The Director Identification Number (DIN) is a unique number allocated to a person who has been appointed as a director of a company under the Companies Act, 2013. The Ministry of Corporate Affairs (MCA) has introduced this scheme with an aim of promoting greater transparency and accountability in corporate management by having a centralised repository of directors of all Indian corporations. A DIN is a lifelong number one need if they wish to be a director of any Indian company. It ensures proper documentation of a director’s activities in different firms to avoid the utilisation of fake or forged identities. In order to get a DIN, one has to apply online through the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form at the time of incorporation of the company or through Form DIR-3 for appointments in already incorporated companies. The MCA scrutinises the application and requires verification of the identity and address of the applicant. The DIN is also utilised for the submission of various corporate documents such as annual returns, board resolutions, and regulatory filings. The application of the DIN has significantly improved corporate governance through the utilisation of a common and traceable procedure for the identification and tracking of those who serve as directors for Indian companies.
What is Surrender of DIN?
The resignation of a Director Identification Number (DIN) refers to the voluntary or compulsory cancellation of an individual’s DIN, which is provided by the Ministry of Corporate Affairs. This is normally done when the DIN is not required or has been inadvertently allocated, for instance, in the case of duplicate DINs allocated to an individual, the death of the director, or disqualification to be a director. Relinquishment procedure involves filing Form DIR-5 with any supporting documentation, if so required, with a declaration providing the reasons for relinquishment. The application shall be digitally signed and filed using the MCA portal.
Once successful authentication is achieved, the Central Government will cancel or shut down the DIN, thereby preventing the individual from serving as a director with the provided number. Returning unused or duplicate DINs is required to keep company law requirements and ensure that records in the MCA database are accurate and intact.
Grounds for Surrender of DIN
As per the Companies Act, 2013 and accompanying regulations, a person can surrender their Director Identification Number (DIN) under certain conditions. The Ministry of Corporate Affairs (MCA) accepts surrender of DIN through Form DIR-5, but only for legitimate and approved reasons. The DIN surrender has to be backed by valid documentation and requires MCA approval. The surrendered DIN gets deactivated, and the individual cannot utilise the same for the purpose of directorship in any Indian company.
- Multiple DINs: In case an individual has been issued more than one DIN inadvertently, they are obligated to keep one valid DIN and return the duplicate(s). It is a violation of the law to have more than one DIN.
- Unused DIN: If a DIN was never utilised in any company filing or appointment as a director, the person can return it voluntarily.
- Death of the Holder of the DIN: Where there is the death of an individual who owns a DIN, the legal heir or representative can surrender the DIN accompanied by such supporting documents as a death certificate.
- Declared to be Insolvent or of Unsane Mind: Where a DIN holder has been declared to be insolvent or of unsound mind by a competent court, the DIN can be surrendered upon such a declaration.
- Disqualification under the Law: Those disqualified under Section 164 of the Companies Act, 2013, can resign their DIN if they are permanently disbarred from future appointments.
- Duplicate or False Identity: If the DIN has been acquired by furnishing false or inaccurate information or on the basis of forged documents, the DIN has to be resigned on discovery.
- Change in Citizenship or Residence: In the situation where the person has stopped being an Indian citizen or resident and no longer wishes to be a director in India, the DIN can be relinquished.
Form DIR-5 – Surrender of DIN
DIR-5 is a compulsory form set by the Ministry of Corporate Affairs (MCA) under the Companies Act of 2013 for the voluntary surrender or cancellation of a Director Identification Number (DIN). This type is usable when a person wants to give up their DIN voluntarily or is forced to under certain situations like having more than one DIN, failure to use the DIN, or in circumstances of the director’s death, disqualification, or incorrect/ fraudulent issuance. The surrender application should be filed electronically via the MCA website, along with supporting documents required such as identity proof, affidavits, and a board resolution if applicable. The form needs to be signed digitally by the applicant or their authorised signatory. Once processed and approved by the Central Government, the DIN will be deactivated or closed, thus disabling the individual from being a director under that DIN.
Documentation For DIR-5
On filing Form DIR-5 for surrender or cancellation of a Director Identification Number (DIN), the applicant has to provide a set of supporting documents. They help the Ministry of Corporate Affairs (MCA) in establishing the identity of the applicant and the genuineness of the surrender application. They should be in English or duly translated from another language. Furthermore, the form has to be digitally signed by the applicant or their representative. Correct documentation assures that the DIN request for surrender is processed and accepted correctly.
