In this article, we will discuss about can an Individual apply for DIN before Incorporation of Company and what will be the process? If someone wants to get Director Identification Number (DIN), but such person does not have any relation with any Company and right now do not want to incorporate Company. Can such person apply for DIN? If yes, then what will be the process of the same?
A. General Provision:
- Section 153:
An individual who wants to be appointed as director of a company will make an application for DIN (Director Identification Number) allotment to the Central Govt. in such manner and with applicable fees as may be prescribed.
- Rule 9(1):
An individual, who wants to become a director of an existing company will make an application online in Form DIR-3, to the central Govt. for allotment of a Director Identification Number (DIN) with the fees as described under the companies (Registration offices and Fees) Rules, 2014.
Provided that in case of proposed directors does not have approved DIN, the particulars of maximum 3 directors will be mentioned in Form Number INC-32 (spice) and DIN may be allotted to maximum three proposed directors by Form INC-32 (spice).
B. What are the Ways to Obtain DIN?
There are two way to get DIN:
- In case an individual is incorporating new Company then he/she can apply DIN with Incorporation Form.
- Condition: Only 3 DIN can get apply with Incorporation form.
- In case an individual is getting appointment in existing Company.
- Condition: Such company pass a board resolution for application for Director Identification Number of such Individual & such Resolution needs to attach in e-form DIR-3.
C. Point Of Analysis:
There can be following Situations:
- An individual wants to incorporate Company with more than 3 directors and all directors does not have DIN. In this case how to get DIN?
- An individual wants to get DIN but do not want to get appointment in any Company as on date.
D. Analysis:
Situation 1: Incorporation with more than three Directors (does not have DIN)
Read Section 153 with Rule 9(1) Companies (Appointment & Qualification of Directors) Rules, 2014 and according to that the particulars of maximum 3 Directors will be mentioned in Form Number INC-32 (spice) & DIN may be allotted to Maximum 3 Proposed Directors through Form INC-32 (spice).
From the legal provisions it is clear that at the time of incorporation maximum 3 Din can apply. If more than 3 person (does not have DIN) want to incorporation Company in such case:
- First, they have to incorporate Company with 3 Directors, and then appoint fourth director after Incorporation with Board Resolution of Company.
Note: Only issue in above process is that, name of fourth person shall not be appear in AoA (Article of Association) as first director of the Company.
Situation 2: Apply for DIN without Board Resolution of any existing Company/ LLP
Read Section 153 with Rule 9(1) Companies (Appointment & Qualification of Directors) Rules, 2014 and according to this every applicant, who wants to be appointed as director of an existing company will make an electronic application in Form DIR-3, to the central Govt. for allotment of a Director Identification Number (DIN) along with copy of board resolution proposing his/her appointment as director in an existing company.
It is clear from the legal provisions, that DIN cannot be allot a person without
- Copy of Board Resolution of his/her appointment as director in an existing Company.
- Digital Signature Certificate (DSC) of Director of Existing Company on form DIR-3
Conclusion:
After reading all provisions which are mentioned above and situations one can consider that, as on date there are only two option to get DIN. The first one is with incorporation form & second with existing Company’s Copy of board Resolution. If a person doesn’t meet the condition with any of above provision, he/she can’t get DIN from the ministry.
Disclaimer: The entire contents of this document have been prepared based on relevant provisions and according to the information existing at the time of the preparation. Although care has been taken to ensure the accuracy & reliability of the information provided in this article. Kindly refer the relevant existing provisions of applicable Laws. The user of the information agrees that the information is subject to change without notice any time and it does not contain any professional advice.