Director Identification Number (DIN) : A Mandatory requirement for all the directors as per Companies Act,2013.
Director Identification Number (DIN) is a mandatory requirement for all existing and new directors (or proposed directors) of a company. A DIN is issued in accordance with the directions provided by the amendment to the Companies Act. It is an 8-digit Unique Identification Number allotted to all directors.
Sections related to Allotment of DIN under Companies Act 2013
Chapter XI – Appointment and Qualification of Directors
Section 153 – Application for allotment of Director Identification Number
This section states that everyone who is intending to be appointed as director of a company shall make an application to the Central government along with fees in the prescribed format. However, after the introduction of Companies (Amendment) Act, 2017, a proviso has been added according to which once a number is allotted to an individual as DIN by the Government, the requirement of this section is exhausted.
Section 154 – Time period specified for allotment of Director Identification Number
The allotment of such DIN must be done within one month of receiving the application under Section 153 in the manner prescribed under the Act.
Section 155 – Prohibition to obtain more than one Director Identification Number
This section prohibits a person, who has been allotted DIN under section 154, to apply for another DIN.
Section 156 – Director to intimate Director Identification Number
This section states that every director, once allotted DIN, shall intimate the same to the company or companies in which he is appointed as director, within one month of receiving the DIN.
Section 157 – Company to inform Director Identification Number to Registrar
This section makes it mandatory for every company to furnish the DINs of all its directors to the Registrar or relevant authorities of central government along with the prescribed fees and in the prescribed format, within 15 days of receiving the intimation by the director or with the additional fees and within such time period as has been specified under Section 403 of the Act.
Failure to abide by the above provision before the expiry of the time period specified under section 403 with additional fee shall result in fine of twenty-five thousand to one Lakh rupees for the company and shall attract criminal liability for the officer in default in the form of fine.
Procedure for Obtaining DIN under the Provisions of the Companies Act (2013)
- Any person intending to become a director in a new Company is required to apply for the allotment of Director Identification Number only through SPICe eform at the time of incorporation.
Any person intending to become a director in an existing company shall have to make an application in eForm DIR-3 for allotment of DIN and should follow the following procedure:
- Attach the photograph and scanned copy of supporting documents i.e. attested proof of identity and attested proof of residence as prescribed.
- Physical documents are not required to be submitted to the DIN cell.
- Form DIR-3 is mandatorily to be signed by the Applicant and which shall be verified digitally by a Company Secretary in full time employment of the company or by the Managing Director or Director or CEO or CFO of an existing company in which the applicant is intended to be appointed as a director.
- Upon upload, make the payment of filing fee of eForm DIR-3. Only electronic payment of the fees shall be allowed (i.e. Net banking / Credit Card/Debit Card/Pay later/ NeFT). eForm DIR-3 will be processed only once the DIN application fee is paid.
- After successful payment, an approved DIN shall be generated in case the details of the eForm have not been identified as potential duplicate. Provisional DIN shall be generated in case the details of the eform have been found as potential duplicate. A suitable informational message will be given to the user in this regard in the receipt.
- Verification of eForm: In case, details of eForm DIR-3 are found as potential duplicate, the same gets routed to DIN cell for back office processing. Upon approval of the form, provisional DIN becomes approved DIN and would be available for further use.
What if the application for DIN allotment is rejected?
If the application is rejected, the Central Government shall notify and provide the reason for the same. An applicant has 15 days to rectify the discrepancy. Further, if the Government is satisfied, it will grant the DIN.
Grounds for cancellation of allotment of DIN
The Central Government may cancel the allotted DIN under following grounds-
- In case of issuance of a duplicate DIN to a director, the DIN can be cancelled.
- The DIN allotted will be cancelled on the death of the respective director.
- The person has been declared of unsound mind by the court.
- If the DIN has been obtained by fraudulent basis.
- The person has been adjudicated as insolvent by the court.
Once the person has been allotted a DIN, it remains the same for the rest of his life irrespective of whether he remains a director in a company or not. However, a person can surrender his DIN to the central government by making a declaration that he has never been appointed as a director.