Director Identification Number (DIN) is a unique identification number given to an existing or a potential Director of any company which is incorporated. DIN came into existence after the insertion of the section 266A & 266B of the Companies Act, 1956 (as amended vide Act No 23 of 2006).
Why Director Identification Number (DIN)
Many a times it is seen that a company is created and it raises money from investors and public and vanishes with the Director and are not been traceable. The main purpose of introducing Director Identification Number (DIN) was to keep a Date base of the Directors of the the incorporated companies and to keep complete information about the Directors so that they dont cheat anyone and in case they do, can be traceable.
Director Identification Number (DIN) not only helps fixing the identity of the Director but also relates his participation in others companies, past and present. In case any change of address or particular is faced by the DIN holder, they are suppose to inform the central government about the same. So this keeps the database ‘live’ always.
As per the recent amendment in the Companies Act, 1956, DIN has become mandatory for all the directors. DIN is individual specific and not company specific, so only one DIN is required per director/person irrespective of how many companies he is managing. This is a pre-requisite to incorporate a new company.
How to Apply for Director Identification Number (DIN)
This a simple one day process where you can apply for DIN online. PAN number is mandatory of Indian Citizen and Passpost for the Foreign national. Here are the simple steps to follow for applying your DIN.
Chances are that you will get lost when you go to http://www.mca.gov.in/MCA21/ . It took me atleast an hour before i could figure out what to do and how to do . First important thing is you have to open this site in Internet Explorer whether you like it or not, and java platform also have to be activated on the browser, only then will you be able to register your self and login.
Step 1 : Go to website http://www.mca.gov.in/MCA21/ and create a new User if you are not already registered there. Once you log-in click on the link Director Identification Number, or go to this link http://www.mca.gov.in/MCA21/Din.html , You can click on the ‘DIN-1 Form ‘ which will prompt you to download the pdf form(PDF is highly interactive) which you can fill offline and it allows you to attach your scanned photo and other ID and Address Proof with the document in the PDF itself.
Document Needed to be attached
. High resolution photograph of the applicant
· Proof of identity;
· Proof of residence;
· Proof of Date of birth
· Affidavit in the case of single name as per the guidelines
· Copy of passport in the case of foreign nationals
*Note – You don’t have to log-in to download the DIN-1 Form. Log-in is required to upload the form and to make payment
Step 2: Once the form is filled and all the necessary documents attached with the PDF, you have to log-in. Again you will be lost as to where to upload it. Here is what you can do – when you log-in the site shows an user page with three sections “Services, eForms, My Documents, you can click on eForm and then click on eForm Upload.
*Note eForm has to be Digitally Signed.
Step 3 : After upload you have to make the fee payment for the DIN which is 100 which has to be paid only through electronically ie., through Net banking/Credit Card.
Step 4: Once the payment is done DIN will be generated immediately depending on who has signed the Form.
- In case Form DIN 1 is signed by a practicing professional ie., Charted Account, Approved DIN shall be generated.
- In case Form DIN 1 is signed by an applicant or by the Managing Director/ existing director of the Company in which the applicant is a Director or the Company Secretary in full time employment of the Company, provisional DIN shall be generated.
*Note: You don’t have to worry if you get a provisional DIN, in which case MCA(Ministry of Corporate Affairs) DIN cell will examine the e Form DIN 1 and same shall be disposed of within one or two days, and you will get your DIN number.
DIN applications instructions here http://www.mca.gov.in/MCA21/dca/din/DIN.html
So thats it, You are just 4 steps away fro getting your DIN. Its really that simple, most of the time we think we don’t have time for all these thing and we hire a lawyer who may charge 300 for the same.
Intimate DIN to your company : Within one month of the receipt of Director Identification Number(DIN) from the Central Government, intimate your Director Identification Number to the company or all companies wherein you are director. Such intimation is required to be given in Form DIN-2.
More than one DIN: Its illegal to hold more than one DIN, in which case you have to surrender the DIN to ROC
DIN Corrections: You can do the corrections at no additional cost by upload the DIN-4 Form which you can download from the MCA website, go here http://www.mca.gov.in/MCA21/dca/din/DIN.html
Common causes of DIN rejections here http://www.mca.gov.in/MCA21/Din_common_cause.html
Hence in the ending I would like to conclude that if you need a DIN for yourself its very easy and not to mention its cheap!