How to Apply for DIN (Director Identification Number) ?

In India, every individual who is appointed as a company director or an LLP designated partner, or who intends to take up such a position, must obtain a DIN (Director Identification Number). A DIN is a unique identification number issued by the Ministry of Corporate Affairs (MCA) through its official MCA Portal. To obtain a DIN, the applicant must file Form DIR-3 on the Portal in the manner prescribed by the Ministry. A valid DIN is required for a person to legally act as a director of a company registered under the Companies Act, 2013. Similarly, it is also required for a person to legally act as an LLP’s designated partner under the Limited Liability Partnership Act, 2008.

Applying for a DIN is an important step for anyone planning to become a company director or LLP designated partner. In this article, we will explain the DIN application process step-by-step, including the required documents, applicable fees and the online procedure you need to follow.

What is DIN?

DIN full form is Director Identification Number. It is an 8-digit unique number given to an individual who wants to become a director of a company or a designated partner in an LLP. This number helps the government keep track of individuals who are managing companies/LLPs in India. It eliminates illegal phoenixing and ensures transparency in corporate governance.

A DIN can only have one person associated with it and vice versa. If an individual is a director at multiple companies, the same single DIN is to be used by them. Being in possession of more than one DIN is not allowed u/s 155 of Companies Act, 2013.

Key Points to Know About DIN:

• It is required for Company Directors.
• It is also required for LLP Designated Partners
• DIR-3 is the prescribed application form for DIN application.
• The Ministry of Corporate Affairs (MCA) issues DIN.
• It is applied online via MCA portal.
• DIN remains valid for LLP Designated Partner/Company Director’s lifetime unless surrendered, cancelled or deactivated.

Also Read: What is the Role of Managing Director in a Company?

Cost of Applying for DIN

The basic cost of obtaining a DIN is relatively low. It is provided below:-

Note:- Securing the Digital Signature Certificate (DSC) is necessary. Without it, the DIN application cannot be digitally signed.

Who can Apply for DIN?

An individual can apply for DIN if:-

• They are at least 18 years of age.
• They are not disqualified from becoming a company’s director or LLP’s designated partner.
• The individual can be an Indian or a foreign national.
• They must have a valid identity proof and address proof.

Documents Required for DIN Application

Before applying for DIN, an individual must keep the following documents and details ready:

• PAN Card
• Aadhaar Card
• Passport / Voter ID / Driving License (if available)
• Recent Photograph
• Address Proof
• Email ID and Mobile Number
• Digital Signature Certificate (DSC)

Note:- The DIN applicant’s name and father’s name must match exactly with details in PAN card. Ensuring this is necessary because the system verifies these details with Income Tax database.

Step-by-Step Process to Apply for DIN Online

In the DIN application process, the following steps are involved:-

Step 1: Visit the official MCA portal @ https://www.mca.gov.in/content/mca/global/en/home.html.

Step 2: Once you’ve landed on the homepage, login into the portal.

Step 3: Then, go to the “MCA Services” section.
Step 4: In the ‘Company E-filing’ section, choose ‘DIN Related Forms’ and then click on ‘DIR-3 – Application for allotment of DIN’.

Step 5: Once the web-based DIR-3 form appears on your screen, you need to enter all the necessary details in it, including your personal information, contact details and address details. Make sure all these details match with details on your official ID proofs.

Step 6: Thereafter, attach the necessary documents.

Step 7: E-sign the DIR-3 form using Digital Signature Certificate. Also, get it verified by an existing Director, Company Secretary, Manager and Chief Executive Officer/Chief Financial Officer.  

Step 8: Proceed with payment of DIN application fee. You can make the payment through net banking, credit card or NEFT, as per your convenience. It is important to note that offline payment isn’t accepted.

Once all the aforementioned steps are completed, your DIN will be issued within a period of 1-3 working days.

Important Points to Remember About DIN Application

Here are a few important points pertaining to DIN application:-

• A person cannot have more than one DIN. Therefore, one should not file a new DIN application if they already have an existing DIN number.
• Providing incorrect information during the application process may result in heavy penalties.
• Always verify details before submitting the DIR-3 KYC form.
• Keep your DSC, email and mobile number active for verification purposes.

Conclusion

A Director Identification Number, abbreviated as DIN, is required for an individual to be appointed as a director of a company or a designated partner of an LLP in India. Applying for this number is a fairly simple process that needs to be completed online via MCA portal. First, obtain a Digital Signature Certificate. Then, fill out the DIR-3 form, attach the required documents, submit the form using the DSC and pay the DIN application fee of Rs. 500. Once the application is approved, the DIN is issued within a few days. 

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Frequently Asked Questions (FAQs)

Q1. What is a DIN number?

DIN stands for Director Identification Number. It is a unique 8-digit identification number issued to individuals who want to become directors of a company or designated partners in an LLP. It is issued by Ministry of Corporate Affairs online via MCA Portal. 

Q2. Who needs to apply for a DIN?

Anyone who wants to become a director of a company or a designated Partner in an LLP must apply for a DIN under the provisions of the Companies Act, 2013.

Q3.  How much does it cost to apply for DIN?

The official government fee to apply for DIN is Rs. 500. However, you may also need a DSC, which usually costs around Rs. 1,000 to Rs. 1,500.

Q4. Which form is used to apply for DIN?

To apply for a DIN, applicants must submit Form DIR-3 on MCA portal. This form is officially called “Application for Allotment of Director Identification Number.”

Q5. Is PAN mandatory for DIN application?

Yes, a PAN card is mandatory for Indian applicants. Using this document, the MCA portal verifies the applicant’s name, father’s name and date of birth with the Income Tax database. 

Q6. Can a person have more than one DIN?

No. As per company law, one person can have only one DIN. Holding more than one DIN is considered a violation of the law and may result in penalties.

Q7. How long does it take to get a DIN?

In most cases, once the form is submitted and the payment is completed successfully, the DIN is allotted immediately or within a short time through the MCA system.

Q8. Is DSC required for filing a DIN application?

Yes. A DSC is required to sign the DIR-3 form electronically before uploading it on the MCA portal.

Q9. Can I apply for DIN without professional help?

Yes. The entire process is available online on the MCA V3 portal. Individuals can apply for this unique number themselves if they have all the required documents as well as authorization from an existing director/designated partner. However, many people prefer professional assistance to avoid errors in the application.

Q10. Which DSC do I require for e-signing DIR-3 form?

You require a valid Class 3 DSC to e-sign DIR-3 form on the MCA V3 portal. 

Q11. What is illegal phoenixing?

A. It refers to a serious crime in the corporate world. In this, a failing or insolvent company is closed down and then its assets (like clients list, contracts, etc.) get transferred to a new business that is managed by the same directors. It is done to leave the old company’s unpaid debts behind (like unpaid taxes and salaries of employees).

Q12. How does DIN prevent illegal phoenixing?

A. DIN allows the MCA to track the number of companies an individual is a director of. The government can check the entire company history of a director with this unique number. So, if a director is found to be engaged in illegal phoenixing, the government can track them down and take appropriate legal action against them. Therefore, knowing this, many directors stay away from this illegal practice and DIN works as a preventive measure.

Q13. Can a minor apply for DIN?

A. No. A minor cannot be a director at a company. Therefore, they cannot apply for DIN.