The Ministry of Corporate Affairs (MCA) has introduced a major overhaul of the DIR-3 KYC compliance framework to reduce repetitive filings while ensuring updated director records. These changes, effective 31 March 2026, mark a shift from annual compliance to a structured, event-based system.

Key Highlights of the Amendment

• Once in Three Years Filing
  • Directors holding DIN as on 31 March of a financial year must file DIR-3 KYC Web once every third consecutive financial year.
  • Due date: On or before 30 June of the relevant year.
• Mandatory Update Within 30 Days
  • Any change in:
    • Mobile number
    • Email ID
    • Residential address
      must be updated within 30 days through DIR-3 KYC Web along with applicable fees under the Companies (Registration Offices and Fees) Rules, 2014.
• Form Rationalisation
  • Existing DIR-3 KYC eForm and DIR-3 KYC Web have been consolidated into a single DIR-3 KYC Web system.
• Effective Date & Legal Backing
  • Effective from 31 March 2026
  • Vide Notification No. G.S.R. 943(E) dated 31 December 2025

Illustrative Scenarios for Better Understanding

• Illustration 1: New DIN Allotment
  • DIN allotted in FY 2025-26
  • First KYC due: April–June 2029
  • Thereafter: every third financial year
• Illustration 2: Existing Directors
  • KYC already filed for FY 2025-26
  • No filing required for FY 2026-27 & 2027-28 (if no changes)
  • Next due: April–June 2028
• Illustration 3: Change in Details During Cycle
  • DIN allotted in FY 2025-26
  • Details updated in FY 2027-28
  • Next KYC still due in April–June 2029
  • Update does not reset the 3-year cycle

Practical Impact on Directors & Companies

• Reduced Compliance Burden
  Eliminates unnecessary annual filings where no changes exist.
• Stronger Real-Time Governance
  Mandatory 30-day update ensures MCA records remain accurate.
• Risk of Non-Compliance
  • DIN may be deactivated
  • Additional fees for reactivation
  • Disruption in company filings and board participation

Frequently Asked Questions (FAQs)

1. Is DIR-3 KYC required every year now?
No, it is required once every three financial years, unless there is a change in details.

2. What happens if I change my mobile number or email?
You must update the same within 30 days, failing which penalties may apply.

3. Will updating details reset the 3-year cycle?
No, the cycle is based on the year of DIN allotment or last KYC due cycle, not on interim updates.

4. What is the penalty for non-filing?
DIN may be marked as “Deactivated due to non-filing of KYC”, requiring payment of fees for reactivation.

5. Is DIR-3 KYC eForm still applicable?
No, it has been replaced with a unified DIR-3 KYC Web system.

Legal References

• MCA Notification No. G.S.R. 943(E) dated 31 December 2025
• Companies Act, 2013 – Sections 153 & 154
• Companies (Registration Offices and Fees) Rules, 2014
• MCA21 official update (via X/Twitter)

Conclusion

This amendment represents a balanced regulatory approach—less frequent compliance with stricter real-time accountability. Directors must ensure timely updates and track their KYC cycle carefully to avoid penalties and operational disruptions.

-CS Anand Acharya

Anand Acharya & Associates 

Company Secretarites

Address: First Floor, Market near LIC building, C-15, Govind Nagar, Raipur, Chhattisgarh 492001
Phone: 091117 99837

Website: anandacharyaassociates.in