Everything You Need to Know About Director Identification Number (DIN)

Introduction

Are you looking for information abour director identification number, its surrender and reactivation ?

Hi, my name is CA Bhuvnesh Kumar Goyal, I am a practicing Chartered Accountant with B K Goyal & Co LLP. B K Goyal & co LLP is a CA Firm in India engaged in the practice of company law since 2017 including company incorporations, gst registration, income tax, trademark registration, income tax litigations etc.

Incorporating a company in India requires a lot of documentation and compliance with government regulations. One such important requirement is obtaining a Director Identification Number (DIN) for all the directors of the company. In this blog, we will explore what DIN is, why it is important, and how to obtain one.

What is a Director Identification Number (DIN)?

A Director Identification Number (DIN) is a unique 8-digit alphanumeric code issued by the Ministry of Corporate Affairs (MCA) to every individual who is appointed as a director of a company in India. The DIN is a permanent identification number that stays with the individual for the rest of their lives, regardless of whether they continue to be a director of any company or not.

Why is DIN Important?

The Director Identification Number (DIN) is an important compliance requirement for companies in India. It helps the government keep track of the directors and their activities, ensuring transparency and accountability in the corporate sector. Obtaining a DIN is a pre-requisite for incorporating a company in India and is mandatory for every director.

How to Surrender a Director Identification Number (DIN)?

In some cases, directors may need to surrender their Director Identification Number (DIN) if they cease to be a director of a company. Here’s a step-by-step guide on how to surrender a DIN:

Cease to be a Director: The first step in surrendering a DIN is to cease to be a director of a company. This can be done by resigning from the position or by removal through a board resolution.
Obtain a No Objection Certificate (NOC): Once the individual has ceased to be a director, they need to obtain a No Objection Certificate (NOC) from the company. The NOC should state that the company has no objections to the individual surrendering their DIN.
File Form DIR-11: The next step is to file Form DIR-11 with the Ministry of Corporate Affairs (MCA). This form is used to notify the MCA of a change in the director’s status, including resignation or removal.
Surrender DIN: After filing Form DIR-11, the individual can surrender their DIN by submitting a request to the MCA. They need to provide the NOC from the company and a declaration that they no longer hold any directorship in any company in India.
Confirmation of Surrender: The MCA will process the request to surrender the DIN and provide confirmation once the surrender has been accepted.

It is important to note that surrendering a DIN is a straightforward process but can take some time, so it’s best to start the process as soon as possible. Failing to surrender a DIN can result in penalties and fines for the individual, so it is crucial to follow the proper procedure and complete the process in a timely manner.

Surrendering a Director Identification Number (DIN) is a process that must be followed when an individual ceases to be a director of a company in India. With the right information and a step-by-step guide, surrendering a DIN should be a smooth and hassle-free experience.

How to Obtain a Director Identification Number (DIN)?

Getting a Director Identification Number (DIN) is a straightforward process and can be completed in a few simple steps. Here’s a step-by-step guide to obtaining a DIN:

Determine Eligibility: To be eligible for a DIN, an individual must be appointed as a director of a company in India. They must have a valid PAN card and an active email address.
Prepare the Required Documents: The following documents are required to obtain a DIN:

PAN Card
Proof of Identity (Passport/Aadhar Card/Voter ID)
Proof of Residence (Passport/Aadhar Card/Voter ID/Electricity Bill/Rent Agreement)
Digital Signature Certificate (DSC)

Apply for DIN: The next step is to apply for the DIN through the MCA portal. The process involves filling in the required details, uploading the required documents, and paying the fees.
Approval of DIN: Once the application for DIN is submitted, the MCA will process it and approve the DIN if all the details are in order.

How to Activate a Deactivated Director Identification Number (DIN)?

In some cases, a Director Identification Number (DIN) may become deactivated due to various reasons such as non-filing of annual returns or failure to notify the Ministry of Corporate Affairs (MCA) of a change in the director’s status. Here’s a step-by-step guide on how to activate a deactivated DIN:

Determine the Reason for Deactivation: The first step in activating a deactivated DIN is to determine the reason for deactivation. This information can be obtained from the MCA website or by contacting the MCA directly.
File Required Forms: Depending on the reason for deactivation, the individual may need to file one or more forms with the MCA. For example, if the DIN is deactivated due to non-filing of annual returns, the individual may need to file the overdue returns and pay the applicable fees.
Update the MCA: The individual may also need to update the MCA with their current information, such as their address, email, and phone number. This can be done by filing the relevant forms with the MCA.
Request for Activation: Once all the required forms have been filed and the necessary updates have been made, the individual can request the activation of their deactivated DIN by submitting a written request to the MCA.
Confirmation of Activation: The MCA will process the request to activate the deactivated DIN and provide confirmation once the activation has been accepted.

It is important to note that activating a deactivated DIN can take some time, so it’s best to start the process as soon as possible. Failing to activate a deactivated DIN can result in further penalties and fines, so it is crucial to follow the proper procedure and complete the process in a timely manner.

Activating a deactivated Director Identification Number (DIN) is a process that must be followed to ensure compliance with government regulations. With the right information and a step-by-step guide, activating a deactivated DIN should be a smooth and hassle-free experience.

