning democracy is immune to the law of the land and its various applications. So also, in the happening corporate world, the directors, who head and lead companies, are bound by various rules & regulations, norms & conventions, identities & formalities, as provided in the corporate laws. One significant identity possessed by any formal director is the Director Identification Number, which is abbreviated as DIN. 

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DIN – What Does It Stand For?

DIN is the unique number provided to the director of a company by the Central Government. We can also say it is a specific number provided to an individual, who directs one or more companies. DIN is specific to a person, which means even if he or she is a director in two or more companies, he or she has to obtain only one DIN. And if he or she leaves a company and joins some other company, the same DIN would work in the other company as well.

Well, DIN is made up of an 8-digit number that is valid all through, which means DIN exists until the person continues to be director of the company. Through DIN, details of the directors are maintained in a database.

The Usage of DIN

If a return, an application or any information related to a company is submitted under any law, the director signing such return, application or information will mention his DIN underneath his/her signature.

DIN Application Procedure

Whenever the application fee is paid and the application is submitted, the system will generate an application number. Central Government will undertake the application and decide the approval or rejection.

When the DIN application is approved, the central government will communicate the DIN to the applicant within one month.

In case, the DIN application is rejected, it will e-mail the the reason for rejection to the applicant and will also put the reason on the website. The applicant will have 15 days to rectify the reason. If he rectifies such reasons and is able to satisfy the central government, he will be allotted DIN otherwise central government will label the application INVALID.

The Categories For DIN: 

a)     SPICe Form: Application for allotment of DINs to the proposed first Directors in respect of New companies shall be made in SPICe form only.

b)    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 allotment of DIN.

 c) DIR-6 Form: Any changes in the particulars of the directors shall be filed in form DIR-6.

To apply for DIN, the above forms are to be filed electronically. It has to be digitally signed and then uploaded on the MCA21 portal .

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The Documents Required For DIN:

a) For SPICe Form

 Attach proof of identity and address proof. DIN would be allocated to an applicant only after approval of the form.

b) For Form DIR 3 

i)  Attachments: Photograph, Identity proof, Residence proof, Verification (Name, father’s name, present address, date of birth, text of declaration and physical signature of the applicant). In the case of foreign nationals, they are required to submit their passport as identity proof.

ii). Documents to be attested by a CA or CS or CMA:

Photograph, identity proof and residence proof must be attested by a Chartered Accountant or a Company Secretary or a Cost Accountant, in whole-time practice.

iii) In the case of foreign nationals, their documents can be attested by the Consulate of the Indian Embassy and Foreign Public Notary.

iv) 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.

 c) For Form DIR-6
For changing any details mentioned in the DIR-3 form/ SPICe with respect to Directors, then Form DIR-6 has to be submitted online. With the form, the attested supporting document is also required to be submitted

 Generation of DIN:
 

Once the application fee is paid and the application is submitted, the system will generate an application number. Central Government will process the application and decide the approval/ rejection.

If the DIN application is approved, the central government will communicate the DIN to the applicant within 1 month.

If the DIN application is rejected, it will e-mail the reason for rejection to the applicant and will also put the reason on the website. The applicant will get 15 days to rectify the reason. If he rectifies such reasons and is able to satisfy the central government, he will be allotted DIN otherwise central government will label the application INVALID.

Intimating DIN to company:

Within one month of receiving a DIN from the central government, the director has to intimate about his DIN to all companies where he is a director.  

The company will intimate RoC about DIN within 15 days from the date when the director intimates his DIN to the company.

Failure of the director to intimate DIN to the company or failure of the company to intimate RoC about DIN will result in penalties.

Reasons for Surrendering or cancelling the DIN
The Central Government may cancel the DIN due to the following reasons:

If a duplicate DIN has been issued to the director. 
DIN was obtained by wrong means
On the death of the concerned person
The person has been declared of unsound mind by the court
The person has been adjudicated as insolvent
The director can also surrender the DIN in Form DIR-5. With the form, he has to submit a declaration that he has never been appointed as a director in the company and the said DIN has never been used for filing any document with any authority. Upon verifying the e-records, the central government will deactivate the DIN.

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