DIN Reactivation Process for Deactivated and Disqualified DINs

Governing Act and Rules

The reactivation of DINs is governed by the Companies Act, 2013 and the Companies (Registration of Directors) Rules, 2014. Key sections and rules include:

• Section 164: Relates to disqualification of directors.
• Section 167: Addresses vacation of office by directors.
• Rule 11 of the Companies (Registration of Directors) Rules, 2014: Specifies the procedures for obtaining and reactivating DINs.

Eligibility for DIN Reactivation

Entities Eligible for DIN Reactivation

• Individuals: Any person holding a DIN that has been deactivated or disqualified.
• Companies: Companies wishing to reinstate their directors who have deactivated DINs.

Common Reasons for DIN Deactivation or Disqualification

• Non-filing of annual returns or financial statements.
• Non-compliance with provisions of the Companies Act.
• The individual has been disqualified due to specific provisions under the law.

Step-by-Step Process for Removal of a Director

• Step 1

  Identify the Reason for Deactivation/Disqualification

  Understand the reason behind the DIN deactivation to ensure the proper steps are taken for reactivation.

• Step 2

  File the Required Documents

  The applicant must file the Form DIR-3 (for new DIN application) or Form DIR-5 (for the deactivation request) along with necessary supporting documents.

• Step 3

  Pay the Required Fees

  Fees for DIN reactivation must be paid through the prescribed mode. The fee amount varies depending on the specific case and the duration of deactivation.

• Step 4

  Submit the Application

  Submit the completed form and supporting documents to the Registrar of Companies (ROC).

• Step 5

  Verification by ROC

  The ROC will review the submitted application and documents. If everything is in order, the DIN will be reactivated.

• Step 6

  Confirmation of Reactivation

  Once approved, the applicant will receive a confirmation notification regarding the reactivation of the DIN.

Timeline for DIN Reactivation

• The DIN reactivation process generally takes 7 to 30 working days to reflect after submitting the application, depending on the ROC’s processing time and the complexity of the case.
• The updated DIN status will be reflected in the Register of Directors maintained by the Ministry of Corporate Affairs (MCA).

Forms and Documentation

• Form DIR-3: Application for DIN issuance (for new applications).
• Form DIR-5: Application for DIN deactivation or reactivation.
• Supporting Documents:
  • Identity proof (PAN, Aadhar, passport).
  • Address proof.
  • Any other documents as required by the ROC based on the reason for deactivation.

Estimated Timeframe for DIN Reactivation

• Application Submission: Immediate upon filing.
• ROC Processing Time: 7 to 30 working days.
• Notification of Reactivation: Issued upon successful verification by the ROC.

Frequency of DIN Reactivation Requests

• There is no statutory limit on how many times a DIN can be reactivated; however, repeated deactivations may raise concerns with the ROC and require justification for reactivation.

Consequences of Non-compliance

• Legal Penalties: Non-compliance with filing requirements can lead to penalties imposed on the individual and the company.
• Inability to Serve as Director: A deactivated or disqualified DIN prevents an individual from being appointed or continuing as a director in any company.

Benefits of DIN Reactivation

• Restores Eligibility: Reactivating a DIN allows individuals to take on directorship roles and fulfill their responsibilities in corporate governance.
• Compliance with Law: Maintaining an active DIN is crucial for compliance with the Companies Act, ensuring good corporate governance.
• Avoids Legal Issues: Reactivation prevents potential legal penalties and restrictions on directorship.