Form DIR-5 for Surrendering of DIN – Everything you need to know 

Introduction

Any individual who serves as a director or partner of a business or LLP (Limited Liability Partnership) that is registered in India must have a DIN, or Director Identification Number. Therefore, after acquiring a digital signature of the intended director or partner, DIN is obtained as part of the business registration or LLP incorporation process. Sometimes a DIN is obtained in error for a person who already has one. This article will assist you with the information on “What is DIN?”, “Why is there a need to surrender DIN?”, information that needs to be included in Form DIR-5, and Documents required for Form DIR-5 for Surrendering of DIN.

What is DIN?

A person who wants to become a director is permitted to receive one DIN according to the law because it is linked to their Permanent Account Number (PAN) or passport. A person who wants to become a director can become a director in many firms by getting a single DIN. Therefore, the concerned person may check the DIN database to see if he has ever received a DIN from the Central Government before receiving a DIN or at any moment while applying for allotment of a DIN.

In order to prevent the issue of one applicant receiving several DINs, the Central Government has also put in place a checking process wherein, prior to allotting any DIN, it also runs a check and validates the data given by the applicant through its database. It is preferable for a potential applicant to check the MCA portal to see if he has ever received a DIN as a precaution.

If the applicant’s record of any prior DIN is discovered, the present application will be rejected, and no new DIN will be issued. The applicant will become the centre of attention for the Central Government if records indicate that they own more than one DIN. The applicant would be required to pay a fine for breaking the law as well as forfeit all of his DINs, with the exception of one, and explain why he / she still has them.

Why is there a need to surrender DIN?

• DIN gained by fraud or in an improper manner

If a director received a DIN through the provision of false information or in an improper manner, the director must relinquish the DIN, or the regulatory authorities may deactivate the DIN after giving the director a show-cause notice.

• When a director is declared insolvent

If the director is declared insolvent, he must resign his DIN by submitting Form DIR-5 together with the court’s ruling.

• Multiple DIN (Director Identification Number)

In accordance with Section 153 of the Companies Act of 2013, if a Director has more than one DIN, he must submit a Form DIR-5 application to the Regional Director along with a notarized affidavit stating that the additional DIN has never been used in any kind of document that must be submitted to the ROC. Additionally, a compounding application must be submitted in Form GNL-1.

• When a director is deemed to be mentally incompetent

When a director is deemed to be mentally incompetent, pursuant to Section 153 of the Companies Act, 2013, if the court of competent jurisdiction issues such a declaration, the DIN must be relinquished by filing Form DIR-5 with the court’s order attached.

Documents required for filing Form DIR-5

The applicant must submit the following documents to Form DIR-5 in order to surrender their DIN.

• Identity Proof (Like Aadhar Card, PAN, Voting card, etc)
• Address Proof (Driving license, ration card, electricity bill or any other)
  • In the event of an Indian applicant, documentation shouldn’t be more than two months old as of the eForm submission date.
  • If a foreign applicant, the address evidence must be more than one year old as of the eForm submission date.
• Court order if a director is declared insolvent or unsound mind
• Death Certificate (If the director is dead)

Proofs that are not in Hindi or English should be translated into those languages by a professional translator who also seals the translation and includes his contact information (name, address, and signature). Foreign nationals may also use a translation performed by their home country’s notary.

Information that needs to be included in the Form DIR-5 for Surrendering of DIN

Any DIN holder who wants to surrender their DIN can do so by filing Form DIR 5 with MCA (Ministry of Corporate Affairs). The DIN holder must adhere to the guidelines and provide the following information when filling in the form mentioned above:

• Name of the DIN holder: First name, middle name, and last name
• First, middle, and last names of the father
• Reason for giving up DIN
• The DIN holder’s retention of any DIN: If so, the DIN holder must then disclose the number of the oldest DIN that he is still holding onto.
• The number of DINs that the DIN holder is returning is: The father’s name will automatically be filled in along with the information on the DIN number that needs to be given up by whom.
• Call or email the DIN Holder at: The DIN holder’s phone number and email address
• The holder’s digital signature while giving up their DIN (Director Identification Number)

Conclusion

The process for surrendering a DIN is quite simple, but the DIN holder must ensure, before submitting an application for surrender in Form DIR-5, that the director has not been appointed to any company or other legal entity while in possession of a DIN and that the DIN that is being surrendered has not been used in any document that is being submitted to a regulatory authority. The advent of E-form DIR-5 has made the process of surrendering a DIN very simple, transparent, and quick.