Is DIN (Director Identification Number) required for your Business?
Director Identification Number is a unique number assigned to the Director of a company by the Ministry of Corporate Affairs or the Central Government – Office of Regional Directors (Northern Region). It was implemented after the inclusion of Section 266A and 266G of the Companies Amendment Act, 2006. It is essential that all existing as well as well as prospective Directors apply for DIN. Moreover, a DIN holder is required to inform the authorities regarding any change in the details submitted.
Why is it required?
DIN essentially forms a database wherein the details of the Company Director’s details are stored. The reason behind this is to avoid swindling, as sometimes, after raising funds, both the Company and the Director are out of the picture with no scope of tracing them. Apart from assigning legal responsibility, it also keeps a track of the Director’s involvement in all the companies he has worked till date. Therefore, it is mandatory to acquire DIN before assigning an individual as a Director of a Company.
What are the documents required?
There are slight changes for Indian citizens and foreign national in terms of the documents required. One must also make sure that all the documents are self-attested. Following are the list of the requisite documents:
- Identity Proof, i.e. Pan Card Copy (Passport in case of a foreign national)
- Address Proof, i.e., Passport/Voter Id/ Ration Card/ Driver’s License/ Utility Bills/Aadhar Card (the address proof should not be more than a year old in case of a foreign national.)
- Latest Passport Size Photograph
- Occupation details
- Contact number and email id
- Educational qualification
Generally, most applications for DIN are accepted. However, sometimes, the DIN application can be rejected for various reasons. These may include:
- Incomplete forms
- Invalid documents
- Documents that are not attested
- Prefix and abbreviations have been used instead of the name
- Fee has not been processed
To obtain a Directors Identification Number or to know more about the same visit www.startupchoice.com or drop us a mail at firstname.lastname@example.org.