Procedure for Cancellation or Surrender of Director’s Identification Number (DIN)

Khushboo Sharma

Khushboo Sharma

Published on: Feb 14, 2024

Darshi Dave

Updated on: Feb 14, 2024

★★★★★(12 Rating)

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Introduction:

Director Identification Number (DIN) refers to an identification number allotted by the Central Government to any individual, intending to be appointed as a director or to any existing director of a company, for the purposes of identification as a director of the company. Such DIN shall also include a Designated Partnership Identification Number (DPIN) issued under section 7 of the Limited Liability Partnership Act, 2008 and rules made thereunder.

DIN may be cancelled or deactivated under the following situations:

1. If user have multiple DIN
2. DIN has been obtained in a wrongful or fraudulent manner
3. Death of the concerned individual
4. If the concerned individual has been declared as a person of unsound mind by a competent Court
5. If the concerned individual has been adjudicated an insolvent
6. If the concerned individual has not intimated his/her particulars in e-form DIR-3 KYC or e-form DIR-3 WEB as the case may be, within stipulated time as per rule 12A.

Applicable Provisions:

1. Section 153 of the Companies Act, 2013
2. Rule 2, 11 of the Companies (Appointment and Qualification of Directors) Rules, 2014

Mandatory Requirements:

1. Application to the Central Government or Regional Director (Northern Region), Noida, or any officer authorized by the Regional Director for the cancellation of Director Identification Number (DIN).

Procedure:

Director Identification Number (DIN) can be surrendered:

1. Voluntarily by the DIN holder or
2. On the order of Central Government

1. Voluntarily by the DIN holder:
   • Application to the Central Government/Regional Director for Cancellation/Surrender of Director Identification Number (DIN):
     • DIN holder shall make an application in e-Form DIR-5 for surrendering his/her DIN together with a declaration that he/she has never been appointed as a director in any company and the said DIN has never been utilized for filing of any document with any authority
     • Such application shall be submitted along with the prescribed fees and the following documents:
       • Identity Proof (Voters Identity Card/ Passport/ Driving License/ Aadhaar Card/ PAN Card)
       • Residence Proof of the applicant (Passport, election (voter identity) card, ration card, driving license, electricity bill, telephone bill, or Aadhaar card in the name of the applicant which is not older than 2 months from the filing date of e-form in case of Indian nationals and not older than 1 year from the filing date of e-form in case of Foreign nationals)
       • Affidavit including a declaration that the retained DIN will be updated with all associated CIN/LLPIN (Mandatory if the user wants to retain any DIN of the said e-form under Retain DIN details option)
       • Copy of Court order declaring DIN holder being insolvent or of unsound mind (Mandatory in case reason for Concerned individual is declared as a person of unsound mind by a competent court or Concerned individual has been adjudicated as insolvent, is being selected in Reason for Surrender Option of the said e-form)
       • Copy of death certificate (Mandatory in case of reason 3 i.e., Death of the concerned individual, is being selected in field 3 of the said e-form)
       • Any other optional attachment (s) as may deem fit.
     • Such application shall be digitally signed by concerned individual and certify by practicing professional (CA/CS) in case of voluntary deactivation.
   *Note:
   1. In case of proofs that are in languages other than Hindi/English, the proofs should be translated into Hindi/English by a professional translator carrying his details (name, signature, address) and seal.
   2. In the case of foreign nationals, translation done by the notary of the home country is also acceptable.
   • Cancellation of Director Identification Number (DIN):
     The Central Government shall duly verify the said e-form DIR-5 and the documents furnished along with the application and upon satisfaction of the given circumstances, may cancel/deactivate the DIN allotted to the concerned individual.
2. On the order of Central Government:
   The Central Government may under the situations explained above, if feels justified and after giving an opportunity of being heard, pass an order for the surrender or cancellation of DIN of the concerned person.