- How to apply for DIN? And Importance of DIN (Director Identification Number)
- Introduction
- Are you in dilemma whether you can apply for a DIN before forming your company? Then this article will answer your question on, “How to apply for DIN (Director Identification Number)?”, DIN or Director’s Identification Number, is required for all directors. It functions similarly to a director’s identity proof. DIN is assigned through a simple procedure that involves filling out forms and submitting them along with the necessary documents and fees to the MCA Portal.
- Before we get into the process of applying for a DIN before company incorporation, let’s first define “What is a Director Identification Number (DIN) is?”
- About Director Identification Number (DIN)
- With the addition of Sections 266A to 266G of the Companies (Amendment) Act, 2006, the concept of a Director Identification Number (DIN) was introduced. As a result, all current and prospective Directors must obtain DIN within the time-frame specified.
- ·
A director should
notify DIN of all companies in which he is a director.
- ·
The company must
notify ROC. Failure to submit DIN may result in a fine ranging from INR 25,000
to INR 1,000,000/-.
- ·
Nobody may take
more than one DIN.
- ·
Any return,
information, or particulars containing a reference to a director must include
the DIN (Director Identification Number).
- Ways to Obtain Director Identification Number
- DIN (Director Identification Number) can be obtained in two ways:
- 1. If an individual forms a new company, he can apply for a DIN along with an Incorporation Form i.e. SPICe +.
- Condition: Only three DIN (Director Identification Numbers) can be applied for with the incorporation form.
- 2.
If the
individual is offered a position in an existing company.
- Condition: Such company must pass a board resolution for such individual’s DIN application, which must be attached in e-form DIR-3.
- Importance of DIN (Director Identification Number)
- ·
A DIN number is
required to identify a person as a director of a company in India legally.
- ·
The entire
database of the director can be found using DIN
- ·
Any form of
communications with the MCA/ROC from the company such as annual returns, ROC
filings, applications or KYC information related to the company is submitted
with the signature of the Director(s) along with their DIN number.
- ·
Non-compliance
with this can result in penalties and fines from the ROC and the Director can
also lose their DIN number.
- ·
Director
Identification Number (DIN) not only helps fixing the identity of the Director
but also relates his participation in other companies, past and present.
- Documents required for DIN application before company incorporation
- ·
Self attested
copy of Aadhar card
- ·
Self-attested
copy of PAN
- ·
One Passport Size
photos
- ·
Self attested
copy of Passport, in case of foreign nationals
- ·
Self-attested
copy of address proof
- How to apply for a DIN (Director Identification Number)?
- ·
SPICe + Form:
Applications for allotment of DINs to proposed first directors in new companies
must be submitted in SPICe Plus Form only which is an integrated Web Form for
Company Incorporation.
- ·
DIR-3 Form:
Anyone wishing to become a director of an existing company must submit an
application for DIN allotment using eForm DIR-3.
- ·
DIR-6 Form: Any
changes to the directors’ personal information must be filed on form DIR-6.
- The above forms must be submitted electronically in order to apply for a DIN. It must be digitally signed before being uploaded to the MCA portal.
- Conclusion
- The answer to the question of whether an individual can apply for a DIN before forming a company is No. Prior to the SPICe+ form, one could apply for a DIN through the SPICe form. However, with the introduction of SPICe+ in 2021, there will be no need to apply for PAN, DIN, TAN, and so on separately, as all of these can only be applied for at the time of company incorporation through SPICe+.
