Procedure for Cancellation/Surrender/Deactivation of DIN

The Director Identification Number (DIN) is a unique 8-digit number allotted by the Ministry of Corporate Affairs (MCA) to an individual intending to be appointed as a director in an Indian company. Introduced under Section 153 of the Companies Act, 2013, the DIN serves as a permanent identifier for directors and ensures regulatory traceability across all companies where they serve.

However, in certain cases, a DIN may need to be cancelled, surrendered or deactivated, such as when it is obtained in duplicate, by mistake or when the individual has passed away or never used the number. To maintain accuracy and prevent misuse, the MCA has prescribed specific procedures for such actions under Rule 11 of the Companies (Appointment and Qualification of Directors) Rules, 2014.

Procedure for Cancellation of DIN

This article explains in detail the official procedure for cancellation, surrender and deactivation of a DIN under the Companies Act, 2013.

A. Governing Provisions of the Companies Act, 2013

1. Section 153 – Application for allotment of Director Identification Number (DIN)
2. Rule 11 of the Companies (Appointment and Qualification of Directors) Rules, 2014 – Governs cancellation, surrender and deactivation of DIN

B. Understanding Director Identification Number (DIN)

A DIN is a lifetime identification number issued to individuals who wants to serve as directors. It helps the MCA and regulatory bodies maintain accurate records of directors’ involvement in various companies.

Key legal references:

• Section 154 – Allotment of DIN by Central Government
• Section 155 – Restriction on obtaining more than one DIN
• Section 156 – Director to intimate DIN to the company
• Section 157 – Company to inform DIN to the Registrar
• Rule 11 – Covers the procedure for surrender, cancellation and deactivation of DIN.

C. Procedure for Cancellation or Deactivation of DIN

The Central Government or the Regional Director (Northern Region), Noida or any other officer authorised by the Regional Director may, upon verification of particulars or documents attached with the application, cancel or deactivate a DIN in the following cases:

1. Duplicate DIN:

The DIN is found to be duplicated for the same individual. In such a case, the data related to both DINs will be merged and only one valid number will be retained.

2. DIN obtained in wrongful or fraudulent manner:

If it is found that the DIN was acquired through fraudulent means or by misrepresentation, it shall be cancelled after providing an opportunity of being heard to the concerned individual.

3. Death of the individual:

When the DIN holder is deceased, the legal heir may apply for cancellation.

4. Unsound mind declaration:

If the person has been declared of unsound mind by a competent court.

5. Adjudicated insolvent:

If the individual has been adjudicated insolvent by a competent court.

Note: Before cancellation or deactivation under clause (b) (fraudulent means), the concerned individual must be given an opportunity of being heard.

D. Procedure for Surrender of DIN

An individual may voluntarily surrender their DIN if they no longer intend to act as a director or have never used the DIN since its allotment.

Step 1: Preparation of e-Form DIR-5

The applicant (or legal heir, in case of death) must file e-Form DIR-5 with the Ministry of Corporate Affairs. The form is available on the MCA portal.

Step 2: Attachments Required with Form DIR-5

The following documents must be attached:

• Proof of identity – Self-attested copy of PAN, Passport or Aadhaar Card
• Proof of residence – Latest utility bill, bank statement or other valid address proof
• Affidavit / Declaration  – stating that the retained DIN (if any) will be updated with all CIN/LLPIN associations and that the surrendered DIN has never been used (if applicable)
• Copy of death certificate – In case of deceased individual
• Court order – In case of declaration of unsound mind or insolvency

Step 3: Certification of Form DIR-5

The form must be digitally signed and certified by a practising Chartered Accountant (CA), Company Secretary (CS) or Cost Accountant (CMA) as required under the Rules.

Step 4: Filing and Fee Payment

The applicant must file the form electronically on the MCA portal (www.mca.gov.in) and pay the prescribed fee.

Step 5: Verification and Approval by Regional Director

Once the DIR-5 is filed:

• The MCA verifies the application and attached documents.
• Upon satisfaction, the Regional Director or the authorised officer approves the surrender and the DIN is deactivated or cancelled in the MCA system.

The applicant receives an email confirmation once the process is complete.

E. Auto Deactivation of DIN

Under Rule 12A, a DIN may be automatically deactivated if the individual fails to file e-Form DIR-3 KYC or DIR-3 KYC-WEB within the stipulated time each year.

Key points:

• The DIN becomes inactive if the KYC is not filed on time.
• The DIN can be reactivated only after filing e-Form DIR-3 KYC or DIR-3 KYC-WEB and paying the prescribed fee.
• This auto deactivation mechanism helps maintain the integrity and currency of the MCA database.

F. Applicability to Different Company Types

There are no exemptions or variations in the DIN surrender or deactivation procedure based on the type of company. The same process applies to directors of private, public, LLP or Section 8 companies.

G. Consequences of Surrender or Deactivation

Once a DIN is cancelled, surrendered or deactivated:

• The individual cannot be appointed as a director in any company.
• The DIN cannot be used for filing any documents with the Registrar of Companies (ROC).
• In case of deactivation due to non-filing of KYC, the DIN can be reactivated after compliance.
• The MCA database is updated to reflect the status as “Cancelled,” “Surrendered,” or “Deactivated.”

H. Key Points to Remember

• Each person can hold only one DIN for a lifetime.
• Form DIR-5 is the only valid form for voluntary surrender.
• The form must always be certified by a practising professional.
• The Regional Director’s approval is mandatory for the purpose of cancellation or surrender.
• Filing DIR-3 KYC annually is crucial to maintain an active DIN status.

Conclusion

The Director Identification Number (DIN) ensures accountability, transparency and traceability of company directors in India. However, maintaining the accuracy of this database is equally vital. The Companies Act, 2013, read with the Rule 11 of the Companies (Appointment and Qualification of Directors) Rules, 2014, lays down a well-defined process for cancellation, surrender and deactivation of DINs to prevent duplication, misuse or inconsistencies.

By following the official process through Form DIR-5, submitting the correct documents and completing KYC, individuals and companies can keep accurate and legal records with the Ministry of Corporate Affairs, helping to build key element, such as trust and transparency in India’s corporate system.