The Director Identification Number (DIN) in India is a unique 8-digit identification number assigned to an individual who wishes to become a director or is already a director of a company registered under the Companies Act, 2013. It is an essential requirement for individuals who wish to hold a position as a director on the board of any Indian company.The Ministry of Corporate Affairs (MCA) issues DINs to individuals upon verification of their identity and other relevant details.
In this blog we will learn about the significance of DIN and its benefits to directors.
DIN obtaination through online process
The process of obtaining a DIN number is straightforward. Individuals can apply for a DIN by submitting an application through the MCA portal along with the necessary documents and fees or it can be done offline also. Here are the steps by which you can apply online for the DIN are :
- Check eligibility
The first step is to check if you meet the eligibility criteria for obtaining a DIN. As per the Companies Act, 2013, every person who intends to become a director in a company must obtain a DIN. Existing directors of companies registered under the previous Companies Act, 1956 are also required to obtain a DIN.
- Prepare necessary documents
The next step is to prepare the necessary documents required for DIN registration. These documents include a self-attested copy of the individual’s PAN card, proof of identity and proof of address.
- Submit DIN application
Once the documents are prepared, the individual can submit their DIN application through either an online or offline process. The online process requires the individual to apply through the Ministry of Corporate Affairs (MCA) website by filling in the DIN application form and uploading the necessary documents. The offline process requires the individual to download and fill in the DIN application form, attach the necessary documents, and submit it to the MCA or a Registrar of Companies (ROC) office.
- Pay DIN fee
The final step is to pay the DIN fee. The fee for obtaining a DIN is Rs. 500 for online applications and Rs. 1,000 for offline applications. The fee can be paid online through the MCA website or through a bank challan for offline applications.
Significance of Director Identification Number (DIN)
The Director Identification Number (DIN) serves as a critical tool for regulating and monitoring the functioning of companies in India. It is a mandatory requirement for individuals seeking to become directors of Indian companies, ensuring that only qualified and eligible individuals hold directorial positions.
- Prevention of Fraud
The Director Identification Number (DIN) helps prevent fraud and other malpractices by ensuring that directors are held accountable for their actions. The unique identification number also facilitates transparency in the functioning of companies, helping stakeholders and authorities monitor and regulate their operations.
- Ease of Doing Business
The Director Identification Number (DIN) also serves as a crucial aspect of the government’s initiative to promote ease of doing business in India. It simplifies the process of appointing directors and ensures transparency in the functioning of companies, which in turn promotes investor confidence and business growth.
- Renewal and Cancellation of Director Identification Number (DIN)
The Director Identification Number (DIN) has a validity period of a lifetime, meaning that it does not need to be renewed. However, individuals are required to update their information in case of any changes. The MCA also has the power to cancel a DIN in cases of non-compliance or fraudulent activities.
Conclusion
The Director Identification Number (DIN) is a critical requirement for individuals seeking to hold directorial positions in Indian companies. It serves as a tool for transparency, accountability, and regulation, promoting ease of doing business and preventing fraud. By obtaining and maintaining a DIN, directors can fulfill their duties and contribute to the growth and success of Indian companies.