ISO Certified Premium Startup Consultancy Company
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Introduction
Any individual who wants to be a director in his own company or any other company has to take a DIN Number i.e. Director Identification Number by filing an application in Form DIR-3 with the Ministry of Corporate Affairs. It is a unique 8 digit number that is valid for a lifetime. Henceforth, an individual can possess only one valid DIN.
Section 155 of the Companies Act, 2013 specifically prohibits individuals to have more than one valid DIN Number. Every person aiming to be appointed as a company's director shall make an application for allotment of Director Identification Number or Designated Partner Identification Number to the Central Government in such form and manner and along with such fees as may be prescribed only if he is not having the DIN/DPIN earlier. Nevertheless, one can opine that if an individual has applied or had the second DIN then it shall be considered as non-compliance of the Indian law.
As per law, an individual having multiple DIN Numberis liable for a punishable offense. Hence, an individual should apply for surrender of DIN Number on account of the following conditions,
A person having multiple DIN can apply for surrender of DIN by filing an application with Central Government or Regional Director in Form DIR-5 with a requisite amount of fees.
Form DIR-5 is an e-form available on the website of the Ministry of Corporate Affairs. Certain basic information like name, email id, mobile number of DIN Number holder along with reasons for surrender of DIN Number, etc. is to be filled in such form. Documents of valid id and address proof need to be enclosed in it.
After filling the form, the same is required to be digitally attested by practicing professionals like CA, CS, or CMA. After completion of all information, the same can be filed with MCA.
If an individual or director contravenes the provisions of DIN Number by having multiple DIN and not surrendering the same, he shall be liable to:
5. In case of multiple Director Identification Number, prior obtained DIN/DPIN shall be surrender or newly obtained DIN/DPIN shall be Surrender?
For instance, First Din/DPIN obtained in 2010 and second DIN Number obtained in 2018, and then which DIN Number is to be surrendered.
According to provisions of Companies act read with pertinent guidelines and updation on the MCA site “in regards to an individual who is in possession of Duplicate/Multiple DIN/DPIN, he can retain the Oldest DIN Number only. Director Identification Number obtained subsequently has to be surrendered.”
Be that as it may, one can opine that the newly obtained Director Identification Number (implies the second DIN) shall be surrender by an individual. The surrender of the earlier obtained Director Identification Number (DIN) is not at all allowed.
6. If a person having single DIN only, whether he can surrender his DIN?
As prescribed in rules of the companies Act, RD may cancel or surrender the Director Identification Number on the basis of the following mentioned situations.
As per Rule 11 (a-e) stated the condition for submission of DIN Number like (Lunacy, Death, Bankrupt etc).
Nevertheless, Rule 11(f) states that “on a submission made in E-Form DIR-5 by the DIN holder i.e. director for cancellation of his or her Director Identification Number along with a statement that he has never been appointed as a director in any company and the said DIN has never been used for filing of any document with any authority, the Central Government after the scrutiny may neutralize such DIN Number (Director Identification Number)”
As per Rule 11(f) when an individual makes an application in E-form DIR-5 for the surrender of his DIN Number (Director Identification Number) to the Regional Director has to guarantee the following conditions:
-That he has never been employed as a director in any company or LLP or any entity; and
-The said Director Identification Number has never been used for filing of any document with any authority.
-Consequently, one can propose that Single DIN (Director Identification Number) which was never used by an individual can be surrendered. But if the DIN (Director Identification Number) has been used earlier then it can’t be surrender.
7. How do I surrender a deactivated din?
So as to deliberately give up the DIN (Director Identification Number), the holder would be first required to reactivate the DIN Number by documenting DIR-3-KYC with an extra government expense, and just from that point, the surrender application can be filed.
Practical Advice to wrap up
In case the DIN Number holder succeeds for all the circumstances as already stated as required to voluntarily surrender the DIN Number and he or she does not surrender the DIN Number (Director Identification Number) and also do not file the DIR-3 KYC E-form within the prescribed due date, the Ministry of Corporate Affairs is bound by law to disable the DIN Number and a deactivated DIN Number cannot be filed for deliberate cancellation. In order to voluntarily surrender the DIN Number, the holder would be first required to activate the DIN Number by filing DIR-3-KYC with a supplementary government charge, and only subsequently the surrender application can be filed.
For more information contact us on given communication details:
Email Id swati@neusourcestartup.com and Phone Number 9540026175.
The NeuSource Startup Mind is the finest business startup consultant that offers various services of registration like Proprietorship Firm Registration, Partnership Firm Registration, LLP Registration, Company Registration, GST Registration, Copyright Registration, ISO Registration Trademark registration and other FSSAI License etc.
03 Jun
Ideas are easy but Implementation is hard. If you're seriously passionate about something and you work hard, then I think you will be successful. Neusource helps you to make your start up successful.
