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The Ministry of Corporate Affairs ("MCA") has
notified the Companies (Appointment and Qualification of Directors)
Amendment Rules, 2025 ("Amendment Rules"). The Amendment
Rules shall come into effect from 31st March 2026.
The Amendment Rules primarily rationalizes the director's
identification number ("DIN") KYC compliance. The
comparatives are enumerated in the table below:
| Particulars | Position prior to Amendment Rules | Position after Amendment Rules |
|---|---|---|
| Recurring director KYC | Every director holding valid DIN must complete one-time password (OTP) based annual KYC on or before 30 September every year | Every director holding valid DIN must complete one-time password (OTP) based KYC on or before 30 June every third consecutive year |
| Event based director KYC | Updates to mobile number or email address require submitting e-Form DIR-3 KYC. | Updates to mobile number, email address, or residential address must be submitted within 30 days of change using DIR-3 KYC Web form. |
| Change in address | Changes for foreign nationals require attestation of address proof by an authority outside India, per the certification language in e-Form DIR-3 KYC. | The certification language in DIR-3 KYC Web form omits this requirement, so attestation of address proof by an authority outside India may not be needed. |
The Amendment Rules discontinue the earlier forms DIR-3 KYC and DIR-3 KYC-Web, introducing a single DIR-3 KYC Web form.
Our Comments
The MCA has rationalized the DIN KYC by removing annual compliance requirements and making it applicable every three years. This would not only substantially reduce compliance burden on the directors but also reduce strain on the MCA system. Although, maintaining the three-year compliance data base will be task for the companies and professionals, however, it will certainly relive administrative pain of obtaining OTP annually from the directors particularly foreign nationals and frequent travellers.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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