11 September 2010
What is Director Identification Number (DIN)?
The Ministry of Company Affairs (MCA) has launched a major e-Governance initiative ‘MCA 21’. It envisages e-filing of all documents related to company matters on the MCA portal. Director Identification Number (DIN) is a unique identification number for an existing director or a person intending to become the director of a company. In the scenario of e-filing, DIN will be a pre-requisite for filing of certain company related documents.
1. Application for allotment of Director Identification Number Section 266A inserted by the Companies (Amendment) Act, 2006 which, has been notified by Notification No. G.S.R. 648E dated 19th Oct.’ 2006 and has come into the force w.e.f. 1st Nov., 2006. The new section provides that every-
(a) Individual, intending to be appointed as director of a company; or (b) Director of a Company appointed before the commencement of the Companies(Amendment) Act, 2006, shall make an application for allotment of Director Identification Number to the Central Government in form DIN-1.
Every applicant, who has made an application for allotment of Director Identification Number, may be appointed as a director in a company, or, hold office as director in a company till such time such applicant has been allotted Director Identification Number.
2. Allotment of Director Identification Number Section 266B has been inserted by the Companies(Amendment) Act, 2006, which provides that the Central Government shall, within one month from the receipt of the application under section 266A, allot a Director Identification Number to an applicant.
3. Obligation on the Director to intimate Director Identification Number to concerned company or companies Section 266D of the Companies (Amendment) Act, 2006 provides existing director shall, within one month of the receipt of Director Identification Number from the Central Government, intimate his Director Identification Number to the company or all companies wherein he is a director. Such intimation is required to be given in Form DIN-2.
4. Important feature of Director Identification Number Any individual who is a director or intends to become a director of a company should apply for DIN. All the directors of a company must obtain DIN.
DIN application is to be supported by identity proof of any of the following viz. PAN card, Driving License, Passport, Voter ID Card, Ration card, Electricity Bill, Bank Statement.
DIN application is also to be supported with proof of residence of the applicant director which can be any one of the following viz. Passport, Voter Id Card, Ration card, Driving license, Electricity Bill,Telephone Bill and Bank Statement.
DIN is mandatory for e-filing of forms and documents and PAN cannot be used as an alternative to DIN.
DIN is mandatory for directors of Indian companies who are not citizens of India.
DIN is not mandatory for directors of foreign company having branch offices in India.
Only a single DIN is required for an individual, irrespective of number of directorship held by him/her. All the directorships of an individual would be mapped in the database through that DIN.
Even on resignation of a director the DIN will not be cancelled.
5. Formalities to be complied with for appointment of first directors In the case of the appointment of first directors of a company, the following formalities must be complied with at the time of incorporation:- Confirm whether the proposed director is having Directors identification Number (DIN), if he is not having DIN, apply in Form DIN. No company shall appoint or re-appoint any individual as director of the company unless he has been allotted a Director Identification Number under section 266B.
Obtain consent in the plain paper and the same shall be filed with the e-form 32.
Prepare e-form 32 in respect of the first directors and file it with the Registrar supported by the consent to act as a director;
Agreement, if any, which the company proposes to enter into with any individual for appointment as its managing director or whole-time director or manager shall be filed with the registrar;
E-Form 32 may be filed within 30 days after incorporation. It is advisable to file them at the time of filing of other documents for incorporation. The registrar also insists on it to be filed at the time of incorporation.
Particulars in the Register of directors shall be entered with respect to each director immediately after the incorporation of the company.
Particulars of the Directors’ shareholding will be entered in the Register of directors’ shareholdings;[Section 307]
Information relating to the director’s interests in other companies, firms and also names of his relatives for the purpose of section 297 and 299 of the Act will be obtained. A general notice of the interests under section 299 will also be given in Form 24AA prescribed under the Companies (Central Government’s) General Rules & Forms. 1956.
Before you fill-in application for DIN be careful and please remember following common causes of REJECTIONS
* Applicant’s name and father’s name mentioned in abbreviated form. - The Name should be expanded even if the ID proof contains the name in abbreviated form.
* Mismatch in the Name and Father’s Name in DIN form with the ID (Identity) proof enclosed. - Any mismatch in Name, including spelling mistake, may lead to rejection of application. Minor spelling deviations in the father’s name may be accepted, if such deviations do not materially impact the name.
* Prefixes like Mr. / Ms. / Kumari / Shri etc. used in the applicant’s name.
* Residence proofs like: Bank Statements, Electricity Bill, Telephone Bill, Utility bills etc. submitted are older than 2 months of submitting the application for verification OR such documents are in the name of some other person, for example father or spouse.
* The supporting documents are not duly attested i.e. Name, Designation, Membership/ Practicing certificate number etc. are not clearly indicated. – If the seal/ stamp does not contain membership/ practicing certificate number, same may be recorded by hand.
* Passport / Driving License / Identity proofs etc attached are expired. – Only such documents which are currently valid should be attached.
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