SURRENDER OF DIN

SURRENDER OF DIN

Surrendering a Director Identification Number (DIN) is done by filing Form DIR-5 with the Ministry of Corporate Affairs (MCA). The process is available for directors who meet specific conditions, such as those who have never been appointed to a company or who hold multiple DINs. The Central Government, upon verification, will deactivate the DIN. 

Reasons for surrendering a DIN

A DIN can be surrendered voluntarily by the holder or via an order from the Central Government. Common reasons include: 

• Voluntary surrender: The DIN holder has never been appointed a director in any company or LLP, and the DIN was never used for any regulatory filing.
• Duplicate DINs: If a person was mistakenly issued more than one DIN, they must surrender the newer DIN(s) and retain the oldest one.
• Death of the holder: In case of the director's death, a relative can file for the surrender of the DIN.
• Disqualification: If a director has been declared of unsound mind or adjudicated as an insolvent by a court, the DIN can be surrendered with the court order.
• Obtained fraudulently: If the DIN was obtained by wrongful or fraudulent means, it can be surrendered or cancelled by the Central Government. 

Process for surrendering a DIN

1. File e-Form DIR-5: The application to surrender a DIN must be filed electronically through Form DIR-5 on the MCA portal.
2. Attach supporting documents: The form must be submitted along with the following:
   • Proof of identity (PAN Card).
   • Proof of address (e.g., Aadhaar card, passport, driving license).
   • A notarized declaration stating that the DIN was never used for filings and that the individual was never appointed as a director in any company.
   • Relevant court orders or death certificates, if applicable.
3. Pay the fee: The prescribed fee for filing Form DIR-5 is ₹1,000.
4. Digitally sign: The form must be digitally signed by the applicant and professionally certified by a practicing Chartered Accountant, Company Secretary, or Cost Accountant.
5. Submit and track: Upon successful submission, a Service Request Number (SRN) is generated. The MCA will then process the application. Once approved, the DIN is deactivated. 

Important considerations

• No DIN usage: Before surrendering, it is crucial to confirm that the DIN was never used for any official filings or appointments.
• Annual KYC filing: Failure to file the annual eForm DIR-3 KYC can lead to the deactivation of a DIN, but this requires a different reactivation process and a penalty payment rather than a surrender.
• No reappointment: Once a DIN is surrendered and deactivated, the individual cannot be appointed as a director again unless they obtain a fresh DIN.
• Multiple DINs: If surrendering a duplicate DIN, the directorships associated with it must first be compounded or migrated to the oldest, retained DIN.