DIN Surrender
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DIN Surrender - Overview
DIN Surrender refers to a situation where a director is required to surrender their DIN to the Central Government, after which they will not be eligible to be appointed as a director until obtaining a fresh DIN. Under the Companies Act 2013, various circumstances are outlined when a director’s DIN may be surrendered, cancelled, or deactivated.
DIN is surrendered voluntarily by a director in two primary cases:
- The individual has never been appointed as a director in any company.
- The director has been appointed but has never used their DIN to file any documents.
Cancellation or deactivation of DIN occurs when a director fails to comply with the provisions of the Act within the specified time. The Central Government or an officer authorized by the Regional Director may initiate this action.
What is DIN?
Director Identification Number (DIN) is an 8-digit unique identification number allotted to individuals appointed as directors of companies under Section 153 of the Companies Act, 2013. It is used to maintain directors’ details in a central database by the Government and serves as a lifetime identification number for directors, applicable across all companies they are associated with.
Reasons for surrender or cancellation of DIN
Rule 11 of the Companies (Appointment and Qualification of Directors) Rules, 2014 specifies reasons for which the Central Government may cancel or request surrender of a DIN:
- Duplicate DIN.
- Obtained through wrongful or fraudulent means.
- Director declared of unsound mind by a competent court.
- Director adjudicated as insolvent.
- Death of the director.
Ways to surrender DIN
A director may surrender their DIN through:
- Central Government Order: Mandatory surrender as per specified reasons.
- Voluntary surrender: Director voluntarily surrenders DIN if never appointed as a director or if DIN has not been used for document filings.
Documents to be attached with Form DIR-5 include:
- Self-attested copy of Voter ID Card, Passport, Driving License, or UIN.
- Proof of residence.
- Court order in case of insolvency or unsound mind.
- Copy of death certificate (if applicable).
To surrender DIN, a director must electronically file Form DIR-5 with the Central Government, accompanied by a declaration stating the reasons for surrender:
- Log in to the MCA website and download Form DIR-5.
- Complete the form with required details including DIN, reasons for surrender, PAN, residential address, and personal details.
- Include digital signature and professional attestation by a Chartered Accountant, Cost Accountant, or Company Secretary in practice.
- Pay prescribed fees and attach necessary documents, including proof of identity, residence, and relevant court orders if applicable.
- Upon successful verification by the Central Government, the DIN may be deactivated.
FAQs
No, Section 155 of the Companies Act, 2013 prohibits an individual from obtaining more than one DIN. Contravention of this provision may result in penalties under Section 159 of the Act.
No, once an individual is appointed as a director in a company, they cannot voluntarily relinquish their DIN. The provision for voluntary surrender of DIN applies only if the individual has never been appointed as a director.
A director must file an electronic application to TrueConnect under Form DIR-5 along with a fee of Rs. 1,000.
Section 155 of the Companies Act, 2013 prohibits individuals from holding multiple DINs. Therefore, if a director has obtained multiple DINs fraudulently, they are required to surrender the DIN obtained later. They may retain the first DIN and surrender any subsequently obtained DINs.