Reasons for Director Identification Number (DIN) Deactivation

A Director Identification Number (DIN) is an important compliance requirement for individuals who are appointed as directors of a company in India. However, in some cases, a DIN may become deactivated due to various reasons. Here are some of the most common reasons for DIN deactivation:

Non-filing of Annual Returns: One of the most common reasons for DIN deactivation is the non-filing of annual returns. Companies are required to file annual returns with the Ministry of Corporate Affairs (MCA) to keep their records up to date. If a company fails to file its annual returns, the DINs of its directors may become deactivated.
Failure to Notify MCA of Change in Director’s Status: If a director’s status changes, such as resignation or removal, the company is required to notify the MCA. If the MCA is not notified, the director’s DIN may become deactivated.
Incorrect Information: In some cases, a DIN may become deactivated due to incorrect information provided to the MCA. For example, if the individual’s name or address is incorrect, their DIN may become deactivated.
Non-payment of Fees: The MCA may also deactivate a DIN if the applicable fees are not paid.

It is important to note that a deactivated DIN can result in penalties and fines for the individual and the company. Therefore, it is crucial to keep track of the DIN and take action to reactivate it if it becomes deactivated.

There are several reasons for DIN deactivation, including non-filing of annual returns, failure to notify the MCA of a change in the director’s status, incorrect information, and non-payment of fees. To avoid DIN deactivation, it is important to stay compliant with government regulations and keep track of the DIN.

The Significance of Director Identification Number (DIN) in Company Incorporation

The Director Identification Number (DIN) is an important aspect of company incorporation in India. It serves as a unique identifier for directors and helps the government keep track of the directors and their activities. In this section, we will explore the significance of DIN in the company incorporation process.

Compliance with Government Regulations: Obtaining a DIN is a mandatory requirement for individuals who are appointed as directors of a company in India. It is a crucial aspect of compliance with government regulations and helps ensure transparency and accountability in the corporate sector.
Facilitation of Company Incorporation: The DIN is a pre-requisite for incorporating a company in India. Without a DIN, an individual cannot be appointed as a director of a company, and the company cannot be incorporated.
Maintenance of Records: The DIN helps the government maintain accurate records of the directors and their activities. This helps to prevent fraud and ensures that directors are held accountable for their actions.
Permanent Identification Number: The DIN is a permanent identification number that stays with the individual for their entire lifetime. This means that even if an individual is no longer a director of a company, they will still have their DIN and can use it if they become a director of another company in the future.

The Mandatory Single Director Identification Number (DIN) in the Companies Act 2013

The Companies Act 2013, which governs the incorporation and management of companies in India, has made it mandatory for individuals to have a single Director Identification Number (DIN). In this section, we will explore the provisions of the Companies Act 2013 regarding the mandatory single DIN.

Single DIN for Multiple Directorships: Under the Companies Act 2013, an individual can hold directorships in multiple companies, but they must have a single DIN for all their directorships. This helps to ensure that the individual’s activities as a director are tracked accurately and that there is no duplication of records.
Penalties for Multiple DINs: If an individual holds multiple DINs, they may face penalties and fines as per the provisions of the Companies Act 2013. The Act provides for strict penalties for individuals who violate its provisions, including imprisonment and fines.
Obligation to Notify MCA: The Companies Act 2013 imposes an obligation on individuals to notify the Ministry of Corporate Affairs (MCA) of any change in their status as a director, including the cessation of their directorship. This helps to ensure that the MCA’s records are up to date and that individuals are held accountable for their actions.
Compliance with Government Regulations: The mandatory single DIN provisions of the Companies Act 2013 are a crucial aspect of compliance with government regulations and help to promote transparency and accountability in the corporate sector.

The Companies Act 2013 has made it mandatory for individuals to have a single Director Identification Number (DIN) for all their directorships. This helps to ensure accurate tracking of the individual’s activities as a director, promote compliance with government regulations, and prevent penalties and fines for individuals and companies. It is important for individuals to be aware of the provisions of the Companies Act 2013 regarding the mandatory single DIN and take steps to comply with them.

In conclusion, obtaining a Director Identification Number (DIN) is a mandatory requirement for individuals who are appointed as directors of a company in India. It is a unique 8-digit code issued by the Ministry of Corporate Affairs and helps keep track of directors and their activities. Obtaining a DIN is a simple process that involves preparing the required documents, applying through the MCA portal, and paying the fees. With this step-by-step guide, obtaining a DIN should be a hassle-free experience.

It is important to remember that a DIN is a permanent identification number that stays with the individual for their entire lifetime. Failing to obtain a DIN can result in penalties and fines for the company. Therefore, it is crucial for directors to obtain a DIN in a timely manner to ensure compliance with government regulations.

In summary, a Director Identification Number (DIN) is an important compliance requirement for companies in India and a crucial aspect of the company incorporation process. With the right information and a step-by-step guide, obtaining a DIN should be a breeze.

FAQs

Here are some frequently asked questions about Director Identification Number (DIN):

1. How long does it take to obtain a DIN? The process of obtaining a DIN usually takes about 7-10 working days from the date of submission of the application.
2. Can a foreign national obtain a DIN? Yes, a foreign national can obtain a DIN if they are appointed as a director of an Indian company.
3. What happens if I don’t have a DIN? If a director doesn’t have a DIN, they will not be able to carry out any official business on behalf of the company. The company may also face penalties and fines for non-compliance.
4. Is a DIN required for every director of a company? Yes, a DIN is required for every individual who is appointed as a director of a company in India.