MCA Notifies Major Changes in Directors KYC Rules – DIR-3-KYC Amendment 2025
The Ministry of Corporate Affairs (MCA) has issued an important notification dated 31 December 2025, introducing the Companies (Appointment and Qualification of Directors) Amendment Rules, 2025. These amendments bring significant relief to directors by simplifying the Director KYC (Know Your Customer) compliance process while simultaneously strengthening the accuracy and timeliness of director information available with the MCA.
This update is particularly relevant for company directors, professionals (CA/CS/CMA), startups, private limited companies, LLPs, and compliance teams, as it changes both the frequency and manner of DIR-3-KYC filing.
This article explains the update in detail, its practical impact, and what directors should do going forward.
Background: What Is DIR-3-KYC?
DIR-3-KYC is a mandatory compliance requirement under the Companies Act, 2013 for individuals holding a Director Identification Number (DIN). The purpose of DIR-3-KYC is to ensure that the MCA has accurate, verified, and updated personal details of directors, such as:
- Mobile number
- Email ID
- Residential address
- Identity details linked with PAN
Non-compliance with DIR-3-KYC requirements has historically resulted in deactivation of DIN, causing serious issues in company filings and statutory compliance.
What Has Changed Under the DIR-3-KYC Amendment Rules, 2025?
The 2025 amendment introduces several important changes, effective from 31 March 2026.
1. DIR-3-KYC Filing Required Only Once Every 3 Years
One of the most significant changes is the reduction in filing frequency.
Under the amended Rule 12A:
- Every individual who holds a DIN as on 31 March of a financial year is required to file DIR-3-KYC only once every three consecutive financial years.
- The due date for filing remains 30 June of the immediately following year.
This replaces the earlier practice where DIR-3-KYC was required every year, even if there were no changes in director details.
Impact:
This change substantially reduces repetitive compliance and administrative burden for directors.
2. Only DIR-3-KYC-WEB Will Be Applicable
The MCA has now discontinued the standalone e-form DIR-3-KYC.
From 31 March 2026 onwards:
- Only Form No. DIR-3-KYC-WEB will be used
- Filing will be done entirely through the MCA web-based system
This move aligns with the government’s objective of fully digitising corporate compliance processes.
3. Mandatory KYC Update Within 30 Days of Any Change
While periodic filing has been relaxed, the MCA has introduced a strict real-time update requirement.
If there is any change in the following details of a DIN holder:
- Personal mobile number
- Personal email ID
- Permanent or present residential address
Then:
- DIR-3-KYC-WEB must be filed within 30 days of such change
- Applicable fees as prescribed under the Companies (Registration Offices and Fees) Rules, 2014 will apply
Important: This requirement applies irrespective of whether the 3-year KYC cycle is due or not.
4. New Detailed DIR-3-KYC-WEB Format Introduced
The amendment also notifies a new, detailed format of DIR-3-KYC-WEB, which includes:
- OTP verification for mobile number and email ID
- PAN verification through Income Tax database
- Disclosure of nationality and date of birth
- Permanent and present residential address details
- Mandatory attachment of address proof
- Digital signature of the director
- Certification by a practicing CA, CS, or CMA
This ensures higher data authenticity and reduced misuse of DINs.
5. Technical Change in Authority Designation
The amendment also updates the nomenclature of the approving authority:
- Earlier: Regional Director (Northern Region), Noida
- Now: Regional Director, Northern Region Directorate-I
This is an administrative change and does not impact practical compliance requirements.
Effective Date of the Amendment
The Companies (Appointment and Qualification of Directors) Amendment Rules, 2025 will come into force from:
📅 31 March 2026
All DIR-3-KYC filings made on or after this date will be governed by the amended rules.
Practical Implications for Directors and Companies
- Directors are no longer required to file DIR-3-KYC every year
- Compliance calendars must now track the 3-year filing cycle
- Immediate updates within 30 days of changes are critical
- Failure to comply may still lead to DIN deactivation and penalties
Companies should maintain proper internal records and periodically confirm that their directors’ contact details remain unchanged.
What Should Directors Do Now?
- Review whether any personal details have changed recently
- Ensure timely filing of DIR-3-KYC-WEB within 30 days, if applicable
- Mark the next 3-year DIR-3-KYC due date in compliance calendars
- Consult a professional to avoid errors, delays, or DIN deactivation
The DIR-3-KYC Amendment Rules, 2025 strike a balance between ease of compliance and regulatory discipline. While directors benefit from reduced repetitive filings, the MCA has clearly emphasised the importance of timely and accurate updation of personal information.
Directors and companies should treat this amendment as an opportunity to streamline compliance while remaining vigilant about statutory timelines.
For professional assistance in DIR-3-KYC filing, DIN reactivation, or corporate compliance matters, expert guidance can help ensure error-free and timely compliance.
Contact Details
Kyna FinTax Associates
WZ-1390/Z2, 3rd Floor, Nangal Raya Extension
South West Delhi – 110046
+91 74210 82222
services@kynafintax.com
https://kynafintax.com