DIR-3 KYC in India – Process & Penalties for Directors

Every director in India who holds a Director Identification Number (DIN) is required to complete an annual KYC (Know Your Customer) filing with the Ministry of Corporate Affairs (MCA). This process is known as DIR-3 KYC. It ensures director details mobile number, email ID, identity proof are accurate and up to date in government records.

DIR-3 KYC is mandatory for all directors, whether their company is active, inactive, or even if they have resigned. Missing this filing can lead to DIN deactivation and a penalty of ₹5,000 per director. A deactivated DIN prevents the director from signing or filing any MCA forms until KYC is completed and the penalty (if applicable) paid.

The process is fully online and largely OTP/DSC driven: directors verify OTPs sent to registered mobile and email and authenticate using their Digital Signature Certificate (DSC).

In this guide Tax Rupees explain: what DIR-3 KYC is, who must file, documents required, step-by-step filing, due dates, penalties, and how TaxRupees can help you stay compliant.

What is DIR-3 KYC?

DIR-3 KYC is an annual MCA compliance for every individual holding a DIN. Directors must file personal information (full name, father’s name, DOB, PAN, Aadhaar, mobile, email, address) through the MCA portal. The portal verifies mobile and email via OTPs and the form is authenticated using the director’s DSC.

DIR-3 KYC is mandatory even if:

The director is not currently associated with any company.
The director has resigned from all directorships.
The company is dormant or inactive.

Applicability: First-time directors must file the detailed DIR-3 KYC form. Existing directors with no changes can use the simplified DIR-3 KYC Web filing in subsequent years.

In short: DIR-3 KYC is a yearly update of director details with MCA to maintain DIN in “Active” status and prevent misuse.

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Types of DIR-3 KYC

1. DIR-3 KYC Form (Detailed Filing)

For first-time filers or when personal details change (mobile, email, address).
Requires uploading PAN, Aadhaar, passport (foreign directors), address proof and signing with DSC.
Must be certified by a practicing CA/CS/CMA.

2. DIR-3 KYC Web (Simplified Filing)

Available from the second year onward if there are no changes in details.
Director verifies existing MCA data via OTPs on registered mobile & email, no document upload usually required.
Faster and simpler than the e-form route.

In short: Use the full form for first-time or updates; use Web filing if nothing has changed.

Eligibility & Applicability

The DIR-3 KYC requirement applies to all individuals who hold a DIN, regardless of company status.

Who Needs to File DIR-3 KYC?

All Directors with an Active DIN: DIN holders allotted on or before 31st March of the financial year must file by 30th September of the next year.
Disqualified Directors: Must file even if disqualified under Section 164.
Directors Who Resigned: Must still file annual KYC until DIN is surrendered.
Foreign Directors: Required to file and provide passport details (notarized/apostilled where applicable).

Exceptions: Individuals who never had a DIN or whose DIN has been formally surrendered are not required to file DIR-3 KYC.

In short: If you hold a DIN as active, inactive, disqualified, or after resignation then you must file DIR-3 KYC annually.

Step-by-Step Process for Filing DIR-3 KYC

Filing is fully online via the MCA portal. Choose DIR-3 KYC Form for first-time/updating details, or DIR-3 KYC Web for simplified reconfirmation.

Step 1: Log in to MCA Portal

Visit mca.gov.in (official MCA portal).

Step 2: Select the Correct KYC Mode

First-time / detail changes → DIR-3 KYC Form.
No changes → DIR-3 KYC Web (OTP verification only).

Step 3: Fill in Personal Details

Full name (as per PAN), father’s name, DOB, PAN, Aadhaar, nationality, permanent & present address.

Step 4: Verify Contact Details

Provide mobile number & email. Verify via OTPs sent to both.

Step 5: Attach Supporting Documents (If Using DIR-3 KYC Form)

PAN, Aadhaar, passport (for foreign directors), address proof (utility bill, DL, voter ID).
Director’s DSC is required to sign the e-form.

Step 6: Certification by Professional (For E-Form)

E-form must be certified by a practicing CA/CS/CMA where applicable.

Step 7: Submit / Web Verify

Upload e-form with DSC or complete Web OTP verification and submit online.

Step 8: Acknowledgment

On successful submission an SRN (Service Request Number) is generated and the DIN status becomes Active.

Timeline: Filing must be completed by 30th September each year for DINs allotted on or before 31st March of the preceding financial year.

Need help with your DSC? See our Digital Signature services for renewal and setup.

