Understanding Fees for Filing DIR-3 KYC: A Comprehensive Guide

Introduction

The Directorate of Revenue Intelligence (DRI) requires all directors of companies registered in India to file a Know Your Customer (KYC) declaration in Form DIR-3. This declaration is crucial for verifying the personal information and identity of company directors, ensuring compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. Understanding the fees associated with filing DIR-3 KYC is essential for compliance purposes.

Fees for Filing DIR-3 KYC

The fees for filing DIR-3 KYC vary depending on the mode of filing:

• Online Filing: For online filing through the MCA portal, the fee is Rs. 5000/- per director.
• Physical Filing: For physical filing at the Registrar of Companies (ROC), the fee is Rs. 6000/- per director.

Payment Modes

• Online Filing: Payments can be made through net banking, credit card, or debit card.
• Physical Filing: Payments can be made through demand draft drawn in favor of "Pay and Accounts Officer, MCA."

Consequences of Non-Compliance

Failure to file DIR-3 KYC within the stipulated time or providing incorrect information can result in penalties and consequences, including:

• Monetary Penalty: A fine of up to Rs. 1 lakh may be imposed.
• Director Disqualification: Repeated non-compliance may lead to disqualification of directors.
• Criminal Prosecution: In severe cases, criminal charges may be filed.

Transition to Online Filing

Due to the convenience and efficiency of online filing, companies are strongly encouraged to file DIR-3 KYC electronically. This process allows for real-time updates, reduces errors, and provides immediate acknowledgment.

Stories for Humorous Understanding

Story 1:

A forgetful director, Mr. Scatterbrain, realized on the last day of the filing deadline that he had neglected to complete his DIR-3 KYC. In a panic, he rushed to the ROC office with an incomplete form, hoping to sneak it in just under the wire. Unfortunately, the clerk noticed his missing signature at the last moment, and poor Mr. Scatterbrain had to submit his form online, paying an additional processing fee.

Lesson Learned: Always keep important deadlines in mind and ensure you have all the required documents before filing.

Story 2:

Ms. Know-It-All, a self-assured director, believed the DIR-3 KYC filing was a mere formality. She assumed she could fill out the form in minutes and proceed with her day. However, as she began completing it, she encountered unfamiliar terms and struggled to understand the questions. After hours of frustration, she realized the importance of seeking professional assistance to avoid costly errors.

Lesson Learned: Don't assume you know everything. Seek guidance from qualified professionals when necessary.

Story 3:

Mr. procrastinator decided to put off filing his DIR-3 KYC until the last possible moment. Unfortunately, Murphy's Law struck, and his internet connection went down just as he was about to submit the form online. Desperate to meet the deadline, he raced to the ROC, only to find a long queue of people waiting to file their forms physically. In the end, he faced a heavy fine for late filing.

Lesson Learned: Never leave important tasks to the last minute. Plan ahead and anticipate potential obstacles.

Useful Tables

Effective Strategies for Compliance

• Set timely reminders for filing deadlines.
• Keep all required documents and information readily accessible.
• Seek professional guidance from chartered accountants or legal advisors if necessary.
• Review the DIR-3 KYC form thoroughly before filing.
• File online to ensure accuracy and efficiency.

Tips and Tricks

• Consider using a digital signature certificate (DSC) for online filing to save time and reduce paperwork.
• Keep copies of all filed documents for future reference.
• Use the MCA portal to track the status of your filing.

Pros and Cons of Online and Physical Filing

FAQs

1. When is the deadline for filing DIR-3 KYC?

The deadline is 30th September of the financial year following the year in which the director was appointed or re-appointed.

2. Can I submit a single DIR-3 KYC form for multiple directors?

No, each director must file a separate DIR-3 KYC form.

3. What documents are required for online filing?

• Scanned copy of PAN card and identity proof (Aadhaar card, passport, or DL)
• Scanned copy of the appointment letter or board resolution
• Recent photograph

4. Can I make corrections to the filed DIR-3 KYC form?

Yes, you can file a revised DIR-3 KYC form with the necessary corrections within 30 days of the original filing.

5. What are the penalties for late filing?

Late filing can result in a fine of up to Rs. 1 lakh per director.

6. How can I check the status of my DIR-3 KYC filing?

You can check the status on the MCA portal using your CIN and SRN.

7. Do I need to file DIR-3 KYC for directors of foreign companies?

Yes, directors of foreign companies that have a place of business in India must file DIR-3 KYC.

8. What is the significance of DIR-3 KYC?

DIR-3 KYC helps strengthen India's AML and CTF regime by verifying the identity and information of company directors.