What, why and how of Directors Identification Number (DIN)
There are certain questions that we get from our clients about the Directors Identification Number. In this article we try and discuss the reason why a DIN is required and what is the importance of the DIN.
1. What is a Directors Identification number (DIN)?
Directors Identification Number (DIN) is a unique number provided by the Registrar of Companies in India to an existing director or a potential director of a Public Limited or Private Limited Company registered in India.
2. Why do you require a Directors Identification Number?
The rationale for introducing a DIN was majorly to keep track of and trace Directors in any company. A DIN provides complete information about a Director. This information is also useful in case there is a fraud committed and the corporate veil of the company is lifted.
A DIN also provides information of a particular director’s participation in different other companies in past and present. Any update of information of a Director shall be intimated to the Registrar of Companies.
DIN is mandatory and is unique to a director and not to a company. In other words, one director shall have only one DIN.
3. How to obtain a Directors Identification Number?
Form DIR – 3 needs to be filed with the required documents as below with the required fees. It normally takes around 1-2 days for application of DIN to be approved.
4. What documents are required for application of Directors Identification Number?
- High resolution photograph of the applicant
- PAN is mandatory now. So copy of pan is mandatory for identity, name, father's name and date of birth.
- Proof of father's name is not required in the case of foreign nationals
- Copy of passport is mandatory as an id proof in the case of foreign nationals.
- Present Address proof which should not be older than 2 months
Note: You have to mandatorily take the Director Identification number when you register your private limited company, in case the proposed directors do not already have it. For more information you can visit www.registrationsindia.com