Director Identification Number: DIN - A Complete Guide

A company or organization isn’t a physical entity but an association of people working towards the same goal. While several people may be associated with a company at a time, the shareholders elect a director, who is responsible for managing the day-to-day affairs of the organization. After the insertion of Sections 266A to 266G of Companies (Amendment) Act 2006, it became mandatory for individuals that have been appointed as the director of a company, existing or new, to obtain a Director Identification Number (DIN).

What is Director Identification Number?

Director Identification Number (DIN) refers to a unique 8-digit number assigned to all directors of an existing or a new company. Each individual that is promoted to the rank of director must apply and obtain a DIN, which shall act as an ID for all the actions they take in the future in the name of the organization.

The data recorded for the verification process of DIN is stored in a database maintained by the government. Even if the individual changes their role or switches to another company, they don’t need to apply for a new DIN as the one issued to them has a lifetime validity and it can be used for different companies without any issues. An individual can be the director of two companies while having a single DIN but will never have more than one DIN allotted to them.

Usage and Need for DIN

Any application, return, or company-related information is submitted under any law, the director signing the document mentions their DIN below their signature.

The key aspect that created the need for a DIN was that several cities across India have seen companies promise them incredible returns. However, these companies moved to different cities when it was actually time to show the results and payoff the citizens as promised. To avoid defaulters from escaping anymore, all directors of new and existing companies have been asked to apply for and get a unique DIN for themselves. The DIN will collect a series of details about the individual, all of which have been mentioned below. Read on to learn more about the details available in the government’s DIN database.

Relevant Forms for DIN

There are majorly five forms associated with DIN:

• DIR-3 Form – Application form for DIN allotment (for existing companies)
• SPICe Form – Application form for DIN allotment (for new companies)
• DIR-3C Form – Application form for DIN allotment (intimated by the company)
• DIR-6 Form - Application form for changing details submitted in DIR-3
• DIR-5 Form - Application form for surrendering DIN

All these forms must be filed electronically and must carry the digital signature before being uploaded on the MCA21 portal under the Ministry of Corporate Affairs, Government of India.

Details and Documents Required for DIN of Indian National

The details and documents mandatory for DIN application by an Indian includes:

• General Details – Name of Applicant, Father’s Name, Whether Citizen of India, Nationality, Whether Resident of India (has spent more than 182 days in India in a fiscal year), Occupation type (Self-Employed, Professional, Homemaker, Student, Serviceman), Area of Occupation (Government, Teaching, Others), Education Qualification, Date of Birth, Gender, Place of Birth, Mobile Number, Email ID, Permanent Address, Present Address, whether Present Residential Address is the same as permanent residential address, and Duration of Stay at present address.
• Clear photograph for the application in JPEG format.
• Identity Proof of the Applicant - Passport, Election/Voter ID card, Driving License, Electricity Bill, Bank Statement, Telephone Bill, or Aadhar - must be attached in the name of the applicant. You must also make sure that none of the above-mentioned documents are older than 2 months from the e-form filing date.
• Class 3 Digital Signature.

Details and Documents Required for DIN of Foreign National

The details and documents mandatory for DIN application by a foreign national includes:

• If the foreign national is from China, Pakistan, Bhutan, Myanmar, Afghanistan, Nepal, or Bangladesh, they must have a security clearance from the Ministry of Home Affairs, Government of India.
• General Details – Name of Applicant, Father’s Name, Occupation type (Self-Employed, Professional, Homemaker, Student, Serviceman), Area of Occupation (Government, Teaching, Others), Education Qualification, DOB, Gender, Place of Birth, Mobile Number, Email ID, Permanent Address, Present Address, whether Present Residential Address is the same as permanent residential address, and Duration of Stay at present address.
• Applicant’s photograph in JPEG format.
• Proof of Identity – Passport is mandatory for identity proof (self-attested also notarized and apostilled).
• Proof of Residence of Applicant – Driving license, telephone bill and bank statement can be attached. They should be in the name of the applicant only and no document should be older than one year of the e-form filing.
• All documents of foreign nationals shall be notarized and apostilled in the English language.
• Class 3 Digital Signature.
• A DSC is the digital equivalent of physical or paper certificates and is mandatory for anyone applying for a DIN. The DSC obtained will be in a USB and have a validity period of two years.
• To get a DSC, you must file an application, which will include your signature as well as identity and residence proof. All the documents submitted must be self-attested before filing or the application will be rejected.
• For NRIs or foreign nationals, self-attested copies and ID proofs must be verified or notarized by their embassy, or in case of NRIs, by the Indian Embassy.
• Once a DSC has been obtained, you can apply for DIN and register your company as well.

