DIR 3 KYC – All Myths Busted

I hope everyone reading this post have done DIR 3 KYC recently during the Fin. year 2018-2019. Due to the ambiguity and non availability of new forms most of them formed an opinion that DIR 3 KYC is a one time affair. I have always held the opinion that KYC like in Banks is a repetitive process and its time again to do it.

On 13th of April 2019 MCA also issued a message on its portal stating that DIR 3 KYC is a yearly process and all people who have an active DIN are supposed to be doing the KYC filing every year.

Click to access DIR3KYCcompleteMessage_13042019.pdf

Since the new form has not been deployed in the MCA system the original due date no longer exists now and 30 days from the date of deployment would be the new due date.

So all the Directors of Companies / Partners in LLP / Others holding active DIN Numbers get ready for another round of compliance.

Inputs and suggestions can be sent to ca.praveen@prsrglobal.com


Filing GST returns without late fees

The GST department has given a respite to all the registered businesses who haven’t filed the GST returns.

Late fees on delayed filing of GST returns has been waived from July 2017 to September 2018.

This is a golden opportunity for all the defaulting businesses to set right their records and move forward.

Updation of KYC for your DIN

As part of updating its registry, MCA would be conducting KYC of all Directors of all companies annually through a new eform viz. DIR-3 KYC to be notified and deployed shortly. Accordingly, every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status, would be mandatorily required to file form DIR-3 KYC on or before 31st August,2018. While filing the form,the Unique Personal Mobile Number and Personal Email ID would have to be mandatorily indicated and would be duly verified by One Time Password(OTP). The form should be filed by every Director using his own DSC and should be duly certified by a practicing professional (CA/CS/CMA). Filing of DIR-3 KYC would be mandatory for Disqualified Directors also.

After expiry of the due date by which the KYC form is to be filed,the MCA21 system will mark all approved DINs (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason as ‘Non-filing of DIR-3 KYC’. After the due date filing of DIR-3 KYC in respect of such deactivated DINs shall be allowed upon payment of a specified fee only, without prejudice to any other action that may be taken.

Form 11 – Filing of Annual Returns

Every LLP registered has to file LLP Form 11 within 60 days of end of the Financial Year, hence 30th May will be the due date for filing of this form.

In case of any delay there is an additional fees of Rs.100 per day payable till the day of filing without any upper cap. Since there is no upper cap on the additional fees it is very important to comply with the provisions.

The filing of LLP annual return is very simple and general details about the firm is to be filled up here.

Certification from Company Secretary is required if the total contribution from the partners exceed Rs.5o Lakhs or if the turnover of the LLP exceeds Rs.5 Crores, in other cases only the signature of the Designated partner is sufficient.



Changes in GST w.e.f 15/11/2017



5 Important changes with effect from 15th November 2017 pursuant to the decisions taken in the 23rd meeting of the GST Council at Guwahati.


  1. Eating out will be cheaper (Standalone Restaurants Only) – 5% will be the GST irrespective of whether the restaurant is Air Conditioned or not. Input tax cannot be claimed. 
  2. For Restaurants in hotel premises the GST rate will be 5% provided that the room tariff doesn’t exceed Rs.7500 per day.    Input tax cannot be claimed.
  3. For Restaurants in hotel premises where the room tariff exceeds Rs.7500 the the GST rate will be 18% however Input tax can be claimed.
  4. For Outdoor Catering the GST rate will be 18% with full Input tax credit.
  5. GST on admission charges to protected monuments will be exempted.

Changes in Income Tax Website w.e.f 22.09.2017

To enable effective communication between the tax payer and the income tax department the income tax portal has made certain changes. Anyone logging in to the income tax portal after 22.09.2017 have to fill in a form before accessing any facility in the portal.

Change #1 : Bank Account Details – Data of one of the bank account is now made mandatory.

Change #2: Email Ids & Mobile No : Single Mobile No. or Email Id cannot be used for more than 3 logins which was earlier 10. The problem now is any email id or mobile number which has been used earlier for more than 3 numbers is not being allowed. Hence change of number or email id has become imperative. Hopefully the department will change this requirement to allow atleast registration for 3 ids.

Change #3: OTP verification : it is not just sufficient to fill in the form but now you also need to approve the details of the mobile number / email id by authenticating it using an OTP that will be sent to email / mobile .

Click on this link to know more Update Profile Details


Appointment of Auditor

Appointment of auditor  – First Auditor

  • To be done by the Board of Director within 30 days of incorporation of the company.  If Board fails to appoint auditor then Extra Ordinary General Meeting (EGM) shall be called for within 90 days and auditor shall be appointed.
  • Tenure shall be from the date of appointment till the end of the First AGM


Appointment of auditor  – Subesequent Auditor

  • To be appointed at the AGM
  • Tenure shall be for 5 years block period subject to ratification at the AGM


Steps :

  1. Intimate the auditor regarding the intention of the company to appoint him or her as the statutory auditor of the company and ask whether he is eligible and not disqualified to be appointed as auditor of the company.
  2. Obtain letter of consent for the auditor
  3. Call board meeting
  4. Approve appointment of auditor in the first meeting
  5. Intimate the appointment of first auditor to the MCA within 30 days of board meeting in Form No. ADT 1
Please email any concerns at mrpraveenca@gmail.com about this posting and take advice of your CA / CS before acting on the content of this blog.

Compliance for Private Limited Companies


ATTENTION: Over 4 Lakh Companies have been struck off by ROC and over 1 Lakh directors will be made directors in default. 

The main reason for these directors to be called defaulting is non compliance with basic ROC Compliance. Few of the compliance that needs to be considered are as follows:

  1. Appointment of Statutory Auditor and filing of Form ADT 1 [has to be filed within 15 days of appointment] – Know More
  2. Preparation of financial statements at the end of the Financial Year [31st March of every year] and getting the same audited by a Chartered Accountant.
  3. Filing of annual returns with ROC in Form MGT 7 – [Due date within 6 months of end of Financial year which is 30.09.2017] – Has to be filed within 30 days of AGM
  4. Filing the audited annual statements with the ROC in Form AOC 4 – Has to be filed within 60 days of AGM.

Each of the above compliance will be elaborated in the posts to come.

Please email any concerns at mrpraveenca@gmail.com about this posting and take advice of your CA / CS before acting on the content of this blog.


Incorporation of a Private Limited Company

Steps involved in incorporation of a new private limited company – these steps are applicable only if the number of promoters are less than 7.

Step No.1 – Obtain Digital Signature Certificate (DSC) : Every director / shareholder is required to obtain a DSC. There are many vendors available generally DSC will be done through either sify or emudhra.

Step No.2 – Obtain Director Identification Number (DIN) : Every person wishing to act as director in a company should obtain DIN. A Certification from Chartered Accountant or Company Secretary or other authorised professionals will be required to file the same. PAN Card copy, DIR 4 declaration, Photo of the director and an address proof has to be attached with this form. Generally the number gets generated immediately.

Step No.3 – Filing of Name Approval Form (this is an optional step but most of the professionals take this route) : A minimum of 1 name and a maximum of 6 names can be provided in this form in order of priority. The ROC will check the name availability and give an approval generally communicated via email.

Step No.4 – Preparation of documents – Following documents has to be prepared.

  1. DIR 2
  2. INC 10
  3. INC 8
  4. INC 9
  5. Declaration for director
  6. Address Proof and ID proof of the proposed promoters

Most of the documents require certification from a Practising professional like a Chartered Accountant etc. Kindly consult before taking any decisions.