The Ministry of Corporate Affairs (MCA) has simplified KYC compliance norms for directors and Limited Liability Partnership (LLP partners) under the Companies Act, 2013. As per the latest MCA circular, the earlier requirement of annual DIR-3 KYC filing has been replaced with a streamlined system.
“The Ministry of Corporate Affairs (MCA) has introduced significant changes to the DIR-3 KYC compliance framework with the objective of simplifying regulatory requirements and enhancing ease of compliance for Directors,” the ministry posted on X on Monday.
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KYC Timeline Changed:
Directors holding a Director Identification Number (DIN) as of March 31, 2025 will now be required to complete KYC formalities by June 30 once every three financial years instead of every year. The revised rules came into effect from March 31.
According to the new circular, any changes in mobile, email or residential address must be updated within 30 days with prescribed fees under applicable rules.
Pending Forms Cancelled:
The MCA has also cancelled all pending KYC forms filed under the old system. This means that the affected individuals will need to submit fresh filings. In order to further simplify compliance, the Ministry of Corporate Affairs has also replaced Form DIR-3-KYC and DIR-3-KYC-Web with a single unified form - Form DIR-3 KYC Web.
“The verification (through digital signature) by DIN holder/director and certification (through digital signature) by the professional during KYC filing process would be required only if the KYC Form is submitted for updation of mobile number or email address or residential addresses,” the ministry said in an earlier circular.
The new norms apply to directors across public and private companies, as well as designated partners in LLPs and are aimed at reducing compliance burden.
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To better explain the amended rules, the ministry also shared illustrative scenarios with different cases:
- If a Director Identification Number is allotted to a professional in FY 2025-26, the new DIR-3 KYC Web form must be filed first between April to June 2029 and then every third financial year after that.
- If a director has already filed DIR-3 KYC form for FY 2025-26, given that their DIN allotment date is on or before March 31, 2025, no filing is required for FY 2026-27 and FY 2027-28. For them, the next filing is due April–June 2028 unless any of their details change.
- If a DIN is allotted on Jan. 1, 2026 and the director updates their details in FY2027-28 by filing DIR-3 KYC Web, it does not affect the cycle. This means that the next DIR-3 KYC Web filing remains due April to June 2029.
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