Director Identification Number: The First Step to Qualify as a Director of a Pvt Ltd Company

 Many aspirants dream of holding the prestigious position of a Director in a company and contract on its behalf. Believe us, it’s not a cakewalk. One who chooses to appoint oneself as a Director manages, controls and coordinates the organisation’s business affairs. Do you belong to that group of interested candidates who all yearn to be responsible for the growth and prosperity of companies? Then, take the first step by applying for a Director Identification Number (DIN). Learn more about it from the upcoming discussions, as raised by MPVD & Associates – a renowned and reputed CA firm in Kolkata.



Understanding DIN & its Usage

When starting a company, the Central Government allots an 8-digit unique number to an individual striving to be a Director of an organisation. This number has lifetime validity. The purpose of the Central Government is to maintain the director’s details in a database through this number. Whenever an application, return or information is submitted in the name of the company under law, the director must sign and mention his/ her DIN underneath.

How to Apply for DIN?

It’s simple! One has to fill up all three forms below electronically, sign digital and upload them on the MCA21 portal:

  • SPICe Form – As explained by every Tax advisory firm in Kolkata, it is an application to allot DIN to individuals becoming Directors of new companies for the first time. Proof of identity and residence are required to be attached along with the form.
  • DIR-3 Form – On the contrary, this application is for individuals yearning to hold the position of a director in an existing organisation. Supporting documents necessary with the form are ID proof, residence proof, photograph and verification. Passports are mandatory for foreign nationals. All documents have to be attested by a GST firm in Kolkata. In his absence, a CS or CMA can also attest the copies.
  • DIR-6 Form – Any change in the details of the directors has to be filed through this form.

The DIN generation usually takes a month to approve, with the Central Government communicating the unique number to the applicant. Those whose application is rejected can get 15 days to rectify the reason put forward through email and website to satisfy the Government. The DIN allotment shall be successful if everything proceeds smoothly.

Once an individual receives DIN, the person must inform the organizations where he/ she is the Director. The companies, in turn, inform the RoC within 15 days of their intimation.



Circumstances Leading to DIN Cancellation

Under certain situations, one’s DIN can stand canceled. Here go the reasons:

  • If the concerned person expires
  • Duplicity in DIN as issued to the Director
  • The involved person is an insolvent as adjudicated
  • Fraudulent means were used to obtain the DIN
  • The court has declared the person to have an unsound mind

Postscript:

Whether you are registering a company or in a quest to become a Director of existing Incorporation, the hassles could be minimized by seeking the services of a CA firm in Kolkata. CA experts can walk you through the process by filing for a DIN with the Ministry of Corporate Affairs to initiate documented follow-ups. MPVD & Associates - a specialist in company audits and accounting, recommends all to seek professional assistance for such related specialized services to take the chore and uncertainties out of the jobs.

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