Director Identification Number (DIN)

Every person who wants to become a director in a company must register for a “Director Identification Number” (DIN). One DIN is allotted to the person for their entire lifetime. However, if someone wants to become a director in two or more companies, they only need one DIN. It is mandatory for every person who is appointed as a director in any company to have a DIN. Without one, they can’t be appointed as a director of the company.

HOW TO OBTAIN DIN?

Existing Company / Limited Liability Partnership

In order to become a director for an existing company, one must apply for a DIN. This is done by submitting an e-form to the Central Government called the DIR-3. Every individual who wants to be a director of an existing company must make an application electronically in Form DIR-3, to the central government for allotment of a Director Identification Number (DIN) along with applicable fees.

New Company / Limited Liability Partnership

If a director doesn’t have an approved DIN number, the particulars of maximum three directors shall be mentioned in Form No.INC-32 (spice) and DIN may be allotted to maximum three proposed directors through Form INC-32 (spice).

Sign the Form DIR-3 electronically with a Digital Signature Certificate, have it verified by the company secretary / Chartered Accountant / Cost Accountant in full time practice.

Documents Required

• Photograph
• PAN card
• Proof of residence (bank statement/electricity bill/telephone bill (Should not older than 2 months))
• Proof of identity (Aadhar card/voter id card/driving license/passport)
• Board resolution proposing appointment of director in an existing company. (Only in case of existing Company)

Second DIN

Any individual who has a DIN will not be able to possess a second one, which are given out as identification numbers by Ministry of Corporate Affairs. If a person has a second DIN card, then the individual must surrender their second one. Individuals who have a duplicate DIN can surrender it by providing their declaration of never having been appointed as a director and that the DIN has not been used to file any document. The Central Government will verify electronically whether the individual’s statement is true before deactivating the duplicate DIN.

If the Central Government is satisfied that the application has correct details and proof, they will deactivate or cancel a person’s DIN. In following cases

• If the same person is related to two different numbers with matching data, they can be combined into one;
• the DIN was obtained in a wrongful manner or by fraudulent means;
• death of the concerned individual;
• If a person is found to not be of sound mind by a court.
• if the concerned individual has been adjudicated an insolvent.

KYC

Central governments can also deactivate the DINs of individuals if they do not file their particulars with the form DIR-3KYC in first year and through the web service DIR-3KYC-WEB on annual basis. Individuals who that doesn’t comply with the above provisions will incur a penalty of Rs. 5,000 and a daily penalty of Rs. 500 for each day that its default continues.