Directors No Longer Need Annual KYC, MCA Moves Filing To Three-Year Cycle

The Ministry of Corporate Affairs has relaxed compliance requirements for company directors by moving Director Know Your Customer filings from an annual exercise to once every three years. The change was notified on December 31, 2025, through the Companies (Appointment and Qualification of Directors) Amendment Rules, 2025, and will take effect from March 31, 2026. As per the new rules, individual directors who hold a Director Identification Number as on March 31 of a financial year will no longer have to complete KYC every year. Instead, they will be required to file a KYC intimation once after every three consecutive financial years.The filing must be completed on or before June 30 of the financial year immediately following the end of the three-year period.A Director Identification Number, or DIN, is a unique number issued by the government to anyone appointed as a director in an Indian company. Director KYC is the process through which such individuals confirm their identity and contact details with the Ministry of Corporate Affairs.While the routine filing has been spaced out, the government has made it clear that directors must still keep their personal details updated. Any change in a director's personal mobile number, email address, or residential address must be reported within 30 days of the change. Such updates will have to be filed with the prescribed fee under the Companies (Registration Offices and Fees) Rules, 2014. All KYC-related filings will now be made through a single online form, Form DIR-3-KYC-Web, available on the MCA portal. The amendment does away with the earlier practice of using separate forms for annual KYC and web-based filings, and replaces them with one consolidated form. The form will be used not only for the three-year KYC compliance but also for updating contact or address details and for reactivation of DINs that have been deactivated due to non-compliance. The amended rule states, “Every individual who holds a Director Identification Number as on the 31st March of a financial year, shall file KYC intimation in Form No. DIR-3-KYC-Web to the Central Government on or before the 30th June of the immediately following every third consecutive financial year.” The form must be digitally signed by the director. In certain cases, such as DIN reactivation or specific updates, it must also be certified by a practising professional, either a Chartered Accountant, Cost Accountant, or Company Secretary. The notification also carries a warning against incorrect filings. Incorrect filings can invite actions under Sections 448 and 449 of the Companies Act, 2013. Notification: Gazette Notification No. G.S.R 943 (E) dated 31st December, 2025 Click Here to Read Notification

Directors No Longer Need Annual KYC, MCA Moves Filing To Three-Year Cycle

Shivangi Bhardwaj

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