DIR-3 KYC (Know Your Customer) is a mandatory compliance requirement for all directors of companies
incorporated in India, as mandated by the Ministry of Corporate Affairs (MCA). It aims to maintain an
updated repository of directors’ information to enhance transparency and corporate governance.
Directors are required to file DIR-3 KYC annually by providing personal details, including their Permanent
Account Number (PAN), Aadhaar Number, passport (if applicable), current address, and contact
information. The filing must be completed online through the MCA portal within the stipulated
timeframe to avoid penalties and ensure compliance with regulatory norms. This process helps verify
the identity and credentials of directors, strengthens corporate oversight, and ensures accurate public
records of company leadership in India.

The objective of DIR 3 KYC is to prevent identity theft, ensure that directors are aware of their responsibilities and obligations under the Companies Act, 2013, and maintain a transparent and updated record of all directors. By filing the DIR 3 KYC form, directors can confirm their identity and ensure compliance with the regulatory requirements, thereby avoiding any potential penalties or fines.

The DIR 3 KYC form needs to be filed annually by all directors, and any changes to their KYC details must be updated promptly. The MCA has made it mandatory for all companies to ensure that their directors comply with the DIR 3 KYC requirements, and non-compliance can result in penalties and fines. Therefore, it is essential for all directors to understand the importance of DIR 3 KYC and ensure timely compliance to avoid any regulatory issues.

In addition to ensuring compliance, the DIR 3 KYC also provides an opportunity for directors to review and update their personal and professional information, ensuring that their records are accurate and up-to-date. This can help prevent errors and inconsistencies in the future and ensure that directors are aware of their responsibilities and obligations.

Overall, the DIR 3 KYC is an essential compliance requirement for all directors of companies registered in India, and it plays a critical role in maintaining transparency and accountability in corporate governance. By understanding the importance of DIR 3 KYC and ensuring timely compliance, directors can avoid regulatory issues and maintain a positive reputation for their company.”