DIN Change or Surrender – Easy Process Explained
A Director Identification Number (DIN) is a special number given by the government to a person who wants to become a company director in India. It is like an ID number that helps keep track of all the companies that person is working with. This number is given by the Ministry of Corporate Affairs (MCA) and stays the same for life. But sometimes, a person may need to change something in the DIN, like their name or address. Or maybe they don’t want to be a director anymore. In that case, they can surrender their DIN. This is called DIN change or surrender. It is important to follow the right steps when doing this, so everything is legal and correct.
Surrender of Director’s Identification Number becomes very important by those DIN holders who are neither Director in any Company nor Designated Partner in any LLP and also not intending to do so in near future. For surrendering DIN an application shall be made in Form DIR-5 by the DIN holder along with declaration that he has never been appointed as director in any company and the said DIN has never been used for filing of any document with any authority. Before deactivation of any DIN in such case, the Government shall verify e-records. Therefore, one can opine that, if a person held directorship in any company during his life using such DIN, that DIN can’t be surrender by filing of E-form DIR-5.
Purpose for Surrender of DIN:
Application for surrender of DIN in E-form DIR-5 can be filed with any reason such as:
- Having multiple DINs
- DIN was obtained in a wrongful manner or by fraudulent means
- Death of the concerned individual
- Concerned individual is declared as a person of unsound mind by a competent court
- Concerned individual has been adjudicated as insolvent
- Concerned individual is/was not associated with any company/LLP