Why DIR-3 KYC is critical for every director
Introduction
Many directors believe DIR-3 KYC is a one-time formality completed at the time of DIN allotment.
That belief is wrong.
DIR-3 KYC is a mandatory annual compliance. Missing it even once can deactivate a director’s DIN and block all company filings.
This blog explains why DIR-3 KYC is critical and how it directly impacts directors.
What Is DIR-3 KYC
DIR-3 KYC is a form filed with the Registrar of Companies to verify a director’s identity and contact details.
It confirms:
PAN and Aadhaar
Mobile number and email ID (OTP-based verification)
Address and nationality
Status of DIN
This ensures only genuine individuals act as directors.
Why DIR-3 KYC Is Mandatory Every Year
The government requires annual verification to:
Prevent misuse of DIN
Eliminate fake or benami directors
Keep director data updated
Even if:
The director is not active
The company has no business
The director is in only one company
DIR-3 KYC filing is still compulsory.
What this really means is:
DIN remains valid only if KYC is updated every year.
Importance of DIR-3 KYC for Directors
1. Keeps DIN Active
Non-filing of DIR-3 KYC leads to DIN deactivation.
Once deactivated:
Director cannot sign any ROC form
Company filings get blocked
Director role becomes ineffective
2. Prevents Heavy Late Fees
DIR-3 KYC late filing attracts:
₹5,000 late fee per director
This fee is fixed and unavoidable once the due date is missed.
3. Essential for Company ROC Filings
If even one director’s DIN is deactivated:
AOC-4 cannot be filed
MGT-7 cannot be filed
Other ROC forms get rejected
One director’s default can block the entire company.
4. Protects Director’s Future Appointments
DIN deactivation affects:
Appointment in new companies
Existing directorships
MCA compliance history
Future business plans suffer immediately.
Common Reasons Directors Miss DIR-3 KYC
Change in mobile number or email
Assumption that KYC is one-time
Not receiving OTP
Ignoring MCA reminders
None of these reasons are accepted as legal excuses.
How Directors Can Stay Compliant
Update mobile number and email on time
Track DIR-3 KYC due date every year
Verify DIN status on MCA portal
Complete KYC even if company is inactive
DIR-3 KYC is personal responsibility, not company compliance.
Consequences of Ignoring DIR-3 KYC
DIN deactivated
ROC filings blocked
₹5,000 late fee
Loss of directorship eligibility
Legal and professional embarrassment
All because of a missed annual form.
Conclusion
DIR-3 KYC is not optional.
It is the lifeline of a director’s DIN.
Timely DIR-3 KYC:
Keeps DIN active
Avoids penalties
Protects director’s professional credibility
Ignoring it creates instant compliance trouble.
Call to Action
If your DIR-3 KYC is pending or your DIN is deactivated, act immediately to restore compliance before it affects company filings.
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