Importance of Maintaining an Active DIN and Penalty for Deactivation
Introduction
A Director Identification Number (DIN) is not just an ID.
It is the legal identity of a director under company law.
If a DIN becomes inactive or deactivated, a director practically loses the power to act, sign, or represent a company.
This blog explains why maintaining an active DIN is crucial and what penalties apply if it is deactivated.
What Is DIN
DIN is a unique number allotted to an individual who wishes to become a director of a company.
It is issued and regulated by the Registrar of Companies under the Companies Act, 2013.
A DIN remains valid only when all related compliances are fulfilled.
Why Maintaining an Active DIN Is Important
1. Mandatory to Act as a Director
An active DIN is required to:
Be appointed as a director
Continue as an existing director
Sign ROC forms
Authorise company filings
If DIN is inactive, the director becomes legally powerless.
2. Essential for ROC and MCA Filings
All ROC forms require:
Valid and active DIN
Digital Signature linked to DIN
If DIN is deactivated:
AOC-4 cannot be filed
MGT-7 / MGT-7A cannot be filed
Other event-based filings fail
One inactive DIN can block the entire company’s compliance.
3. Required for Future Directorships
A director with inactive DIN:
Cannot join new companies
Cannot rejoin resigned positions
Faces MCA portal restrictions
Professional growth gets stalled immediately.
Common Reasons for DIN Deactivation
DIN is usually deactivated due to:
Non-filing of DIR-3 KYC
Incorrect or mismatched KYC details
Duplicate DIN issues
Disqualification due to ROC non-compliance
Most deactivations are avoidable.
Penalty for DIN Deactivation
1. Late Fee for DIR-3 KYC
If DIN is deactivated due to non-filing of DIR-3 KYC:
₹5,000 late fee per DIN is payable
Fee is mandatory for reactivation
There is no waiver in most cases.
2. Business and Compliance Loss
Apart from monetary penalty:
Company filings get delayed
Penalties on ROC forms increase
Directors face reputational damage
The indirect cost is much higher than the late fee.
How to Reactivate a Deactivated DIN
Complete DIR-3 KYC filing
Pay applicable late fee
Ensure correct mobile and email verification
Check DIN status on MCA portal
Reactivation is possible, but delay increases complications.
How Directors Can Keep DIN Active
File DIR-3 KYC every year before due date
Keep contact details updated
Track MCA compliance calendar
Do not ignore MCA alerts
DIN compliance is personal responsibility, not company duty.
Consequences of Ignoring DIN Deactivation
Director cannot act or sign
Company ROC filings blocked
Increased penalties and notices
Risk of long-term disqualification
One missed KYC can snowball into major compliance trouble.
Conclusion
An active DIN is the foundation of a director’s legal authority.
Maintaining DIN compliance:
Protects directorship
Keeps companies compliant
Avoids penalties and embarrassment
Ignoring DIN status is a costly mistake.
Call to Action
If your DIN is inactive or DIR-3 KYC is pending, take immediate corrective action to restore your directorship rights and avoid further penalties.
Written by:
Abhishek Gupta
Chartered Accountant
Office No. 19, Sagar Building, 4th Floor, Plot-327,
Narshi Natha Street, Masjid Bunder (West),
Mumbai – 400009
📞9324776120
🌐 www.consultguruji.com