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IF I AM NOT FILING THE DIRECTOR E- KYC WHAT ARE THE PENALTY?

IF I AM NOT FILLING THE DIRECTOR E- KYC WHAT ARE THE PENALTY?

INTRODUCTION

Directors E-KYC is an electronic know-your-customer (e-KYC) process that allows companies to verify the identity of their directors online. It is a faster, more convenient, and more secure way to complete the KYC process than traditional methods.

The features of Directors E-KYC include:

  1. Online verification of identity documents: Directors can verify their identity documents online, such as their passport or driving license.
  2. Biometric verification: Directors can verify their identity using biometrics, such as fingerprints or facial recognition.
  3. Video chat: Directors can verify their identity through a video chat with a qualified representative.
  4. Instant results: Directors will receive instant results after completing the KYC process.

If you do not file the Director e-KYC, your DIN (Director Identification Number) will be deactivated. You can reactivate your DIN by filing the eForm DIR-3 KYC after paying a late fee of Rs. 5,000.

  1. The DIN (Director Identification Number) will be deactivated.
  2. The director will not be able to perform any activities that require a DIN, such as signing documents, attending board meetings, or voting on resolutions.
  3. The director may be held liable for any financial losses incurred by the company due to their non-compliance.
  4. The director may be fined up to Rs. 5,000.

The due date for filing the Director e-KYC is 30th September of the financial year in which the DIN was allotted. For example, the due date for filing the Director e-KYC for the financial year 2023-2024 is 30th September 2024.

If the Director e-KYC is not filed by the due date, the DIN will be deactivated. The DIN can be reactivated by filing the eForm DIR-3 KYC with a late fee of Rs. 5,000. The late fee can be paid on or after 30th September of the financial year in which the eForm DIR-3 KYC is filed.

It is important to note that the penalty for not filing the Director e-KYC may be increased in the future. Therefore, it is advisable to file the eForm DIR-3 KYC on time to avoid any penalties.

The Ministry of Corporate Affairs (MCA) mandates that all directors of companies in India file their annual e-KYC (Know Your Customer) details by 30th April of each financial year. The penalty for not filing e-KYC on time is Rs. 5,000.

There are two types of directors e-KYC penalty:

  1. Penalty for late filing of e-KYC: If a director fails to file his/her e-KYC within the due date, he/she will be liable to pay a penalty of Rs. 5000.
  2. Penalty for filing incorrect or false information in e-KYC: If a director files incorrect or false information in his/her e-KYC, he/she will be liable to pay a penalty of Rs. 10000.

he penalty for late filing or filing incorrect or false information in e-KYC is imposed by the Ministry of Corporate Affairs (MCA). The penalty is payable to the MCA.

It is important for directors to file their e-KYC on time and to ensure that the information they provide is accurate. By doing so, they can avoid the penalties imposed by the MCA.

Here are some tips on how to protect yourself from the e-KYC penalty:

  1. File your e-KYC on time. The due date for filing e-KYC is 30th April of each financial year. If you miss the deadline, you will be liable to pay a penalty of Rs. 5,000.
  2. Keep your contact details updated. Your e-KYC form must contain your current mobile number and email address. If these details change, make sure to update them in your e-KYC form.
  3. Use a professional service provider. There are several professional service providers that can help you with e-KYC filing. These providers can help you collect the required documents, fill out the form correctly, and submit it to the MCA on time.