ARTC1095 - Taxpublishers.in

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The Tax Publishers KYC Drive for Company's Directors--Overview Pragya Bhandari The Ministry of Corporate Affairs has introduced a new e-form DIR-3 KYC with a view to conduct KYC of all directors to update the registry. This article explains the same more lucidly. 1. Introduction The Ministry of Corporate Affairs (MCA) regulates corporate affairs in India. MCA also protects investors and offers many important services to stakeholders. In recent years, there has been a rise in the number of dummy directors, shell companies and money laundering activities. Know your customer (KYC) is a legal and regulatory requirement which helps to prevent identity threat, document forgery, financial fraud, money laundering and many more. Now, MCA is conducting KYC of all directors of all companies with an intention to update the registry. For this purpose, a new e-form DIR-3 KYC has been introduced which will have to file annually along with financial statements and annual reports to MCA. In this context, the MCA has notified the Companies (Appointment and Qualification of Directors) fourth Amendment Rules, 2018, which came into force from 10th July, 2018. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

KYC Drive for Company's Directors--Overview

Pragya Bhandari

The Ministry of Corporate Affairs has introduced a new e-form DIR-3 KYC with a view to conduct KYC of all directors to update the registry. This article explains the same more lucidly.

1. Introduction

The Ministry of Corporate Affairs (MCA) regulates corporate affairs in India. MCA also protects investors and offers many important services to stakeholders. In recent years, there has been a rise in the number of dummy directors, shell companies and money laundering activities. Know your customer (KYC) is a legal and regulatory requirement which helps to prevent identity threat, document forgery, financial fraud, money laundering and many more. Now, MCA is conducting KYC of all directors of all companies with an intention to update the registry. For this purpose, a new e-form DIR-3 KYC has been introduced which will have to file annually along with financial statements and annual reports to MCA. In this context, the MCA has notified the Companies (Appointment and Qualification of Directors) fourth Amendment Rules, 2018, which came into force from 10th July, 2018.