Procedure for Surrender of DIN (Director Identification Number)

Introduction

Director Identification Number (DIN) is provided for in Section 153 of Companies Act, 2013 (CA, 2013). Every person who intends to be appointed as a director of a company shall make an application for allotment of DIN to the Central Government (Ministry of Corporate Affairs). Section 154 provides that Central Government shall allot DIN within a period of one month from the receipt of application. Further, Section 155 prohibits a person to obtain more than one DIN. Section 155 requires that the director should inform the DIN to the company within 1 month. Further, per Section 157 the company has to inform the Registrar the DIN within 1 month.

Important Provisions to Consider

There can be multiple reasons for surrendering of DIN like-

1. Having multiple DINs.
2. DIN was obtained in a wrongful manner or by fraudulent means.
3. Concerned individual is declared as a person of unsound mind by a competent court.
4. Concerned individual has been adjudicated as insolvent.
5. Concerned individual is/was not associated with any company/LLP.
6. Death of the concerned individual.

In case application is being made for reason that the person has more than one DIN, then the earliest allotted DIN will be retained and on approval of surrender application, the system will substitute the DIN retained with substituted DINs will all company/LLPs with which it is associated.

Procedure for Surrendering the DIN

Step 1: Form and Documents Filing-

• The applicant willing to surrender the DIN has to download Form DIR-5 from the portal of the MCA website and fill the details
• The form shall be signed by the applicant using his or her own DSC and shall be verified digitally by a Chartered Accountant, Company Secretary, or a Cost Accountant in practice.
• Then file the Form DIR-5 electronically along with the requisite documents and fee of Rs. 1000/-
• This has to be in conformity with Section 153 read with rule 11(f) of the Companies (Appointment and Qualification of Directors) Rules, 2014

Step 2: Regional Director Approval-

• On successful submission of the Form DIR-5, a Service Request Number (SRN) would be generated. It will be used for correspondence with the Ministry of Corporate Affairs (MCA). If approved, the status of the DIN will be changed to surrendered.
• On successful approval, the DIN would be de-activated. If the form is rejected than the status will change to approved DIN as earlier to filing of the form.

Documents Required

• One color passport size photo
• Proof of identity of the applicant- voter ID, passport, driving license, PAN card, Aadhar card, etc.
• Proof of residence of applicant- electricity bill, telephone bill, ration card, etc.
• Copy of court order declaring DIN holder as insolvent/unsound mind, if any.
• Copy of death certificate, if any.
• If application is made for reasons that he is in possession of multiple DINs then an affidavit cum declaration stating that the retained DIN will replace the surrendered DIN.

Conclusion

As holding more than one DIN is statutorily not allowed, this procedure is handy in surrendering the extra DIN. Also, in cases of death or fraudulent acquisition of DIN, the process can be used to surrender the DIN. In case of further query or assistance, feel free to contact the undersigned.