As the financial year progresses, September 30, 2024, marks two significant compliance deadlines for businesses and directors across India.
MCA Director Identification Number (DIN) KYC Filing Deadline:
Directors holding a Director Identification Number (DIN) must complete their annual KYC process by today. As per Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, individuals who hold a DIN as of March 31 of a financial year must file their KYC through Form DIR-3 KYC or DIR-3 KYC Web by September 30 of the following financial year.
Failure to meet this deadline will result in deactivation of the DIN, labeled as “Deactivated due to non-filing of DIR-3 KYC,” which effectively bars the individual from acting as a director. Reactivation of the DIN requires the filing of the necessary KYC forms along with a penalty fee of ₹5000. Directors are reminded to file on time to avoid disruptions in their ability to manage corporate responsibilities.
Dematerialization of Shares:
September 30, 2024, also marks the deadline for the dematerialization of shares for most private companies in India, with small companies exempted. Dematerialization, which involves converting physical share certificates into electronic form, is a mandatory requirement for compliance with the Companies Act.
Are You Ready for Invoice Management 2.0? Join our live webinar now
Small companies, defined as those with a paid-up capital of less than ₹4 crore and a turnover under ₹40 crore, are excluded from this mandate. However, holding companies and subsidiaries do not qualify for this exemption, even if they meet the financial criteria. Furthermore, companies that ceased to qualify as small companies after March 31, 2023, have an 18-month compliance period.
In a recent development, the Ministry of Corporate Affairs extended the deadline for producer companies, pushing their dematerialization deadline to March 2028, granting them a substantial extension.
These compliance measures are crucial to ensuring transparency and regulatory adherence across India’s corporate landscape. Directors and companies are advised to act promptly to avoid penalties and disruptions to their operations.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
