In a significant move aimed at reducing the compliance burden on corporate leaders, the Ministry of Corporate Affairs (MCA) has overhauled the annual KYC requirement for company directors. The mandatory yearly filing has now been replaced with a simplified, once-in-three-years obligation.
Key Changes to the Director KYC Framework
The decision follows a comprehensive review of Rule 12A of the Companies (Appointment & Qualification of Directors) Rules, 2014. The ministry acted on recommendations from the High Level Committee on Non-Financial Regulatory Reforms and incorporated feedback from various stakeholders. The official notification for the amended rules was issued on December 31, 2025.
The new regime will officially come into force from March 31, 2026. Under the revised framework, directors are now required to submit an abridged KYC intimation only once every three years, doing away with the previous annual mandate.
Introducing the Revised DIN-KYC Form
The ministry has introduced a revised KYC form designed for multiple purposes. This single form can be used for:
- Triennial KYC compliance.
- Updating mobile numbers, email addresses, and residential addresses.
- Reactivation of a Director Identification Number (DIN).
Verification through a digital signature and certification by a professional will be mandatory only when the form is submitted to update contact details like mobile number, email, or address. For standard triennial KYC filings, this step is not required, further simplifying the process.
Deadlines and Transition Provisions
The ministry has provided clear timelines for the transition. All directors who have already completed their KYC requirements are covered under the new provisions. Their next KYC filing will now be due by June 30, 2028.
For directors who have not yet submitted their KYC forms, the existing provisions for DIN reactivation will remain applicable until March 31, 2026. This amendment is expected to provide substantial ease of compliance for directors across all companies, from large listed entities to small private firms.
This reform is a part of the government's ongoing efforts to improve the ease of doing business in India by rationalising regulatory procedures and reducing repetitive compliance tasks for corporate professionals.
