Analysis on Surrender of Director Identification Number [DIN] by CS Yash Pareek (ICSI Silver Medalist) www.csyashpareek.in

 

|| श्री गणेशाय नमः||

 

Analysis on Surrender

of

Director Identification Number [DIN]

 

Prepared by

 

TEAM YPA

CS Yash Pareek (ICSI Silver Medalist)

Valuable inputs by CS Neha Jain & CS Gajab Maheshwari (Practicing Company Secretaries)

 

 

Reach us at:

Address: T-3, 3rd Floor, 207, M.P Nagar, Zone-II, Bhopal-462011, M.P

Mobile No: 9111575222

Email id: pcsyashpareek@gmail.com

Website: www.csyashpareek.in

 

 

 

Surrender of Director Identification Number [DIN]

 

1.      Statutory Provisions:

 

·        Companies (Registration Offices and Fees) Rules, 2014.

 

·        Section 153 of the Companies Act, 2013.

 

·        Rule 11 of Companies (Appointment and Qualification of Directors) Rules, 2014.

 

 

2.      Jurisdiction Authority:

 

The Central Government or Regional Director (Northern Region), Delhi or any officer authorised by the Regional Director.

 

 

3.      DIN which can be surrendered?

 

·        Single DIN never used can be surrendered.

 

·        Single DIN ever used can’t be surrender (except in few cases such as death, etc mentioned in Rule 11).

 

4.      Can director have more than one DIN?

 

No, director cannot have multiple DIN. Every Director can have only one DIN throughout his lifetime. DIN can either be surrendered by director or ROC can De-Activate or cease DIN if opted through fraudulent practice.

 

5.      Need for Surrender of DIN:

 

Surrender of Director’s Identification Number becomes very important by those DIN holders who are neither Director in any Company nor Designated Partner in any LLP and also not intending to do so in near future.

 

6.      Application for Surrender of DIN:

 

For surrendering DIN, an application shall be made in Form DIR-5 by the DIN holder along with declaration that he has never been appointed as director in any company and the said DIN has never been used for filing of any document with any authority.

 

Therefore, one can opine that, if a person held directorship in any company during his life using such DIN, that DIN can’t be surrender by filing of E-form DIR-5.

 

 

7.      Reasons for Surrender of DIN:

Application for surrender of DIN in E-form DIR-5 can be filed with any following mentioned reason such as:

A.     Having Multiple DINs

 

The DIN is found to be duplicated in respect of the same person provided the data related to both the DIN shall be merged with the validly retained number.

 

B.     DIN was obtained in a wrongful manner or by fraudulent means

Provided that before cancellation or deactivation of DIN pursuant to clause (b), an opportunity of being heard shall be given to the concerned individual.

C.     Death of the concerned individual

 

D.     Concerned individual is declared as a person of unsound mind by a competent court

 

E.      Concerned individual has been adjudicated as insolvent

 

F.      Concerned individual is/was not associated with any company/LLP

 

8.      Suo Moto Cancellation

 

The Central Government or Regional Director (Northern Region), or any officer authorized by the Central Government or Regional Director (Northern Region) shall, deactivate the Director Identification Number (DIN), of an individual who does not intimate his particulars in e-form DIR-3-KYC  [or the web service DIR-3-KYC-WEB as the case may be] within stipulated time in accordance with rule 12A.

 

The de-activated DIN shall be re-activated only after e-form DIR-3-KYC [or the web service DIR-3-KYC-WEB as the case may be] is filed along with fee as prescribed under Companies (Registration Offices and Fees) Rules, 2014.]

 

9.      Documents Required for Surrender of DIN:

 

·        Proof of Identity of applicant (Voters Identity Card / Passport/ Driving License/PAN Card).

·        Proof of Residence of applicant (electricity bill, telephone bill shall be attached and should be in the name of applicant only).

·        In case of Indian applicant, documents should not be older than 2 months from the date of filing of the eForm.

·        In case of foreign applicant, address proof should not be older than 1 year from the date of filing of the eForm.

·        Affidavit including declaration that retained DIN will be updated with all associated CIN/LLPIN, if user wants to retain any DIN

·        Copy of court order declaring DIN holder as insolvent/unsound mind if the Concerned individual is declared as a person of unsound mind by a competent court or has been adjudicated as insolvent

·        Copy of death certificate on death of the concerned individual

·        In case of proofs which are in languages other than Hindi / English, the proofs should be translated in Hindi / English from professional translator carrying his details (name, signature, address) and seal. In the case of foreign nationals, translation done by the notary of home country is also acceptable.

 

Conclusion

Professionals and Director should ensure and confirm that whether person for whom application for DIN is to be made whether already holds DIN or not to avoid duplicity of DIN. Further, application for surrender of DIN should be immediately made to Regional Director on occurrence of any events triggering the need for surrender of DIN to avoid the compounding of offence under the Companies Act, 2013.

Happy reading.

Regards,

CS Yash Pareek [ICSI Silver Medalist]

Company Secretary  I     Yash Pareek & Associates {www.csyashpareek.in/Professional}

Entrepreneur             I     Manomay Innovations Private Limited {www.manomay.co.in}

Social Worker       I     Rukmani Devi Pareek Charitable Foundation {www.csyashpareek.in/socialwork}

 

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Disclaimer: The entire contents of this document have been prepared based on relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness, and reliability of the information provided, I, CS Yash Pareek assume no responsibility, therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not professional advice and is subject to change without notice. I assume no responsibility for the consequences of the use of such information.