22.98 Lakh Directors Filed their KYC for FY24-25: What You Should Know

The Ministry of Corporate Affairs (MCA) has announced that a lot more directors are submitting their KYC (Know Your Customer) forms this year. By the end of September 2024, 22.98 lakh (almost 23 lakh) forms were filed. That’s more than the 22.02 lakh forms submitted in the whole of last year! This year’s filings are also much higher compared to the same period last year when only 20.54 lakh forms were submitted.

Why Is This Happening?

The MCA has made it easier for directors and businesses to submit their forms through the MCA-21 portal. This online system is part of the government’s plan to make it simpler for people to start and run businesses. By improving the system, MCA helps businesses focus on what matters: growing and operating smoothly.

To keep things running well, a special team has been created to fix any issues people might have while using the MCA-21 portal. They are also giving guidance to help directors submit their forms without problems.

Who Is Required to File DIR-3 KYC?

• For FY 2018-19: Any director who was assigned a Director Identification Number (DIN) on or before March 31, 2018, and whose DIN is ‘Approved,’ had to file the DIR-3 KYC form by October 5, 2018.
• From FY 2019-20 onwards: Every director who has an Approved DIN by the end of a financial year must submit the DIR-3 KYC form before September 30th of the next financial year.

What Happens If You Don’t File?

If a director doesn’t file the DIR-3 KYC form by the due date, their DIN will be marked as ‘Deactivated.’ To reactivate, the director will submit the form and pay a fee of Rs. 5000.

Why It’s Important to Check DIR-3 KYC Filing Status

Ensuring that the directors of companies you engage with have completed their DIR-3 KYC filings helps mitigate the risk of dealing with non-compliant entities.

Directors whose KYC filings are not up-to-date may face regulatory issues, which could affect their companies. These regulatory problems could translate into delayed payments, contract breaches, or legal liabilities for your business, making ensuring compliance from the outset vital.

Associating with companies whose directors are not compliant could tarnish your reputation. Proactively verifying KYC compliance helps maintain a positive image and demonstrates your commitment to ethical business practices.

How to Check DIR-3 KYC Status

To know the DIR-3 KYC status of any director, you may follow these steps in InstaFinancials:

• Log in to InstaFinancials
• Navigate to InstaTools
• Click on DIR-3 KYC Status
• Enter the DIN Number to check the status for FREE.

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