Understanding DIR 5

Form DIR-5 Application for surrender of

Director Identification Number

As per recent update by Ministry of Corporate Affairs form RD-1 has been replaced by E-form DIR-5  w.e.f 21st June 2017 for the purpose of filing application for surrender of Director Identification Number i.e. DIN

Generally what is seen is that often person apply and obtain multiple DIN which is a contravention to the provision of companies act 2013 i.e section 155 companies act,2013 and contravention of the said provision results in imprisonment of such director for a term which may extend to six months or with fine which may extend to fifty thousand rupees and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day after the first during which the contravention continues. (Section 159)

Therefore, in order to avoid compliance issues MCA offers individuals/directors who hold more than one DIN to surrender their unused/not intended for future reference/multiple obtained DIN by way of an application by filing an E-form DIR 5 along with the necessary documents required In pursuance to Section 153 read with rule 11(f) (Appointment and Qualification of Directors) Rules, 2014

Relevant Sections:

Ø  Section 153:

Every individual intending to be appointed as director of a company shall make an application for allotment of Director Identification Number to the Central Government in such form and manner and along with such fees as may be prescribed.

Ø  Rule 11(f):

(f) on an application made in Form DIR-5 by the DIN holder to surrender his or her DIN along with declaration that he has never been appointed as director in any company and the said DIN has never been used for filing of any document with any authority, the Central Government may deactivate such DIN:

Provided that before deactivation of any DIN in such case, the Central Government shall verify e-records.

Ø  Section 159 :

If any individual or director of a company, contravenes any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to fifty thousand rupees and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day after the first during which the contravention continues.

In order to file eForm DIR 5, we need the following documents/ information in eform DIR 5:-

ATTACHMENTS/ INFORMATION	INDIAN NATIONAL	FOREIGN NATIONAL
1.      Full Name of Applicant	√	√
2.      Director Identification Number (DIN) of Director	√	√
Reason of Surrendering DIN	√	√
Proof of Identity of applicant (Voters Identity Card/ Passport/ Driving License/ Aadhaar Card/ PAN Card ) Anyone	√	√
3.      Copy of Address Proof (passport, election (voter identity) card, and ration card, driving license, electricity bill, telephone bill or aadhaar card ) • In case of Indian applicant, documents should not be older than 2 months from the date of filing of the eForm. • In case of foreign applicant, address proof should not be older than 1 year from the date of filing of the eForm.	√	√
To be digitally signed by chartered 4.      accountant or company secretary or cost accountant in Practice	√	√

For more queries, pls contact us at csnehaseth.cp@gmail.com or call us at 9871903449