DIRECTOR IDENTIFICATION NUMBER AND ITS COMPLEXITIES
THERE ARE THREE TYPES of modes of carrying on the business. These are Sole properitorship, partnership and Company. The formalities with regard to sole properitorship and partnership are comparatively less as compared to the Company Incorporation. So, here we are discussing about some matters in respect of Company.
When a person thinks to start a company, the first and the utmost thing which he requires is Director Identification Number commonly known as DIN no. There are a no. of complexities in respect of DIN no. so here we are going to discuss all about DIN and its complexities.
Requirement of DIN no.
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.
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.
Who should apply for DIN?
- Any person who is a director of a company or any who one intends/proposed to be a director of company in future needs to apply for DIN
- As per the recent amendment in the Companies Act, 1956, DIN has become mandatory for all the directors
- DIN is individual specific and not company specific, so only one DIN is required per director/person
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.
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.
Activities by Applicant Director
DIN Form (Annexure A) is on My MCA portal.
Fill the form online and submit for DIN allocation, by following steps laid down hereunder:
1. All the items against which ( * ) mark is displayed are mandatory i.e. needs to be filled in compulsorily
2. Please fill in your Name, Father's Name and Address in FULL
Forms with abbreviations will be Rejected
3. After filling the complete Form please press 'Check Form' button to verify that all the details are filled in properly
4. In case you need to change any item OR to correct any error encountered during verification, press 'Modify' button and do the corrections ELSE press 'Submit' button
5. After all the corrections are done, please do the 'Check Form' activity again, followed by pressing 'Submit' button
You will have to wait for a while to get system response
After processing, system will prompt the success or failure message
After successful processing provisional DIN will be allocated on-line and displayed in the Form, else a caution or error message will be prompted for you to take appropriate action
Please be guided by the system prompts and proceed
The MCA21 system will process the request and respond with a provisional DIN number in a PDF letter form
In case of a probable duplicate, the system will prompt 'probable duplicate' as a caution, however you have facility to press YES to proceed ahead with the DIN request. Ideally the incidence of duplicate would not arise. Duplication can happen if you have applied once, forgotten DIN or have not saved the Form for printing and now you wish to apply again.
Save and Print the Form after you are prompted with successful submission and a Provisional DIN allotted on-line
Fees for applying DIN are Rs. 100. Make the payment of DIN applied through Credit Card, Challan or online Banking. The SRN no. which will be generated after the making the payment will be written by the applicant in the box required of the DIN 1 Form.
Get the Photo and the documents attested, on behalf of which, the DIN 1 form has been filled up, from the following person
The attestation / certification of the proof of identification and address can be done by Notary, Gazetted Officer, Certified Professional (Chartered Accountant / Company Secretary / Cost Accountant) with stamp and registration number (in case of CA/CS/Cost Accountant) on the documents on behalf of which the information is filled up in the DIN 1. the documents required are:
Identity Proof (Any one of the following)
PAN Card / Driving License / Passport / Voter Id Card
2. Residence Proof (Any one of the following)
Driving License / Passport / Voter Id Card / Telephone Bill / Ration Card / Electricity Bill / Bank Statement /
3. Colored Photo Graph
Send the above printed DIN Form along with various proof(s) duly attested / certified by authorities to:
MCA DIN CELL
PDIL bhawan
A-14, sector-1 Noida
Uttar Pradesh
THE Din Cell authorities will check the application and if finds the entire required field correct and in order, will allot the applicant the desired DIN no.
Then the applicant will continue to check the status of his DIN No. on the MCA Portal on link DIN APPROVAL Status by entering his DIN No. In case the DIN No. does not get approve, there might be some mismatch of the field filled and the proofs attached or any information missing. In that case, any of such discrepancy will be shown over the portal when the applicant will check over the din approval status. But even then if he feels that there is something wrong on side of DIN Cell authorities, the applicant may call at MCA DIN Cell, the phone nos. are: 0120-6522477, 0120-06522478.
Some problems which arise while filing DIN are:
The name of applicant must be filled in Full and no abbreviation should be used. And the documents required to be attached should also contain the Name of father. If the documents attached don't contain the Father's name, the DIN form 1 may be rejected. In case the person is a foreign national, it may happen that the document does not contain the name of Father, so the foreign national are exempted from such formalities to have a document without Father's Name.
In case the foreign nation wants to have DIN no. , he is required to get his documents attested from the Notary of His own country and then to attach such notary attested documents with the Din form.
Father's Name
PROCEDURE FOR OBTAINING DIRECTOR IDENTIFICATION NUMBER(DIN)
1. Log on to www.mca.gov.in.
2. Click on the 'Obtain Director Identification' Link as encircled below.
3. After you click, a new page will open having the DIN application form, fill the details in the form.
4. After you filled the application form, click the "submit" button.
5. The DIN application with the provisional DIN number will come as a result.
6. Now, you have to take a print of the final form. It is recommended that you also save a copy of the form by clicking the circle shown in above picture.
7. You need to affix your photograph on the space provided on the form. And attach a proof of identity and a proof of residence with the form. Please note that the photo affixed on the form and the proofs attached must be certified by a Public Notary or Gazetted Officer or any certified professionals (viz. Company Secretary/ Chartered Accountant/ Cost and Works Accountant). In case of certified professional, they have to affix their stamp and registration number along with signature.
8. The form along with the above documents has to be sent to following address by ordinary post:
MCA DIN Cell
Post Box No. 03
NOIDA, Uttar Pradesh – 201 301, India
Or
The above form can also be sent by courier or registered post to the following address
After verification by MCA authorities your DIN will be confirmed.
DIN 2
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.
FEATURES OF DIN No.
· 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.
FORMALITIES OF DIN AT TIME OF INCORPORATION
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 directors' 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.
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