File KYC Form to Be Compliant and to Avoid Penalties
As per the latest government rules, all directors of companies must file KYC form annually. Also, the addition of 12A to Companies Rules, 2014 (Appointment and Qualification of Directors) by the MCA (Ministry of Corporate Affairs) has made it mandatory for directors to file the new e-form DIR-3 KYC. If they fail to file KYC form, their DIN (Director Identification Number) will be deactivated.
Who Needs to File KYC Form?
All directors with a DIN having an ‘Approved ‘status, including even those who are disqualified, need to do it by the due date. The form has to be filed by 30th April of the next financial year.
Requirements to File
The following are needed to file KYC form every year:
- A unique email ID and personal mobile number: Only the director’s personal mobile number and email ID is to be stated in the KYC form. The word unique implies that the email ID and numbers mentioned cannot be used in other KYC forms or by any other directors. It is to ensure that a director has only one KYC form against his name.
- Attestation by the director’s DSC: While filing the e-form, the director’s digital signature certificate is needed. All DSCs need to be based on the directors’ PAN. If the director is a foreign national, his DSC details should match what he has given in the form. Since the PAN data is checked with the IT department, it is necessary to enter the same information. A foreign national’s name would be tallied with that entered in DIR-3 KYC. The DSC is, therefore, a compulsory requirement to do it.
- A practising professional should certify the form: The form you are filing needs to be certified with the digital signature of a practising CA, CS, or CMA. If the professional certifies a form, he is responsible for any false information given.
Details and Documents Needed to File KYC Form
Filing the KYC form has to be accompanied by these documents related to the director:
- Proof of identity (If he/she is a foreign national – PAN card or passport).
- Address proof, such as driving license, Aadhar card, voter’s identity card, or any other.
These details are also needed to be submitted to MCA together with the above documents:
- Aadhar number (if it has been allotted).
- Details, such as name have to be verified with PAN.
- Nationality, citizenship, and residential status.
- Voter’s Identity Card number.
- If he/she is a foreign national, passport details are required.
- Driving license number.
While filing, your unique email ID and mobile number will be checked with an OTP (One-Time Password).
What Happens if You Do Not File KYC Form?
These are the consequences of not filing KYC form:
- The central government or the concerned authority will deactivate the director’s DIN if he/she fails to file KYC form by the prescribed date.
- The deactivated DIN can be reactivated only by paying additional or late fees as laid down by the Companies Rules (Registration Offices and Fees Rules), 2014.
It has also become mandatory for all companies’ directors to file it and fulfil other compliances required within the stipulated deadline. It is a compulsory yearly requirement, and failure to do so can result in unnecessary penalties and other consequences.
3E Accounting has in its team, skilled and experienced personnel who help entrepreneurs with all kinds of support needed to register your business and run their businesses. We know how to fill the KYC form every year. Outsourcing this work helps in filing the form before the deadline. Also, we provide all necessary assistance for KYC requirements to make you compliant and prevent consequences like the payment of penalties or deactivation of DINs.