Business Registration in India - DIRECTOR IDENTIFICATION NUMBER

1. Director Identification Number Allotment  - Application

Notification no. G.S.R. 648E dated October 19th, 2006 educates the populace on the matter of the addition of Section 266A of the Companies (Amendment) Act, 2006 and has in force as of November 1, 2006. The new section clearly elaborates on who is required to apply for a Director Identification Number (DIN) to the Central Government of India. THIS LIST INCLUDES:

  • Any individual who is intended for the post of Director of a company.
  • Any Director of a Company who may have been appointed to their post before the Companies (Amendment) Act, 2006.

Any individual who has applied for a DIN can be appointed as the Director of an Enterprise, or can continue to hold until a DIN has been allotted to them.

Director Identification Number – Allotment Procedure
Section 266B under the 
Companies (Amendment) Act, 2006 ensures that the Central Government will allot a DIN to an applicant within one month of the application under Section 266A.

2. Allotment of Director Identification Number

Section 266B has been inserted by the Companies (Amendment) Act, 2006, and it sanctions that the Central Government shall, within a month of the receivable of the receipt of the application under section 266A, allot a Director Identification Number to said applicant.

3. The Director is expected to intimate his company/ companies, post the allotment with the details of Director Identification Number

Section 266D under the Companies (Amendment) Act, 2006 suggests that the Director is obligated to intimate the company/companies about the allotment of the DIN within one month of its receipt. Form DIN-2 should be used for the same.

Director Identification Number – Important Features

  •  Any person who is a Director of a company or is soon to be appointed to said post should apply for a DIN. It is therefore mandatory for all Directors within a company to possess a DIN of their own.
  •  An Application for a DIN by an Individual should be submitted along with a proof of identity, such as a Driving License, Voter ID card, PAN card, ration card, bank statement and/or electricity bill.
  •   Proof of Residence is also required along with a DIN Application. This can be verified by providing documents such as a Voter ID card, passport, electricity bill, telephone bill or bank statement.
  • E-filing of forms and documents needs a DIN, and a PAN card will not suffice.
  • Directors of Indian companies who are not Indian citizens must be in possession of a DIN.
  • A DIN is not necessary for Directors of Multi National Companies, and who have an office outside India. No matter how many companies an individual holds the position of Director for; he will require only one DIN. The Directorships of an individual will be mapped through the DIN database.
  •  The DIN will not be cancelled even upon the resignation of the individual.

5. Prerequisites before appointing an individual to the post of Director

Its very important to check that the following formalities are met at the time of incorporation, in the case of appointment of first directors of a company:

  • Confirm whether the proposed director is in possession of Directors identification Number (DIN). If the individual does not have a DIN,, apply in Form DIN. No company shall appoint or re-appoint any individual as Director of their firm unless they have been allotted a Director Identification Number under section 266B.
  • Obtain consent in plain paper. This shall be filed with the e-form 32.
  • E-form 32 in respect of the first directors is to be prepared and filed with the Registrar accompanied with the consent to act as a director.
  • Any agreement that a company proposes to enter into with any individual in regards to their appointment as a Managing or full-time Director shall be filed with the registrar.
  • E-Form 32 must be filed within 30 days after incorporation. It is advisable to file it at the time of filing of the other documents.
  • Particulars in the Register of directors shall be entered with respect to each Director immediately after their absorption into the company.
  • Particulars of the Directors’ shareholding will be entered in the Register of directors’ shareholdings [Section 307].
  • Information pertaining to the director’s interests in other companies and firms is mandatory. The names of his relatives for the purpose of Section 297 and 299 of the Act will also be obtained. A general notice of the interests under section 299 will be given in Form 24AA, prescribed under the Companies (Central Government’s) General Rules & Forms, 1956.

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