DIR-3 KYC: Director KYC Filing & Penalty for Non-Compliance

With the Ministry of Corporate Affairs (MCA) tightening corporate governance norms, KYC (Know Your Customer) compliance has become crucial for directors of Indian companies. Among these regulatory requirements, DIR-3 KYC filing stands out as a mandatory compliance for individuals who have been allotted a Director Identification Number (DIN).

This blog explains everything you need to know about DIR-3 KYC, the filing process, due dates, penalties for non-compliance, and why it’s essential to maintain your DIN in an active status.

Table of Contents

What is DIR-3 KYC?

DIR-3 KYC is a mandatory compliance form introduced by the Ministry of Corporate Affairs (MCA) under Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014. It is required to be filed annually by individuals who possess an active DIN, to verify their personal details with the MCA records.

Who is Required to File DIR-3 KYC?

The following individuals must file DIR-3 KYC:

Every person who has been allotted a DIN on or before 31st March of a financial year.
Even if the person is not currently a director in any company, if they hold a DIN, they must complete the KYC.
Both Indian and foreign nationals holding a DIN are required to file.

Important Note: Filing is mandatory every year, not just once.

DIR-3 KYC Due Date for FY 2024–25

For the financial year 2024–25, the last date to file DIR-3 KYC is expected to be 30th September 2025, unless extended by MCA.

There are two modes of filing based on the status of the individual:

Particulars	Form Type	Filing Requirement
If KYC was filed last year and no change in details	DIR-3 KYC Web	Online confirmation through MCA portal
First-time KYC or change in details	DIR-3 KYC Form	Online filing with DSC and verification

Information Required for Filing DIR-3 KYC

To file DIR-3 KYC, the following details/documents are required:

Basic Details:

Full Name (as per PAN)
Father’s Name
Nationality
Date of Birth
Gender
PAN (mandatory for Indian nationals)
Passport (mandatory for foreign nationals)
Present & Permanent Address
Personal Mobile Number (OTP verified)
Personal Email ID (OTP verified)

Documents:

Self-attested PAN Card (for Indian directors)
Self-attested Passport (for foreign nationals or if DIN holder is NRI)
Aadhaar Card / Voter ID / Driving License
Proof of present address (utility bill, bank statement, etc.)
Passport-size photograph

Additional Requirements:

Digital Signature Certificate (DSC) of the DIN holder
Certification by a Practicing CA/CS/CMA for DIR-3 KYC Form

How to File DIR-3 KYC? Step-by-Step Guide

Option 1: DIR-3 KYC – Online Form Filing

Use this if:

You’re filing DIR-3 KYC for the first time, or
You need to update your email, mobile number, or other details

Steps:

Log in to the MCA Portal
- Go to www.mca.gov.in
- Login using your credentials (or register if new)
Navigate to: MCA Services → Company E-Filling→ DIN Related forms → DIR-3 KYC

Fill in Details
- Personal details like Name, PAN, DOB, email, mobile, address, etc.
- Upload self-attested documents:
  - PAN (as ID proof)
  - Address proof (Aadhaar, Passport, etc.)
  - Recent passport-sized photo
OTP Verification
- Enter OTPs sent to your email and mobile number
Affix DSC & Professional Certification
- DIN holder must digitally sign the form.
- The form must be digitally certified by a Practicing CA/CS/CMA
Submit Form
- Upload and submit directly through the MCA portal
- No government fee if filed before the deadline

Option 2: DIR-3 KYC Web – Simplified Online KYC

Use this if:

You have already filed DIR-3 KYC in previous years, and
There are no changes in mobile or email

Steps:

Log in to the MCA Portal
- Go to www.mca.gov.in
- Login using your credentials (or register if new)
Navigate to: MCA Services → Company E-Filling→ DIN Related forms → DIR-3 KYC WEB

Enter DIN and Validate Details
OTP Verification
- Enter OTPs sent to the registered email and mobile number
Submit
- No DSC or professional attestation required

Key Points:

No offline or physical form submission
Both options are now 100% online
Web form = quicker & easier, if no changes
Form-based (online) = only when filing for the first time or updating data

Penalty for Not Filing DIR-3 KYC

If DIR-3 KYC is not filed within the due date, the consequences are strict:

1. DIN will be Deactivated

MCA system will mark the DIN as “Deactivated due to Non-filing of DIR-3 KYC”.
The director cannot sign any mca related form andcannot be appointed director in any other company .

2. Penalty of ₹5,000

A one-time penalty of ₹5,000 (as per Companies (Registration Offices and Fees) Rules, 2014).
DIN will be re-activated only after filing DIR-3 KYC along with payment of this penalty.

Process to Reactivate DIN

If a director’s DIN has been deactivated, the following steps must be taken:

File DIR-3 KYC Form (web form not allowed if deactivated)
Pay the penalty of ₹5,000 while uploading the form
DIN gets reactivated upon successful processing by MCA

Why is DIR-3 KYC Important for Companies?

Ensures legitimacy and transparency in corporate directorships
Prevents identity fraud and fake DIN allotments
Helps MCA maintain an accurate director database
Non-compliant directors can affect company filings like ROC filings, INC forms, etc.

Difference Between DIR-3 and DIR-3 KYC

Particulars	DIR-3	DIR-3 KYC
Purpose	Apply for a new DIN	Annual KYC of existing DIN
Filed By	Individual becoming a Director	Individual holding DIN
Filing Frequency	Once during appointment	Every financial year
Certified By	Professional (CA/CS/CMA)	Professional (for KYC Form)
Fee	₹500	Nil (if filed on time), ₹5,000 late fee.

Validity of KYC and Annual Filing Rule

Once filed, DIR-3 KYC is valid only for that financial year. It must be filed again each year before 30th September, regardless of whether any change occurred in the director’s particulars or not.

Tip: Maintain a calendar reminder every August-September to avoid last-minute delays or penalties.

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FAQs on DIR-3 KYC

1. Is it compulsory to file DIR-3 KYC if I am no longer a director?

Yes, if your DIN is still active, you must file DIR-3 KYC annually.

2. What happens if I fail to verify my OTP during filing?

The KYC will not be processed. You must reattempt with the correct email and mobile OTP.

3. Can I use my company email ID for DIR-3 KYC?

No. Only a personal email ID and mobile number are permitted.

4. Is DSC necessary for DIR-3 KYC Web form?

No. Web KYC does not require DSC if there is no change in personal details.

5. Is there a government fee for filing DIR-3 KYC?

No fee if filed within the due date. Late filing attracts ₹5,000 penalty.

6. Can a CA/CS/CMA file DIR-3 KYC on my behalf?

Yes, a professional can prepare and certify the form, but OTPs must be verified by the director.

7. I have two DINs-what should I do?

Holding multiple DINs is a violation. You should surrender the duplicate DIN immediately.

8. How long does MCA take to approve the form?

Usually same daysif submitted correctly.

9. My DIN is deactivated-can I still sign company documents?

No. Your director status is not valid unless DIN is active.

10. What if there is a change in address or mobile number?

You must file the DIR-3 KYC (Form) and not the Web version. Update all changes accordingly.

Conclusion

DIR-3 KYC may seem like a routine compliance, but failure to file it can disrupt your role as a director and attract penalties. Regular compliance is essential for maintaining an active DIN, ensuring smooth functioning of company filings, and upholding good governance practices.

Whether you’re an individual director or part of a larger enterprise, make sure you set reminders, gather the required documents early, and file your DIR-3 KYC well before the deadline. Avoid the hassle of deactivation and keep your DIN valid year after year.