Surrender of Din – Reasons and Procedure

Surrender of Din – Reasons and Procedure

Director numbers (DIN) are often relinquished because of completely different reasons, and also the DIN may also be relinquished voluntarily for the needs of cancellation or deactivation on bound conditions. 

Therefore, what are the explanations for the surrender of DIN, or once will it be relinquished? During this article, we tend to answer such queries. However, before that, let’s have a quick understanding of DIN.

What is a Director Identification Number?

The DIN is the Director number assigned to a private by the Central Government World Health Organization that intends to appoint a Director within the Company or as a Partner in an Associate LLP registered in an Asian nation. 

The appliance for allotment of DIN shall be created in type DIR-3/Spice+ at the side of the needed fees and documents.

The same DIN assigned to the director shall not be assigned to the other person, and such a DIN is valid for life. 

It's a novel 8-digit variety written beneath the signature of the involved director in returns, applications, forms, etc. 

Any modification in details mentioned in type DIR-3 or Spice+ shall be intimated through type DIR-6 to the involved authority at the time of adjuvant documents.

Any individual shall not apply for associate other| for an additional |for one more DIN once they already possess a similar; otherwise, it shall be thought of as non-compliance of Section one hundred fifty-five, and such director or the corporate shall be at risk of imprisonment or fine.

What is the utilization of a Director Identification Number?

Director numbers are often used to file returns, applications, or any other quiet data concerning the corporation before the Ministry of Company Affairs. 

The director should meet the essential demand of the annual KYC between the maturity date of every twelve months.

Reasons for the Surrender of DIN 

Multiple DIN—As per Section 153 of the Business Act, 2013, if any director holds over one DIN, 

then he ought to build an associate application to the Regional Director in type DIR-5 at the side of a notarized legal document stating that such DIN has never been utilized in any document needed to be submitted to a mythical creature. 

Also, an associated application for change of integrity shall be filed in type GNL-1.

If a director has obtained a DIN by furnishing false data or in a very wrongful manner, then the DIN needs to be relinquished by such a person/director. 

Restrictive authorities shall deactivate such a DIN once they supply show cause notice to the director.

When a director is declared as someone of unsound mind—As per Section 153 of the Business Act, 2013, if the competent court has declared any individual as of unsound mind, 

then DIN needs to be relinquished by filing type DIR-5 at the side of the order of the court as an associate attachment.

When the Director is adjudicated as associate insolvent- If the DIN holder is adjudged as an associate insolvent, then he shall surrender his DIN by filing type DIR-5 at the side of the order of the court.

Death of the Director- Just in case of the director's death, his relative e shall file type DIR-5 and attach a death certificate to that.

DIN Surrender Options

how to surrender din

There are two methods by which a director can resign their DIN: on the authority of the Central Government or voluntarily by the DIN holder.

At the direction of the Central Government: The Central Government may require the Director to relinquish his DIN in certain circumstances, such as:

If the director has more than one DIN,

If the director got the DIN through deception or deceit,

Following the death of the director,

If the director has been declared insolvent,

If it is discovered that the Director is an associate insolvent,

DIN holder's voluntary participation- A DIN holder must resign their DIN on their initiative if the director has not been appointed in any company or body corporate while in possession of the DIN and such DIN has not been used in any document used in communication with regulators. In such instances, the director will willingly renounce his DIN.

DIN surrender procedure

The process of returning a DIN

The method for yielding DIN square measure is as follows:

Login to the MCA website and apply for DIN surrender in form DIR-5, along with din surrender fees of Rs 1000/- in fees and attachments.

The following information is required for DIR-5 submission:

Individual DIN number to be assigned

The number of DINs issued

DIN is still in use.

The reason for this surrender:

A self-attested copy of the individual's PAN.

An individual's self-attested copy of either an elector ID card, a passport, or a driver's license

Individual's permanent address and contact information

The involved person's digital signature

The skilled digital signature shall be an accountant in the application, an accountant in the application, or a company secretary throughout the entire time of the application.

The Central Government may deactivate such a DIN after verifying E-form DIR-5.

DIN Deactivation (Director Identification Number)

As stated at the outset of this book, the Ministry of Corporate Affairs will deactivate DIN for a variety of reasons. One of the most common causes for DIN deactivation is non-compliance with KYC (Know Your Customers) standards imposed by the Ministry of Corporate Affairs.

Because of every year, KYC rules every year, the MCA will classify the DIN as deactivated due to KYC.

Furthermore, the deactivation of a DIN might be wiped out if the corporation fails to file yearly financials and annual returns with the registrar of corporations for three years in a row.

In such cases, the corporation will be struck off by the registrar of corporations, and the administrators' DIN will remain dormant.

When the Central Government or the regional director of the registrar of corporations is satisfied with the verification of particulars and documented proof, the DIN will be cancelled or deactivated.

If the individual has never been appointed as a director in a corporation and the concerned DIN hasn't anybody for filing any documents with anybody, the DIN may be voluntarily given up for cancellation or deactivation.

In such a case, the DIN holder is required to submit an e-form DIR 5 together with a declaration confirming that, although holding the DIN, he has never been appointed as a director of any company and that the DIN being relinquished has not been used to get in touch with any regulatory body. The deactivation of DIN will occur once the verification has been completed by MCA personnel.

The concerned DIN holder may choose to voluntarily surrender their DIN rather than wait until the Central Government issues an order before doing so. The process is easier than surrendering a DIN per a Central Government order and takes less time under this option. The director who returns the DIN should give specific justifications for doing so.

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Duplicate DINs or DINs obtained inadvertently.

If it is discovered that the same individual has received the DIN twice, the information for both numbers will be combined with the properly kept number.

A person who obtains a DIN under Section 154 of the Companies Act of 2013 is prohibited from applying for, obtaining, or having another DIN, according to Section 155 of the Companies Act of 2013. According to Section 159, anyone who violates the requirements of Sections 152, 155, or 156, whether an individual or a director of a corporation, faces a punishment of up to 50,000 rupees.

FAQs.

  • What is the DIN number?

The DIN is the Director number assigned to a private by the Central Government World Health Organization that intends to appoint a Director within the Company or as a Partner in an Associate LLP registered in an Asian nation.

  • What is the utilization of a Director Identification Number?

Director numbers are often used to file returns, applications, or any other quiet data concerning the corporation before the Ministry of Company Affairs. The director should meet the essential demand of the annual KYC between the maturity date of every twelve months.

  • Why surrender if DIN?

Director numbers (DIN) are often relinquished because of completely different reasons, and also the DIN may also be relinquished voluntarily for the needs of cancellation or deactivation on bound conditions.

  • How to return DIN?

Login to the MCA website and apply for DIN surrender in form DIR-5 and din surrender fees of Rs 1000/- in fees.

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