Director Identification Number (DIN) - Overview & Procedure For Application (Sections 153 to 159)

What is Director Identification Number (DIN)?

Director Identification Number (DIN) is an identification number given by the central government to an individual who wishes to be appointed as a director in any company. DIN once allotted shall be valid for a lifetime.

Who Should Apply for a Director Identification Number?

Individuals who wish to be appointed as directors of a company should make an application to the Central government for the allotment of DIN. The Central government should within a month after receiving receipt of the application allot a DIN to the applicant. Individuals who already have been allotted a DIN by the central government shouldn’t apply for another DIN.

Existing directors, within a month after receiving the receipt of the DIN from the Central Government, should intimate the list of all the companies where he/she is appointed as a director.

Punishment related to Director Identification Number

Companies, should within 15 days after receiving the receipt of intimation from the director, should furnish the DIN to the registrar. If a company fails to furnish DIN within the specified period, the company is liable to pay a fine between rs. 25,00 to rs. 1,00,00 and every defaulting officer of the company is liable to pay a fine between rs. 25,00 to rs. 1,00,00.

Every individual or company, while providing any information, return or particulars should mention the DIN in such information, return, or particulars in case such information, return or particulars is about or has any relation to any director. When a copy of such a document is to be presented somewhere, DIN should be mentioned. In simpler terms, it is necessary to mention DIN in all documents or resolutions.

Individuals or directors of a company, who contravene any of the provisions are punished with imprisonment up to 6 months or with a fine up to rs.50,000, and where the contravention is continuous, the fine should be increased at the rate of rs.500 per day.

Procedure for Application of Director Identification Number

The procedure to be followed for application and allotment of DIN by Rule No. 9 to 12 of the Companies (Appointment and Qualification of Directors) Rules, 2014 is mentioned below:

1. The applicant should’ve got a Digital signature Certificate (DSC) before applying for DIN.

2. The applicant should’ve necessary documents for proof of identity and residence for obtaining DIN, Copy of latest passport size photograph, Place of Birth, Date of Birth, Educational, Qualification & present occupation of the Applicant; Phone No. & E-mail id of Applicant and Copy of verification by the applicant as per Form No. DIR-4

The applicant has to make an e-application with the Central Govt. in E-Form No. DIR-3 for Allotment of DIN along with fees. E-Form No. DIR-3 should be attached with:

• Proof of Identity

• Proof of residence

• Photograph in JPEG Format

• Declaration in Form No. DIR-3A, if necessary.

3. In case the person’s name does not have the last name, then his or her

father’s or grandfather’s surname should be mentioned as the last name along with the

declaration in Form No. DIR-3A

4. In case proofs are in other languages than Hindi / English, then they should be

translated into Hindi / English by a professional translator carrying his/her details (address, name, signature) and seal. In the case of foreign nationals, translation can be done by the notary of the home country.

5. E-Form No. DIR-3 should be digitally signed by the applicant using his/her

own Digital Signature Certificate and it should be digitally verified by CA; CS; or ICW in

practice; or a CS in full-time employment of the company or by the

MD or director of the existing company in which the applicant is

proposed to be appointed a director.

6. On submitting the E-Form No. DIR-3 on the portal with the online payment of fees and application no. shall be generated by the system automatically.

7. After the generation of Application No., the Central Government will review the

Application, and on being satisfied with the application; communicate it to the applicant along with the allotted DIN electronically or by letter of the post or in any other mode, maximum within a month from the receipt of such application.

8. If Central Government, while examining, finds such application as incomplete or defective in any respect, it will intimate such incompleteness or defect, by email to the applicant and placing it on the portal, directing the applicant to resubmit by rectifying such incompleteness or defects within 15 days of email or such placing on the website.

9. The Central Government will either reject the application form and direct to file a fresh application with complete and correct information, if the defect has been rectified only partially or the information given is still defective; the central government will treat and label the application as invalid in the e-record if the defects are not removed in the given time, and inform the applicant about it either electronically or by letter by post or in any of mode.

10. In case the application is rejected or labeled invalid, the fee paid with the application would neither be refunded nor adjusted with other applications.

Section 153 to 159 of the Companies Act, 2013

153. Application for allotment of Director Identification Number.— Every individual intending to be appointed as director of a company shall make an application for allotment of Director Identification Number to the Central Government in such form and manner and along with such fees as may be prescribed.

154. Allotment of Director Identification Number.— The Central Government shall, within one month from the receipt of the application under section 153, allot a Director Identification Number to an applicant in such manner as may be prescribed.

155. Prohibition to obtain more than one Director Identification Number.— No individual, who has already been allotted a Director Identification Number under section 154, shall apply for, obtain or possess another Director Identification Number.

156. Director to intimate Director Identification Number.— Every existing director shall, within one month of the receipt of the Director Identification Number from the Central Government, intimate his Director Identification Number to the company or all companies wherein he is a director.

157. Company to inform Director Identification Number to Registrar.—

(1) Every company shall, within fifteen days of the receipt of intimation under section 156, furnish the Director Identification Number of all its directors to the Registrar or any other officer or authority as may be specified by the Central Government with such fees as may be prescribed or with such additional fees as may be prescribed within the time specified under section 403 and every such intimation shall be furnished in such form and manner as may be prescribed.

(2) If a company fails to furnish Director Identification Number under sub-section (1), before the expiry of the period specified under section 403 with an additional fee, the company shall be punishable with a fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees and every officer of the company who is in default shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees.

158. Obligation to indicate Director Identification Number.— Every person or company, while furnishing any return, information, or particulars as are required to be furnished under this Act, shall mention the Director Identification Number in such return, information, or particulars in case such return, information, or particulars relate to the director or contain any reference of any director.

159. Punishment for contravention.— If any individual or director of a company, contravenes any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be punishable with imprisonment for a term which may extend to six months or with a fine which may extend to fifty thousand rupees and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day after the first during which the contravention continues.