What is Director Identification Number (DIN)?

Any individual wanting to become a director of a company in India has to obtain a DIN number, or the Director Identification Number. However, a certain enigma surrounds the DIN and individuals are usually oblivious to the meaning of DIN and the process to obtain a DIN.

Thus, we briefly explain the meaning of DIN, its usage, the features of DIN, the process of obtaining a DIN, as well as relevant forms for obtaining a DIN and common mistakes to avoid while submitting the application.

Meaning of Director Identification Number (DIN)

A Director Identification Number (DIN) is a unique 8-digit identification number allotted by the Central Government (Ministry of Corporate Affairs) to directors of Companies, or individuals wanting to become a director in a company. 

It was introduced by insertion of Sections from 266A to 266G in the company law, the Companies (Amendment) Act, 2006 (It is the Companies Act, 1956; not to be confused with the Companies Act, 2013).

Since the DIN is allotted to an individual, a person can be a director in more than one company with only one DIN. The allotted DIN has a lifetime validity.

Where is DIN used?

The Director Identification Number is used for authentication purposes. The DIN is mentioned underneath the director’s signature wherever required. It is mostly used for official purposes, like submitting returns or company-related documents to the government

How to apply for a DIN number?

The process to apply for a DIN is simple and fully digital. However, it varies based upon whether the applicants are proposed first directors in new companies, or wish to become a director of an already existing company.

For first directors in a new company

Any person intending to become a first director in a new company must fill out the e-SPICe form provided on the MCA portal and submit it with address proof and identity proof enclosed. Once the application form is approved by the government, the concerned person is allotted a DIN number.

To become a director in an existing company

Any person intending to become a director in an existing company must fill out the DIR-3 form provided on the MCA portal and attach supporting documents- duly attested identity proof and residence proof (present address).

Digital Signature

The DIR-3 form has to be digitally signed by the concerned person and must be verified digitally by a Company Secretary who is employed with the company full-time, or the managing director, or the CEO/CFO of the company.

Filing Fee

The person then has to pay the DIN application fee to proceed further. It is essential to obtain login ID for form submission and fee payment by registering on the MCA-21 portal.

The directions on the MCA portal explicitly mention that the DIR-3 form would not be processed unless the DIN application fee is paid. The instructions also mention that only electronic payment is accepted for paying the fee.

Verification of information provided

Once the payment has been made, a director identification number (DIN) is approved by the central government.

However, in case the information submitted in the DIR-3 form is marked as a potential duplicate, a provisional DIN would be allotted to the person and the DIN application form would be transferred to the DIN Cell for back-office processing.

If the information is found to be genuine and not duplicate, the provisional DIN provided earlier would be deemed as the approved DIN and would be available for further use by the DIN holder.

Features of DIN

The following are the features of a DIN:

1. It is mandatory for each director of all the companies to obtain DIN.
2. Each director has a unique Director Identification Number.
3. It has a lifetime validity unless the DIN holder surrenders by filling out the DIR-5 form.
4. The DIN allotted is universal and the same DIN can be used by the directors in multiple companies.

DIN Form Types relevant to the Director Identification Number

To obtain or make changes in the DIN, the following types of forms are available :

SPICe Form or e-form SPICe: This is for first directors in a new company.

DIR-3 form: This is for persons wanting to become a director in an existing company.

DIR-5 form: This is for persons wanting to surrender the Director DIN. Once the DIN is surrendered, a person cannot be appointed as a director anymore in any company.

DIR-6 form: This is for changing details submitted by any existing director and must be certified by either a Chartered Accountant, Company Secretary, or a Cost Accountant in whole-time practice.

Cases in which a DIN application may get rejected

The DIN applications could be rejected by the Central government for various reasons, some of which include:

1. The identity proof was not submitted.
2. In the case of foreign nationals, a copy of the passport was not submitted.
3. A duplicate DIN application was submitted while one remained pending.
4. The proof enclosed was not attested.
5. The Digital Signature Certificate was missing or the signature was not appended as prescribed.
6. Supporting documents were invalid or not issued by the Central Government or any other Government Agency.

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