What is DIN in Company Registration?

What is Director Identification Number?

DIN, or Director Identification Number in company law, is a unique 8-digit number that every director, whether new, would-be, or existing, must obtain. The directors must file a DIN application with the MCA within the specified period.

A DIN number in company law is valid for a lifetime, even if he/she is a director in multiple companies. In other words, the DIN number is specific to an individual, not the company for which it has been obtained. If the individual leaves one company and joins elsewhere as a director, he/she can use the same DIN number.

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What are the Uses of DIN?

Following are the uses of Director Identification Numbers (DIN):

• Unique Identification: Each director is assigned a unique DIN, which helps in accurately identifying and verifying the identity of directors.
• Preventing Fraud: It helps prevent the use of false or fraudulent director identities, thereby reducing the risk of illegal activities such as “phoenixing,” where a company is deliberately liquidated to avoid paying debts.
• Regulatory Compliance: Directors are required by law to have a DIN, ensuring that all directors are properly registered and compliant with regulatory requirements.
• Traceability: It makes it easier for government regulators to trace directors’ relationships with companies over time, enhancing transparency and accountability.
• Official Identity: The DIN serves as the official identity of a director throughout various corporate processes, ensuring accurate documentation from the outset of business formation.

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What are the Relevant Forms for DIN Application?

Below are the forms relevant to the DIN Application -

• SPICe Form - The application for allotting DINs to the proposed first directors for new companies should be made in SPICe form only.
• DIR 3 Form - Any person who wants to become a director in an existing company has to apply for a DIN number using the e-form DIR 3.
• DIR 6 Form - If you want to make any changes to the points of interest or the particulars of the directors, they shall be made in Form DIR 6.

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Documents to be Attached with DIN Application Form

Here are the documents that you need to attach to each DIN application form -

• For SPICe Form - With the SPICe form, you have to attach your identity proof and address proof while filing the application.
• For DIR 3 Form - Here are the documents required with DIR 3 form -
  • Attachments: Photo, ID proof, residence proof, passport, and ID proof (in the case of foreign nationals).
  • Documents to be attested by CA, CMA, or CS: Photo, ID proof, and address proof duly attested by a CA. Documents attested by the consulate of the Indian embassy and Foreign Public Notary.
  • Once the DIR 3 form is uploaded along with the supporting documents, the applicant has to pay the fee.
  • DIN Generation: After the payment of the application fee, an application number is generated. The central government processes the application and approves or rejects it.
  • Intimation of DIN: The director has to intimate the DIN to all companies where he is a director within one month of receiving it from the Central Government.
• For DIR 6 Form - DIR 6 is submitted to change any details mentioned in the SPICe and DIR 3 forms. You also have to submit the attested supporting documents along with the Form.

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How to Apply for DIN in Company Law

Here is the procedure for registering/applying for a DIN number -

• Register yourself on the MCA21 portal to get a login ID. Login to the MCA21 entrance and click on the e-form upload link under the e-forms tab.
• Attach the supporting documents and a photo.
• After submitting the form, make the payment for documenting the expenses of e-form DIR 3. You can pay the fees electronically through net banking, credit/debit card, or NEFT.
• Upon submission and payment, the details of the Form will be acknowledged, and you will receive your number in 3-4 business days.
• If the DIN application is rejected, it will e-mail the reason for rejection to the applicant and will also put the reason on the website. The applicant will get 15 days to rectify the reason. If he rectifies such reasons and is able to satisfy the central government, he will be allotted DIN. Otherwise, the central government will label the application INVALID.
• If the details are duplicated, a provisional DIN is approved and provided.

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Common Reasons for Rejection of a DIN Application

Your application for a DIN number can be rejected due to the following reasons -

• If identity proof is not submitted
• If the father’s name of the applicant was not submitted
• The proof of date of birth has not been submitted
• If the address proof has not been submitted
• A copy of passport has not been provided
• Invalid application/supporting documents
• Outdated or invalid supporting documents
• Identity proof not delivered by the government agency
• If the application is hand written
• If the application does not have an attached photograph
• If the application submitted is same as the DIN application and one application of the same applicant is already in the course of approval.
• Signature is present at the wrong place
• If the applicant name provided in the application form is not similar to that in the evidence.
• There is a difference in the date of birth mentioned in the applciation and the evidence.
• There is a difference between the address proof mentioned in the application and the evidence.
• If the applicant’s gender is unclear,
• If the documents enclosed are not self-attested.

From the above article it is clear that any person who plans to become a director in a company whether existing or new. However, the number of forms to be submitted is very extensive and even the slightest error can derail the entire process of application. It is advised to take guidance from an experienced professional who is aware of the intricacies of Director identification number under company law or a Chartered Accountant. Book an eCA Now!

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