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A lookthrough to Director Identification Number ‘DIN’. By Shreya Rajan

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A lookthrough to Director Identification Number ‘DIN’.

Author: Shreya Rajan, Faculty of Law, ICFAI University, Dehradun

What is a DIN?

Director Identification Number (DIN) is a unique identification number allotted by the Central Government to an existing director or a person intending to be a director of a company. As per the amendment in Companies Act, 1956, obtaining a DIN is mandatory for all directors across India. Also, DIN is individual specific and not company specific, hence there is only one DIN for each person, irrespective of the number of companies he heads as a director.

Why DIN?

Many a times it so happens that a startup creates funds from investors and public, and then vanishes and even the directors become untraceable. It is to stop such fraudulent activities that a DIN is allotted to directors of existing companies as well as companies under registration. Therefore, DIN was introduced to maintain a database of the director of an incorporated company and to make available complete information regarding him.

What does a DIN contain?

A DIN contains entire information about a company’s director, like his full name, father’s name, pan card number, date of birth, photograph, email address, current and permanent address, etc.

How to obtain a DIN?

  • Go to http://www.mca.gov.in/MCA21/ and fill all the required personal details in the form, along with your digital signature and self- attested affidavit.
  • Go to the website and register yourself. You will then get a login id.
  • Login to your account, upload the filled form and make a payment of Rs 100.
  • The payment completes the DIN application process; the application is checked and DIN is allotted within 2 days.

Statutory Provisions under Companies Act, 2013

  • Section 152(3) states that a DIN under Section 154 is mandatory for every person appointed as Director to a company.
  • Section 153 talks about application for allotment of DIN. It states that an application has to be made as well as filed in the prescribed manner, including electronic filing. After filing the application, the existing directors can now continue in their position.
  • Section 154 states the procedure for allotment of DIN. Once the application is made, it is now the duty of the Central Government to allot a DIN to a person within one month in such a manner as may be prescribed.
  • Section 155 states that no individual can have more than one Director Identification Number.
  • Section 156 says that every director has to intimate his DIN to all the companies in which he is director within one month of being allotted the number by the Central Government.
  • Section 157 obligates the company/companies to furnish the information regarding DIN to the Registrar or any other officer/authority specified by the Central Government, within 15 days of receipt of information about the DIN from the concerned director, alongwith the prescribed fees or additional fees as prescribed under Section 403 in the manner prescribed. Also, sub-section (2) states that if the company fails to intimate such information even within the period prescribed under Section 403, the company shall be liable to a fine of Rs 25,000 extending uptoRs1 lakh and every officer in default shall be punishable in the same manner.
  • Section 158 says that every company has to mention the DIN while furnishing return, information or particulars required to be furnished under the Companies Act, in case the same relates or contains any reference to the director.
  • Section 159 talks about the punishment in case of contravention to the provisions of Section 152, 155 and 156, and states that any person/company contravening such provisions shall be punishable with imprisonment of upto 6 months or with fine extending uptoRs 50,000. Also if the contravention continues, then a further fine extending to Rs 500 every day after first is applicable.

 

 

 

 

 

 

 

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Disclaimer:

This Article was prepared or accomplished by Shreya Rajan in his personal capacity. The opinions expressed in this article are the author’s own and do not reflect the view of the LawOF.in

The Contents of this Website are informative only and for the benefit of the general public. Even though every care has been taken to ensure the correctness of information and procedure, the www.lawof.in is not responsible for any inadvertent errors and the same may please be brought to the notice through e-mail: info@lawof.in The LawOF do not own any responsibility for the views expressed by the Author in the Article and for the errors, if any, in the information contained in the LawOF and the author shall be solely responsible for the same.

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