Non filing of DIR-3 KYC form amounts to Disqualification of Director?

By Anonymous


Nonfiling of DIR-3 KYC form amounts to Disqualification of Director?

 While the Disqualification of Directors is not a new concept, recent action by the Ministry of   Corporates Affairs (MCA) under Companies Act, 2013, disqualification has become a         talk of the town. Every Individual who was a director of non-active Companies has found out that their DIN is disabled and they are not allowed to be a Director on any other Company in India.

What is the Disqualification of Directors?

Section 164 of the Companies Act, 2013 deals with Disqualification of Directors the most important part is Section 164(2) which deals with periodic disqualification.
As per Section 164 (2) of the Companies Act, 2013, “No person who is or has been a director of a company which.


How disqualification is affecting Directors?

An Individual who is disquieted under Section 164(2) is not eligible to be appointed or continue to be Director on board of any other company as well. In fact as per MCA, his/her DIN is shown as “Disqualified by RoC u/s 164(2)”


What will be the impact of the non-filing of DIR 3 KYC?

All Individual who has not filed DIR 3 KYC, can file the same anytime by paying a one-time filing fee of Rs. 5,000 as ROC Fees.

The Company will not be able to file any forms containing DIN of the Individual whose DIN is deactivated due to non-filing of DIR 3 KYC including INC 22A Form.

Will non-filing of DIR 3 KYC will amount to ‘Disqualification’?

The answer is NO. Disqualification as per the Companies Act, 2013 is covered under Section 164(2) whereas DIR 3 KYC is an annual requirement but failure to file the KYC form will not amount to disqualification of Directors. This means that Disqualified Director is different than the Directors who have failed to file DIR3  KYC.


Comments

Post a Comment

Popular posts from this blog

Drug License (Retail/Wholesale) Registration.

By
Image
Drug License (Retail/Wholesale) Registration Licensing is mandatory to do business in Drugs & Cosmetics in India. The provisions for this have been made in the Drugs & Cosmetics Act, 1940 which is applicable to the whole of India. It is an Act to consolidate all the laws relating to drugs & cosmetics, which established the Drugs Control Department. In 1964, the Act was amended to include Ayurvedic & Unani drugs. In case a business is operating in more than two states, it has to obtain a drug license in every state in which business is being carried on. Drug license is location-specific. If drugs are sold or stocked for sale at more than one place, the application shall be made, and license shall be issued, in respect of each such place except migrant vendors. Once the license is granted to the business, all such a License must ensure that all the conditions in the drug license comply at all the time during the course of the business. All the records /reg...
Read more

What is TAN? and How is obtain and if there is duplicate TAN is Allotted then how can cancel.

By
Image
What is TAN? and How is obtain and if there is duplicate TAN  is Allotted then how can cancel. What is TAN?: TAN or Tax Deduction and Collection Account Number is a 10 digit alphanumeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates. Who must apply for TAN? : All those persons who are required to deduct tax at source or collect tax at source on behalf of the Income Tax Department are required to apply for and obtain TAN. Why apply for TAN?: The provisions of section 203A of the Income-tax Act require all persons who deduct or collect tax at source to apply for the allotment of a TAN. The section also makes it mandatory for TAN to be quoted in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. Why is it necessar...
Read more

MCA to introduce "SPICe+" form to replace existing SPICe form.

By
Image
MCA to introduce the "SPICe+" form to replace the existing SPICe form.  Stakeholders may please note that as part of the Government of India’s Ease of Doing Business initiative , the Ministry of Corporate Affairs would be shortly notifying   replacing the existing SPICe form to SPICe+ form SPICe+   would be an integrated Web form offering multiple services  name reservation, incorporation, DIN allotment, mandatory issue of PAN, TAN, EPFO, etc. SPICe+   web form, RUN shall be applicable only for the change of name of existing companies. However, incorporation of companies for names reserved through the existing RUN service shall continue to be filed in the existing SPICe form along with related linked forms as applicable and if marked under resubmission shall be resubmitted in SPICe form Resubmission of SPICe forms submitted prior to the date of deployment of  SPICe+   webform shall also be filed in the existing SPICe form and related...
Read more