The Director Identification Number (DIN) is a unique identification number assigned to individuals who wish to become directors of a company or designated partners in a Limited Liability Partnership (LLP) in India. The Registrar of Companies (ROC) is responsible for issuing DINs under the Companies Act 2013. However, certain circumstances allow for surrendering a DIN. In this article, we will discuss the legal provisions and the process of surrendering a DIN.
Director Identification Number (DIN) can be surrendered due to different reasons, and the DIN can also be surrendered voluntarily for the purposes of cancellation or deactivation on certain conditions.
Director Identification Number
DIN is the Director Identification Number allotted to an individual by the Central Government who intends to appoints as a Director in the Company or a Partner in an LLP registered in India. The application for allotment of DIN shall be made in Form DIR-3/ Spice+ along with required fees and documents.
The same DIN allotted to the Director shall not be allotted to any other person and such DIN is valid for lifetime. It is a unique 8-digit number written underneath the signature of the concerned director in returns, applications, forms, etc. Any change in details mentioned in Form DIR-3 or Spice+ shall be intimated through Form DIR-6 to the concerned authority along with supportive documents.
Any individual shall not apply for another DIN when already possess the same otherwise it shall be considered as non-compliance of Section 155 and such director or the Company shall be liable to an imprisonment or fine.
Legal Provisions
- Death of the DIN holder
- The unsound mind of the DIN holder
- Insolvency of the DIN holder
- Disqualification of the DIN holder
- Duplicate DIN
- Unused DIN
Reasons for Surrender of DIN
- Multiple DIN– As per Section 153 of the Companies Act, 2013 if any Director holds more than one DIN, then he should make an application to Regional Director in Form DIR-5 along with notarized affidavit stating that such DIN has never been used in any kind of a document required to be submitted to ROC. Also, an application for compounding shall be filed in Form GNL-1.
- DIN obtained by fraud or wrongful manner- If a Director has obtained a DIN by furnishing false information or in a wrongful manner, then DIN is required to be surrendered by such concerned person/director or regulatory authorities shall deactivate such DIN after issuing show cause notice to the director.
- When Director declared as a person of unsound mind- As per Section 153 of the Companies Act, 2013 if the competent court has declared any person as of unsound mind, then DIN is required to be surrendered by filing Form DIR-5 along with the order of court as an attachment.
- When Director adjudicated as an insolvent- If the DIN holder adjudged as an insolvent, then he shall surrender his DIN by filing Form DIR-5 along with the order of court.
- Death of the Director- In case of death of director, his relative shall file Form DIR-5 and shall attach death certificate to it.
Ways to surrender DIN
- On order of Central Government– Central Government shall order Director to surrender his DIN in certain cases such as:
- If Director has multiple DIN
- If Director has obtained the DIN by fraud or misrepresentation
- On Death of Director
- If Director has been declared insolvent
- If Director has been adjudged as an insolvent
- Voluntary by DIN holder– A DIN holder shall surrender his DIN on his own if the director has not been appointed in any company or body corporate while in possession of DIN and such DIN has not been used in any document which is used in communication to regulators. In such cases director can surrender his DIN voluntarily.
Process of Surrendering a Director Identification Number (DIN)
n order to surrender your Director Identification Number (DIN), you will need to file an online application in Form RC-1 with the Regional Director of the Ministry of Corporate Affairs. Along with this application, you must submit supporting documents. Additionally, you will need to fill out and sign a physical application called DIR-5, which is used specifically for the surrender of a DIN pursuant to Section 153 and Rule 11(f) of the Companies (Appointment and Qualification of Directors) Rules, 2014. Once you have completed and signed the DIR-5 application, it must be attached to the RD-1.
Important Points
- RD-1 is an online application for Regional Director
- The RD-1 form must be signed by the DSC of the director
- DIR-5 is a physical application; the scan to be attached
- The government fee is Rs. 1000 for filing RD-1
- An affidavit of non-use of DIN is also required
- DIN must have active DIN KYC filings
FAQs
What is DIN surrender?
DIN surrender is the process by which a director can voluntarily deactivate their Director Identification Number.
Why would someone surrender their DIN?
Directors may choose to surrender their DIN if they no longer serve as a director in any company or if they wish to discontinue their directorship for any reason.
How can I surrender my DIN?
You can surrender your DIN by filing Form DIR-5 on the MCA (Ministry of Corporate Affairs) portal along with the necessary documents.
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