What to Do if Your DIN (Director Identification Number) is Deactivated?

A Director Identification Number is an eight-digit unique identification number allotted by the Ministry of Corporate Affairs (MCA) to anyone intending to become a director in an Indian company. Similar to a PAN for the purposes of tax, DIN is considered a means of legal identification, a permanent identification for the directors to be able to serve on a company’s board.

DINs can become deactivated by the MCA for non-compliance with several reasons. Whatever the reason is for deactivation, it can lead to serious issues, as you will not be able to file any type of company form, authorise any compliance documents, nor will you be able to continue as a director until the DIN has been activated.

In this blog, we will explain the reasons for the deactivation of your DIN, the consequences if it is deactivated, and a step-by-step process on how to reactivate the DIN.

Why Can a DIN be Deactivated?

The MCA deactivates a DIN under certain circumstances, mainly related to non-compliance or incorrect details. The common reasons are:

1. Non-filing of DIR-3 KYC

• Every director must file Form DIR-3 KYC annually to update their contact details.
• If not filed within the deadline (usually 30th September), the DIN is marked as deactivated with reason “Non-filing of DIR-3 KYC”.

2. Disqualification of Director

• Under Section 164(2) of the Companies Act, if a company fails to file annual returns or financial statements for three consecutive years, its directors are disqualified.
• In such cases, the DIN remains valid but is flagged with disqualification.

3. Incorrect or Duplicate Details

• DIN may be deactivated if issued based on fraudulent or incorrect information.
• Duplicate DINs (one person holding more than one DIN) can also be deactivated.

4. On Director’s Death or Resignation

In rare cases, DIN may be deactivated upon death or based on a court/tribunal order.

Effects of a Deactivated DIN

If you have a deactivated DIN, you cannot:

• File any ROC (Registrar of Companies) forms where authentication of your DIN is required.
• Sign any board resolutions or compliance documentation.
• Act as a company director in active service.
• Get appointed or reappointed as a director.

This means the company’s operations can be impacted as a whole if one or more directors have inactive DINs.

Steps to Reactivate DIN (Director Identification Number)

The steps to reactivate depend on the reason for deactivation. So let’s look at each case individually:

1. If your DIN is Deactivated on Account of Non-Filing of DIR-3 KYC

This is the most common reason for a DIN being deactivated. To reactivate DIN:

• Step 1: Download and fill out the DIN-3 KYC format (which is available on MCA website)
• Step 2: Fill PAN, Aadhaar, email, mobile, and OTT verification details
• Step 3: Get Form DIR-3 KYC signed digitally by a practising CA/CS/CMA
• Step 4: Upload the form DIR-3 KYC on the MCA portal
• Step 5: Pay late fees of ₹5,000 to the extent of part filing after the due date.

Your DIN shall be reactivated once it is duly processed.

2. If your DIN is Deactivated Because of Duplicate or Incorrect Information

• File Form DIR-5 for surrender of duplicate DINs.
• The MCA will check all DINs and select the valid DIN. All other duplicate DINs will be cancelled.
• For incorrect information, you may be required to submit supporting documentation (such as updated PAN/Aadhaar).

3. If your DIN is Deactivated Because of Disqualification

• In this case, the DIN is not cancelled; instead, the DIN is flagged because it belongs to a disqualified director.
• The disqualification is a 5-year period (Section 164(2))
• The options here are to:
• Wait for the disqualification period to lapse, or
• Go to the High Court for a remedy (if disqualified).

4. If your DIN was Deactivated Because of Other Reasons (Death/Court Order)

• If death, DIN cannot be reactivated.
• If other orders, the reactivation can happen under the order of the court or tribunal only.

Documents Required for DIN Reactivation

• PAN and Aadhaar copy (self-attested)
• Passport copy (for foreigners)
• Proof of present address
• Email ID and mobile number (for OTP verification)
• Digital Signature Certificate (DSC)
• Certification from a practising professional (CA/CS/CMA)

Preventive Measures To Avoid DIN Deactivation

1. File DIR-3 KYC once a year, before September 30 (for you or your Private Limited Company, if you are a Director)
2. Update PAN, Aadhaar and contact particulars with MCA records to avoid deactivation
3. Ensure your company’s compliance with the statutory filings with ROC prior to disqualification
4. Don’t apply for multiple DINs; one person can have only one DIN.

Conclusion

A deactivated DIN can interfere with your duties as a director of a company and inhibit important compliance filings. In most situations where DINs are deactivated, particularly for failure to file DIR-3 KYC, the issue can easily be rectified by filing the form with the late filing fee of ₹5,000. However, if your DIN is deactivated for being disqualified or having duplicate DINs, the reinstatement could take longer and involve lawyers. The timely filing of annual director KYC as a director and keeping the records current is the best way to maintain compliance.

It is important for both directors and companies to ensure that DINs are active at all times for the smooth running of operations and to comply with the Companies Act.

References

The Companies Act, 2013

https://www.mca.gov.in/

https://www.icsi.edu/home/