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


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.

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.