Global Partner. Integrated Solutions.
02 January 2026
MCA Rationalizes Yearly Director DIN KYC Compliance
 
The Ministry of Corporate Affairs ("MCA") has notified the Companies (Appointment and Qualification of Directors) Amendment Rules, 2025 ("Amendment Rules"). The Amendment Rules shall come into effect from 31st March 2026.

The Amendment Rules primarily rationalizes the director's identification number ("DIN") KYC compliance. The comparatives are enumerated in the table below:

Particulars Position prior to Amendment Rules Position after Amendment Rules
Recurring director KYC Every director holding valid DIN must complete one-time password (OTP) based annual KYC on or before 30 September every year Every director holding valid DIN must complete one-time password (OTP) based KYC on or before 30 June every third consecutive year
Event based director KYC Updates to mobile number or email address require submitting e-Form DIR-3 KYC. Updates to mobile number, email address, or residential address must be submitted within 30 days of change using DIR-3 KYC Web form.
Change in address Changes for foreign nationals require attestation of address proof by an authority outside India, per the certification language in e-Form DIR-3 KYC. The certification language in DIR-3 KYC Web form omits this requirement, so attestation of address proof by an authority outside India may not be needed.

The Amendment Rules discontinue the earlier forms DIR-3 KYC and DIR-3 KYC-Web, introducing a single DIR-3 KYC Web form.
Our Comments

The MCA has rationalized the DIN KYC by removing annual compliance requirements and making it applicable every three years. This would not only substantially reduce compliance burden on the directors but also reduce strain on the MCA system. Although, maintaining the three-year compliance data base will be task for the companies and professionals, however, it will certainly relive administrative pain of obtaining OTP annually from the directors particularly foreign nationals and frequent travellers.

USA | Canada | Poland | UAE | India | Japan
Reach out to us at ThinkNext@nexdigm.com
DISCLAIMER
This alert contains general information which is provided on an "as is" basis without warranties of any kind, express or implied, and is not intended to address any particular situation. The information contained herein may not be comprehensive and should not be construed as specific advice or opinion. This alert should not be substituted for any professional advice or service, and it should not be acted upon or relied upon or used as a basis for any decision or action that may affect you or your business. It is also expressly clarified that this alert is not intended to be a form of solicitation or invitation or advertisement to create any adviser-client relationship.

While every effort has been made to ensure the accuracy of the information contained in this alert, the same cannot be guaranteed. We accept no liability or responsibility to any person for any loss or damage incurred by relying on the information contained in this alert.

© 2026 Nexdigm. All rights reserved.