The Ministry of Corporate Affairs (MCA) has made it mandatory for all private limited companies to update the Director Identification Number (DIN) details of their directors on an annual basis, as part of a new compliance requirement aimed at strengthening the corporate governance framework. Effective from June 1, 2025, the updated provision requires companies to ensure that each director files the DIR-3 KYC form every year, failing which the DIN will be marked as “deactivated due to non-filing.”

The directive applies to both Indian and foreign directors and mandates that companies verify DIN status before proceeding with any board actions, filings, or regulatory submissions involving those directors. The MCA has clarified that the DIN update process must be completed by September 30 each year, and any delay will attract penalties under Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014. Directors who have already filed once must file a web-based DIR-3 KYC (Web) form, while new directors must submit a full KYC with authentication of mobile number and email ID.

Experts see this move as a preventive step against identity misuse, inactive directorships, and shell company operations. Companies are advised to maintain a compliance calendar and integrate DIN verification into their annual secretarial audit checklist. The MCA has also stated that companies with deactivated DINs will be restricted from filing essential forms like AOC-4 and MGT-7, potentially impacting their statutory standing and leading to further legal consequences.