What is Director Identification Number (DIN)?

What is Director Identification Number (DIN)?
  • Reading time:5 mins read
  • Post last modified:December 13, 2020
  • Post category:Corporate Law

DIN is mandatory for all directors who hold the office of the director in any national, international, or multi-national company located in India. 

Director Identification Number (DIN) is a unique identification number for an existing director or a person intending to become the director of a company. Every Individual must have DIN allotted at time of company registration

What is DIN?

DIN is eight digits unique identification number allotted to existing or newly appointed directors of a company by the central government of India. Once issued DIN comes with a validity of lifetime and need not be renewed. User may update details as and when applicable. A director can hold one DIN irrespective of the number of companies he is a director in.

Can Anyone hold Multiple DIN?

DIN is mandatory for all directors who hold the office of the director in any national, international, or multi-national company located in India. 

A Director shall be in possession of only 1 DIN similar to PAN of any individual. Even if he/she is a director in more than one company, he/she shall have only 1 DIN. If in situations, he leaves a company and joins another company as a director, the same DIN should be submitted to the other company. If a director uses more than one DIN, it is a prima facie evidence of the violation of the law.

Penalty: If any individual or director of a Company, contravenes any of the provisions, such individual or director of the Company shall be punishable with imprisonment for a tem which may extend to Six month or with fine which may extend to Rs. 50,000/- and where the contravention is a continuing one, with a further fine which may extend to Rs. 500/- for every day after the first during which the contravention.

Grounds for Surrender of DIN:

The Central government may cancel the DIN due to the following reasons:

  • If a duplicate DIN has been issued to the director.
  • DIN was obtained by fraudulent means.
  • On the death of the concerned person.
  • The person has been declared unsound mind by the court.
  • The person has been adjudicated as insolvent.

Frequently Asked Questions – Surrender of DIN

Whether it is allowed to have more than one DIN by an individual?

As per Section 155: No individual, who has already been allotted a Director Identification Number under section 154, shall apply for, obtain or possess another Director Identification Number.

However, one can opine that if a person has applied or got second DIN then it shall be considered as non compliance of Section 155

What shall be penalty on individual if a person having two DIN?

As per 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.

However, one can opine that it is default on the part of individual and such individual shall be punishable with file as mentioned above.

If a person having two DIN, then whether such person can surrender DIN?

As per Rule 11 of The Companies (Appointment and qualification of Directors) Rules, 2014 “The Central Government or Regional Director (Northern Region), Noida or any officer authorised by the Regional Director may, upon being satisfied on verification of particulars or documentary proof attached with the application received along with fee as specified in Companies (Registration Offices and Fees) Rules, 2014 from any person, cancel or deactivate the DIN”.

However, one can opine that Rule 11 allowed an individual to surrender of DIN if having more than 2 DIN.

In case of 2 DIN, First DIN shall be surrender or Second DIN shall be Surrender?

In Another Word First Din obtained in 2006 and second DIN obtained in 2010, and then which DIN no. can be surrender.

As per provisions of Companies act read with relevant rules and Updation on the MCA website “ in respect of an individual who is in possession of Duplicate/Multiple DINs, he can retain the Oldest DIN only. DINs obtained later have to be surrendered.”

However, one can opine that DIN taken on later on (means second DIN) shall be surrender by individual. Surrender of First DIN is not at all allowed.

If a person having 2 DIN. Such person having directorships by second DIN, but no directorship on first DIN. Then whether he can surrender second DIN. If yes, what shall be status of Directorship?

As per Companies Act, 2013 and from above mentioned question it is clear that, second DIN can’t be retain by the individual in any of situations.

Therefore, Individual has to surrender the Second DIN. But what shall be status of directorships?

As per Act, in above mentioned situation following shall be done:
1. Individual has to surrender Second DIN Only
2. RD shall migrate directorship of Second DIN on First DIN.
3. After migration second DIN shall be surrender

Note: This Post was last updated on December 13, 2020

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Sunita

Founder & Director | COO & CHRO at eTaxFinance | Content Writer at eTaxFinance Blog | Department Head for Intellectual Property & Startup Team | Head-Corporate Strategy and Planning