What is a Digital Signature Certificate (DSC)?

• A DSC is the digital equivalent of physical or paper certificates and is mandatory for anyone applying for a DIN. The DSC obtained will be in a USB and have a validity period of two years.

• To get a DSC, you must file an application, which will include your signature as well as identity and residence proof. All the documents submitted must be self-attested before filing or the application will be rejected.

• For NRIs or foreign nationals, self-attested copies and ID proofs must be verified or notarized by their embassy, or in case of NRIs, by the Indian Embassy.

• Once a DSC has been obtained, you can apply for DIN and register your company as well.

DIN Application Process

Any individual that wants to become a director of a company or apply for DIN must file an application using DIR-3 form (for existing companies) or SPICe form (for new companies). They may adhere to the following process to execute a proper filing:

• Attach scanned copies of documents (identification and residence proof) and your photograph to the form.
• A DIR-3 form that is being submitted must be signed by the applicant and digitally verified by a full-time Company Secretary, Managing Director, Director, CFO, or the CEO of the existing company where the individual is going to be appointed as a director.
• After uploading the form, pay the filing fee. You can only do so through electronic payment methods – Net banking/Credit Card/Debit Card/NEFT or ‘Pay Later’ option, which gives you seven days to make the payment for the process.
• You must register on the MCA21 portal and login using their Login ID. Once you have logged in, click on the ‘eForm upload’ link available under the ‘eForms’ tab. The DIR-3 form will only be processed after the DIN application fee is paid.
• After uploading and fee payment for the filing process, if the details uploaded are not identified as duplicate, an Approved DIN shall be generated. If the details shared are identified to be potentially duplicate, a provisional DIN will be generated.
• If the details are found to be potentially duplicate, it is sent to the DIN cell for back-office processing. If the form is approved, the provisional DIN becomes the approved DIN and is available for future usage.

How is DIN Allotted?

Once you have filed the application, the central government and its authorities authenticate and process the information provided through Form DIR-3. Along with other things in the verification process for the generation of DIN, the authorities consider the rules mentioned in Section 154 of the Companies Act, 2013 and Rule 10 of the Companies Rules 2014 (Appointment and Qualification of Director).

• While considering these rules and regulations, if the application does not contain duplicate details, the DIN will be allotted within a month.
• The Central Government and its delegated authorities hold the rights to accepting or rejecting a form and communicate to the applicant using electronics or any medium to convey any message related to the same process. The Central Government communicates the DIN within a month to the applicant.
• If a DIN application is rejected due to the submission of some incorrect details, the Central Government grants a period of 15 days to rectify the errors.
• You are then required to fill up a new form and submit it with the correct details within the allotted time to avoid going through the entire process again.
• Failing to refill a new form and file it in the due time will result in the application form becoming invalid, while the filing fee will be forfeited.
• A director can surrender their DIN by filing the form DIR-5.
• Along with the form, they have to submit a declaration that they have never been appointed as a director of any company. After submission of the application, the Central Government will verify the claims and if found accurate, will deactivate the DIN.

What if DIN Application is Rejected?

• If a DIN application is rejected due to the submission of some incorrect details, the Central Government grants a period of 15 days to rectify the errors.

• You are then required to fill up a new form and submit it with the correct details within the allotted time to avoid going through the entire process again.

• Failing to refill a new form and file it in the due time will result in the application form becoming invalid, while the filing fee will be forfeited.

Reasons for Cancelling or Surrendering DIN

If the concerned individual has been appointed as a director even once in any of the companies he has worked at, the DIN will not be deactivated and continue to be in his name as it is.

When it comes to cancelling a DIN, there are a few reasons due to which this may occur. They are:

• Fraudulent methods were used to obtain the DIN.
• A duplicate DIN has been issued to the director.
• On the death of the concerned individual.
• The concerned individual is declared as insolvent.
• The court declares the concerned individual as unsound by mind.

Conclusion

A DIN is a unique number allotted to all directors and used as a medium to obtain accurate details of individuals and stored in a secure database of the Ministry. Considering the uniqueness of the number, all the details of any individual can be cross-checked by the Ministry with ease. If you plan to start your own business or are a director without a DIN, applying for one at the earliest would be the best move to avoid any potential legal issues.