Company is an artificial person having legal entity and holding Perpetual Succession. To run the Business of the company it is required natural persons so that these persons could manage the affairs of the company. Directors are the persons who are being appointed by shareholders in the General Meeting. Directors are regarded as an Officer of the company.
Every person who intends to become a director in a company must hold Director Identification Number (DIN) as per the provision of Companies Act, 2013.
Subsection 3 of Section 152 of the Companies Act,2013 states that No person shall be appointed director of a company unless he has allotted DIN (Director Identification Number) as per section 154 or any other number as may be prescribed under section 153 and every person’s need to furnish their allotted Director Identification Number while appointment as a Director of the company.
DIN (Director Identification Number)
It is an 8 Digit Unique Identification Number allotted by Central Government to the Individuals who intended to become Directors in a Company or already are the Directors of the Company.
DIN once allotted is valid for the lifetime and it can only be Cancelled, Deactivated or Surrendered. It is Mandatory to have a DIN while appointed as a Director of the company and as per section 155 of the companies Act,2013, It is prohibited that no individual can obtain more than one DIN.
Application for allotment of (DIN) Director Identification Number
As per Section 153 of the Companies Act,2013 states that Every Individual intending to be appointed as director of a company shall make an application to Central Government in such form and manner as being prescribed. The Process has been made very simple while directly applying at the portal of Ministry of Corporate Affairs (MCAs) website and filing of Form DIR 3 with attachment copy described below:-
- Identity Proof
- Residential proof
- Specimen Signature
After filing the Form with attached documents it is required to sign through Digital Signature Certificate (DSC), which is to be verified by CA, CS or CMA, Director, Manager CEO or CFO of the Company. It is to be filled with the Prescribed fees.
Allotment of DIN (Director Identification Number)
After the Submission of the Form DIR 3 in the prescribed format with prescribed fees, the Central Government with his designated authorities read with Rule 10 of ( Qualification and Appointment of Directors ) of companies Act,2013 have an option to either approve or reject such application. As per section 154 of the companies act,2013 states that within one month from the date of receipt of such prescribed fees the central government allots DIN to the individual who made an application in FORM DIR 3. The Central Government Allots DIN to the applicant within a month.
If Application for Allotment of DIN gets rejected
If the Applicant Form DIR 3 gets rejected then in such case the Central Government gives the applicant 15 days time period to rectify. In this 15 days time period the applicant is required to repeat the process as discussed above as filing of Form DIR 3 in such manner prescribed but in rectification, there are no required fees to be submitted along with.
If the Applicant fails to make any rectification the application gets invalid and the fees get forfeited by the Central Government.
How to make changes in details of DIN (Director Identification Number)
Whenever it is required to make any changes in the details of the DIN then it is required to intimate such to the Central Government through filing Form DIR 6 in the MCA (Ministry of Corporate Affairs) portal. Such form DIR 6 needs to be verified through Digital signature Certificate (DSC) and get it Digitally verified by Practicing CA or CS or CMA while making changes in the DIN (Director Identification Number).