Documents Required for DIR-3 KYC

For Indian Directors

PAN Card – Mandatory (details must match exactly).
Aadhaar Card – For identity verification (linking with PAN recommended).
Address Proof – One of: passport, voter ID, driving license, utility bill (not older than 2 months).
Email & Mobile – For OTP verification.
Digital Signature Certificate (DSC) – Required for e-form signing.

For Foreign Directors

Passport – Mandatory (notarized/apostilled if required).
Address Proof – Resident permit, driving license, or utility bill (not older than 2 months).
Email & mobile (foreign numbers allowed) and DSC for authentication.

In short: PAN, Aadhaar, updated mobile & email, and DSC are core for Indian directors. Foreign directors need notarized passport and overseas address proof.

Due Dates & Penalties for DIR-3 KYC

The MCA requires every DIN holder to file DIR-3 KYC annually. Missing the deadline leads to DIN deactivation and monetary penalty.

Due Date for Filing

Who: Every individual allotted a DIN on or before 31st March of the financial year.
Deadline: 30th September of the following financial year.
First-time: Use the detailed DIR-3 KYC Form. Subsequent years: DIR-3 KYC Web if no changes.

Penalties for Non-Compliance

DIN Deactivation: DIN is marked “Deactivated due to non-filing of DIR-3 KYC”.
Monetary Penalty: To reactivate, a penalty of ₹5,000 per director must be paid before filing KYC.

Consequences: Inability to act as director, disruption in company filings (forms require active DIN), and increased regulatory scrutiny for repeated defaults.

In short: File by 30th September to avoid ₹5,000 penalty and DIN deactivation.

Consequences of Non-Compliance

DIN Deactivation: DIN marked deactivated — cannot sign MCA forms.
Penalty of ₹5,000: Must be paid to reactivate the DIN; non-refundable.
Inability to File Company Forms: Company ROC/GST/IT filings may be delayed due to inactive DINs.
Impact on Directorship: Director cannot legally act as director until the DIN is active again.

In short: DIN deactivation and penalties disrupt both personal directorship and company compliance for timely filing prevents these risks.

How TaxRupees Can Help

DIR-3 KYC may seem straightforward but common issues (OTP failures, PAN–Aadhaar mismatches, expired DSCs, wrong KYC mode selection) can cause rejections and DIN deactivation. TaxRupees provides end-to-end support to avoid these pitfalls:

Eligibility Check: Help determine whether to file DIR-3 KYC Form or KYC Web.
Document Assistance: Guidance on PAN, Aadhaar, passport and address proofs in the correct format.
OTP & DSC Support: Help with verification and DSC renewal/use.
Error-Free Filing: We file DIR-3 KYC on MCA accurately and on time.
Reminders & Penalty Avoidance: Timely reminders before 30th September so you never miss the deadline.
Packages: Affordable options for individuals and companies with multiple directors.

CTA: File your DIR-3 KYC with TaxRupees today and avoid penalties or DIN deactivation.

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Looking for more reading on company compliance? See our article on Company Annual Compliance in India. (Related resource from site map.)

FAQs on DIR-3 KYC in India

What is DIR-3 KYC?
DIR-3 KYC is an annual filing where directors verify personal details (name, PAN, Aadhaar, email, mobile) to keep their DIN active.
Who needs to file DIR-3 KYC?
Every individual allotted a DIN on or before 31st March of the financial year must file by 30th September of the following year — including disqualified and resigned directors.
What is the difference between DIR-3 KYC Form and DIR-3 KYC Web?
Form: For first-time filers or detail updates; requires documents and certification.
Web: For subsequent years with no changes; only OTP verification required.
What happens if I don’t file DIR-3 KYC?
Your DIN will be marked as “Deactivated due to non-filing of DIR-3 KYC” and you cannot act as a director or sign MCA forms until reactivation.
What is the penalty for late filing?
₹5,000 per director - payable before reactivating the DIN.
Can a director with a deactivated DIN still serve on the board?
No. They cannot legally perform duties as a director until the DIN is reactivated.
Do foreign directors need to file?
Yes. Foreign directors must file DIR-3 KYC and provide notarized/apostilled passport and address proof.
Is filing required if the company is dormant?
Yes. DIR-3 KYC is linked to the DIN, not the company. Directors must file even if their companies are dormant.
What if my email ID or mobile number has changed?
You must file the full DIR-3 KYC Form (not Web) to update and verify new contact details via OTPs.
How can I check if my KYC is filed?
Check DIN status on the MCA portal; “Active” indicates KYC is up to date. For specifics visit mca.gov.in.

In short: DIR-3 KYC is mandatory for all DIN holders every year. Timely filing by 30th September keeps your DIN active and avoids the ₹5,000 penalty.

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