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DIRECTOR IDENTIFICATION NUMBER (DIN) [SECTION 153 TO SECTION 159]

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DIRECTOR IDENTIFICATION NUMBER (DIN) [SECTION 153 TO SECTION 159]

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Director Identification Number (DIN) means an identification number allotted by the Central Government to any individual, intending to be appointed as a director or to any existing director of a company, for the purpose of his identification as a director of a company.

It is provided that the Director Identification Number (DIN) obtained by the individual prior to notification of the “Specification of Definition Details Rules” shall be the DIN for the purpose of the Companies Act, 2013.

Further, it is to be noted that DIN shall include the Designated Partnership Identification Number (DPIN) issued under section 7 of the Limited Partnership Act, 2008 and rules made thereunder.

SECTION 153

Section 153 deals with the filing of application for allotment of DIN. Accordingly, every individual intending to be appointed as director of company shall make an application for allotment of DIN in the prescribed form and manner and along with the prescribed fees.

Further, Rule 9 of the Companies (Appointment and Qualifications of Directors) Rules, 2014 states that the following procedure for making an application for allotment of DIN before appointment in an existing company:

1. Filing of Application: Every applicant, who intends to be appointed as director of an existing company shall make an application electronically in Form DIR-3, to the Central Government for allotment of a Director Identification Number (DIN) along with the prescribed fees.

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It is provided that in case of proposed directors not having DIN, the particular of Maximum three directors shall be mentioned in Form No. INC-32 (SPICe) and DIN may be allotted to maximum three proposed directors through Form INC-32 (SPICe).

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2.Providing of electronic system to facilitate submission of application: The Central Government shall provide an electronic system to facilitate submission of application for the allotment of DIN through the portal on the website of the Ministry of Corporate affairs.

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3.Filing of required information in Form attached with relevant documents: The applicant shall download Form DIR-3 from the portal, fill in the required particulars sought therein, verify and sign the form and after attaching copies of the following documents, scan and file the entire set of documents electronically: –
(i)Photograph.
(ii)Proof of identity.
(iii)Proof of residence.
(iv)Board resolution proposing his appointment as director in existing company.
(v)Specimen signature duly verified.

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4.Submission of digitally signed Form: Form DIR-3 shall be signed and submitted electronically by the applicant using his or her own Digital Signature Certificate and shall be verified digitally by a company secretary in full time employment of the company or by the managing director or director or CEO or CFO of the company in which the applicant’s is intended to be appointed as director in an existing company.

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5.In case the name of a person does not have a last name, then his or her father’s or grandfather’s surname shall be mentioned in the last name column along with the declaration of the same in Form DIR-3A.

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SECTION 154

According to Section 154, the Central Government shall allot a DIN to the applicant in the prescribed manner within one month from the receipt of application.

Rule 10 of Companies (Appointment and Qualifications of Directors) Rules, 2014 provides the following procedure for allotment or rejection of DIN.

1.Generation of application number: On the submission of the Form DIR-3 on the portal and on payment of the requisite fees, an application number shall be generated by the system automatically.

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Provided that no application number shall be generated in case of the person applying for DIN is a national of a country shares land border with India, unless necessary security clearance from the Ministry of Home Affairs, Government of India has been attached along with application for DIN.

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2.Communication of issue of DIN: After generation of application number, the Central Government shall process the application received for allotment of DIN and decide on the approval or rejection thereof and communicate the same to the applicant along with the DIN allotted in case of approval by way of a letter by post or electronically or in any other mode, within a period of one month from the receipt of such application.

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3.In case of defective/ incomplete application: If the Central Government, on examination, finds such application to be defective in any respect, it shall give intimation of such defect or incompleteness, by placing it on the website and by email to the applicant who has filed such application. The applicant shall be director to rectify the defects or incompleteness by resubmitting the application within a period of 15 days of such placing on the website and email.

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4.In case of rejection or invalidation of application, the fees so paid with the application shall neither be refunded nor adjusted with any other application.

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SECTION 155  

According to Section 155, no individual, who has been already allotted a DIN under Section 154, shall apply for, obtain or possess another DIN.

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SECTION 156

According to Section 156, every existing director shall, within one month of the receipt of DIN from the Central Government, intimate the DIN to the company or all the companies wherein he is a director.

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SECTION 157

According to Section 157, every company shall, within 15 days of the receipt of intimation under Section 156, furnish the DIN of all its directors to the Registrar or any other officer of authority as may be prescribed by the Central Government with such fees or additional fees as may be prescribed.

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SECTION 158

According to Section 158, every person or company, while furnishing any return, information, or particulars as are required to be furnished under the Companies Act, 2013, shall mention the Director Identification Number in such return, information or particular in case such return, information or particular relate to the director or contain any reference of any director.

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SECTION 159

Section 159 provides that if any individual or director of a company makes any default in complying with any of the provisions of Section 152, Section 155 & Section 156, such individual or director of the company shall be liable to penalty as under:

• Penalty upto Rs. 50,000 and where the default is a continuing one, with a further penalty upto Rs. 500 each day after the first during which such default continues.

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