FAQ ON SURRENDER OF DIN

 

1. Whether an individual can have more than one Director Identification Number (DIN)?

 

Section 153 of the Companies Act, 2013, prohibits every individual who has already been allotted a DIN under Section 154, from holding or applying for another DIN. Thus, an individual cannot have more than one DIN.

 

2. In case an individual is holding two DINs, which he has acquired by mistake, which DIN needs to be surrendered? First DIN or the Second DIN?

 

An individual who is in possession of Duplicate/Multiple DINs, can retain only the Oldest DIN. DINs obtained later have to be surrendered. The data related to both the DINs will be merged with the Old DIN post surrendering of Duplicate/Multiple DINs.

 

3.       Whether a deactivated DIN can be surrendered?

 

In case, the DIN holder fails to file the Form DIR-3 KYC before 30^th September every year, the system will mark all non-compliant DINs against which DIR-3 KYC form has not been filed as ‘Deactivated due to non-filing of DIR-3 KYC’. Such deactivated DIN cannot be surrendered.

 

4.       Who can apply for surrender of DIN?

 

Surrender of DIN can be applied by the following individuals (DIN Holders):

 

·         Individual who is having multiple DINs

·         Individual who obtained DIN in a wrongful manner or by fraudulent means

·         In case of Death of the concerned individual

·         Individual who is declared as a person of unsound mind by a competent court

·         Individual who has been adjudicated as insolvent

·         Individual who is/was not associated with any company/LLP

 

5.       How to surrender DIN?

 

Application for surrender of DIN can be filed for any reason such as when DIN is unused and not intended for future reference also or multiple DINs are allotted to same person or DIN holder is no more or has become of unsound mind or insolvent etc.

 

The application for surrender of DIN shall be made in e-Form DIR-5 by stating the reasons for surrendering the DIN.The DIN holder has to specify whether he is surrendering his DIN or going to retain any one of his DIN. Retaining DIN will take place only when he acquired 2 or more DINs by mistake and wants to retain any one DIN. Surrender of DIN will occur in case of death of the DIN holder or he has been adjudicated as insolvent or in such other cases.

 

If the individual is going to retain any DIN, then he can retain the oldest DIN only. He has to surrender all the DIN’s obtained later. i.e., he has to surrender all his newly obtained DINs.The application is to be filed along with an affidavit by the DIN Holder requesting the Ministry of Corporate Affairs (MCA) to deactivate his DIN.The application has to be certified by a Practicing Professional (CA/CMA/CS).This application for surrender of DIN will further be processed by the authorities.After verification of the particulars of the application, Ministry of Corporate Affairs may approve the Form DIR-5 by deactivating such DIN.

 

6.       What are the practical things to be kept in mind before filing application for surrender of DIN?

 

Before filing application for surrender of DIN, ensure that the status of the DIN is active. If KYC relating to the DIN is not yet filed, then first file the KYC relating to the DIN and then file the application for surrender of DIN.

 

In case any individual is having multiple DINs and is going to retain any one DIN, then make sure that the particulars relating to the retained DIN are true and correct. If any of the details provided in the retained DIN like Name, Date of Birth, Address, etc., are not correct, then make steps to correct the same by filing the relevant form like Form DIR-6 before proceeding to file application for surrender of DIN.

 

7.       Whether DIN will be surrendered by person other than the DIN Holder?

 

Yes, DIN can be surrendered by person other than the DIN Holder in the following scenarios:

 

1.       In case of death of the DIN Holder

2.       If the DIN Holder is declared as person of unsound mind by a competent court

3.       If the DIN Holder has been adjudicated as insolvent

 

In the above mentioned cases, the DIN can be surrendered by any person other than the Din Holder and the person who is making the application has to disclose his name, his relationship with DIN Holder and his PAN.

 

8.       What will happen to the existing Directorship’s of the individual under his New DINpost surrender the same?

 

In this scenario, all his existing Directorship in New DIN will be merged with the Oldest DIN post getting the approval from Ministry of Corporate Affairs (MCA). i.e., all his existing directorship in surrendered DIN will come under the retained DIN and the surrendered DIN will not be valid in any case.

 

9.       What are the documents required from the DIN Holder to surrender his DIN?

 

·         Passport size photograph of the DIN Holder is to be attached in the application to verify the identity of the person.

·         Proof of Identity of the applicant

·         Proof of address of the applicant

·         Copy of death certificate, in case death of the DIN Holder

·         Copy of court order, in case the DIN Holder is declared as insolvent/unsound mind.

·         Affidavit by the DIN Holder including a declaration by the applicant requesting the authorities to update all his associated CIN/LLPIN with the retained DIN.

 

10.   What is the consequence of holding two DINs?

 

As per Section 159 of the Companies Act, 2013, such DIN holder shall be punishable with imprisonment for a term which may extend to 6 months or with fine which may extend to 
Rs. 50,000 and where the contravention is a continuing one, with a further fine which may extend to Rs. 500 for every day after the first during which the contravention continues.

 

CS Mohankumar