How to Apply Din before Incorporation of CompanyA. GENERAL PROVISION:
I. Section 153:
Every person who wishes to be appointed as a director of a company must apply to the Central Government for a Director Identification Number in the form and manner prescribed, along with the payments required.
II. Rule 9(1):
Every applicant who wishes to be appointed as a director of an existing company must submit an electronic application in Form DIR-3 to the central government for the issuance of a Director Identification Number (DIN) and payment of the fees set forth in the Companies (Registration Offices and Fees) Rules, 2014.
If proposed directors do not have an approved DIN, the details of up to three directors must be listed in Form No.INC-32 (spice), and DIN may be assigned to up to three proposed directors using Form INC-32 (spice).
B. WAYS TO OBTAIN DIN:
There are two ways to get DIN:
• In case individual incorporating New Company, he can apply DIN with Incorporation Form.
Condition: Only three DIN can get apply with Incorporation form.
• In case individual getting appointment in existing Company.
Condition: Such company passes a board resolution for application for DIN of such Individual and such Resolution needs to attach in e-form DIR-3.
C. ANALYSIS:
Situation 1: Incorporation with more than 3 Directors (not having DIN)
The particulars of maximum Three Directors shall be specified in Form No.INC-32 (spice) and DIN may be granted to Maximum Three Proposed Directors through Form INC-32, as per Section 153 read with Rule 9(1) Companies (Appointment and Qualification of Directors) Rules, 2014. (Spice).
It is clear from the legal provisions, that at time of incorporation maximum 3 Din can apply. If more than 3 person (not having DIN) want to incorporation Company in such case:
* First, they must incorporate the company with three directors, and
* Then, with the approval of the company's board of directors, appoint a fourth director.
Note: The only concern with the foregoing procedure is that the name of the fourth person shall not appear in the Articles of Association as the Company's first director.
Situation 2: Application for DIN without Board Resolution of any existing Company/ LLP
As per Section 153 read with Rule 9(1) The Companies (Appointment and Qualification of Directors) Rules of 2014 are a set of rules that govern the appointment and qualification of directors in companies. Every applicant who intends to be appointed as a director of an existing company must submit an electronic application in Form DIR-3 to the central government for the issuance of a Director Identification Number (DIN) and a copy of the board resolution proposing his appointment as a director of an existing company.
It is clear from the legal provisions, that DIN can not be allot a person without
• Copy of Board Resolution of his appointment as director in an existing Company.
• DSC of Director of Existing Company on form DIR-3
Conclusion:
After reading the provisions and situations indicated above, one can conclude that there are now only two options for obtaining a DIN. One contains an incorporation form, while the other has a copy of the existing company's board resolution. If a person does not follow any of the above requirements, he will be denied a DIN by the ministry.
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