1. Self-attested identity proof:
- PAN Card, in case of Indian nationals
- A passport, for foreign citizens
2. Self-attested residence proof can include Aadhaar cards, passports, voter ID, utility bills not older than 2 months, and bank statements.
3. Declaration of the Applicant: The formal declaration is to be supplied, explaining the cause for relinquishing the DIN (e.g., duplicate, never utilised, deceased) and a verification that no utilisation of the DIN has ever been made for company filings (if the situation arises).
4. Board Resolution (if a company submitting a surrender for a deceased or disqualified director): A copy of the company’s board resolution needs to be submitted.
5. If the director dies, the surrender requires a certified copy of the death certificate.
6. Court Order or Declaration (if necessary): Needed for insolvency, mental incapacity, or disqualification by law.
7. Affidavit/Undertaking (in some instances): Needed for more than one DIN or identification discrepancy.
How to File Form DIR-5 Online?
DIR-5 is the official method of surrendering or cancellation of a Director Identification Number (DIN) under the Companies Act of 2013. The form should be filed online through the Ministry of Corporate Affairs (MCA) portal. This is a necessary step for maintaining compliance with business regulations and having updated and accurate DIN records.
1. Determine the cause of surrender. Before going ahead, determine the valid reasons for relinquishing the DIN, which can encompass having more than one DIN, failure to use the DIN in any filing, death of the director, disqualification, or obtaining the DIN by fraudulent activities or mistakes.
2. Gather documents required. Prepare and self-attest the following documents:
- Proof of identification (PAN for Indians or a passport for foreign nationals).
- Evidence of residence (e.g., utility bill, Aadhaar card).
- A declaration stating the reason for surrender.
- If death, provide the death certificate and board resolution (if it is being filed by the company).
- Include an affidavit or court order, if applicable.
3. Access the MCA Portal. Go to the MCA’s website, www.mca.gov.in Click ‘MCA Services’ > “e-Filing” > ‘Download Company Forms’. Download the latest version of Form DIR-5.
4. Submit Form DIR-5. Fill the form with correct information:
- Surrender DIN
- Full name, father’s name, DOB, gender, and nationality
- PAN or passport number
- Permanent as well as present residential address
- Furnish a reason for surrender
- Append any supporting papers in PDF mode.
5. Affix the applicant’s Digital Signature Certificate (DSC). Where the filing is made on behalf of a deceased person, a representative or company official must submit their signature using their DSC.
6. Pre-Scrutiny and Upload. Validate the form using the ‘Check Form’ and ‘Pre-scrutiny’ features. Once validated, log in to the MCA portal. Go to ‘MCA Services’ > ‘Upload eForms’ to upload DIR-5 and submit as required.
7. Pay the filing fees. Currently, there is no government charge for filing DIR-5, but it is recommended to check the MCA website for any changes.
8. Acknowledgement is generated for further processing. When submitted, a Service Request Number (SRN) will be created. The SRN can be used to track the status of your application. The MCA will process the submission and, if appropriate, will deactivate or cancel the DIN.
Consequences Of Non-Compliance
Non-compliance with the filing of Form DIR-5, which is used for the surrender of a Director Identification Number (DIN), can attract various legal and regulatory consequences as provided under the Companies Act of 2013. Persons holding more than one DIN who fail to surrender the duplicates contravene Rule 11(f) of the Companies (Appointment and Qualification of Directors) Rules, 2014. Such non-compliance can attract deactivation of all DINs, disqualification from acting as a director, and a monetary penalty of up to Rs. 50,000, along with a daily charge of Rs. 500 for the period of default. If a DIN has been obtained by fraud and is not relinquished, the person can be charged with fraud. Furthermore, using an invalid DIN in business documents can cause delays, jeopardise compliance status, and damage the reputation of the director as well as the company in question.
Conclusion
Surrender of a Director Identification Number (DIN) is a key step in ensuring proper and legal records as per the Companies Act of 2013. Surrender of an unwanted DIN, whether because it is a duplicate, disqualified or non-use, ensures transparency and compliance with MCA norms.
The timely and accurate filing of Form DIR-5, along with all supporting documentation, helps to prevent businesses from facing legal problems and fines as well as helps maintain the reputation of corporate governance in India’s regulatory environment.
