Is the Directors’ Annual KYC Filing Requirement Now Once Every Three Years?
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Synopsis
The government has introduced a pivotal change in KYC filing regulations for company directors, shifting from an annual requirement to a more manageable every-three-years format. This new rule, effective from March 31, 2026, aims to simplify compliance, allowing directors to focus more on their core responsibilities.
Key Takeaways
- KYC filing replaced with a three-year intimation.
- Effective March 31, 2026.
- New KYC Form for multiple updates.
- Directors' next KYC due by June 30, 2028.
- Existing KYC processes remain until the new deadline.
New Delhi, Jan 1 (NationPress) The government has announced a significant change regarding the annual KYC filing requirement for directors in companies. This requirement has been simplified to a KYC intimation that will now occur once every three years, starting from March 31, 2026.
The annual KYC obligation for directors, which was mandated under rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, has undergone a review by the Ministry of Corporate Affairs. This review was influenced by insights from the High-Level Committee on Non-Financial Regulatory Reforms (HLC-NFRR) and feedback from stakeholders.
The relevant regulations have been modified by the Ministry of Corporate Affairs (MCA) in collaboration with associated ministries and departments.
According to the amendment officially announced on December 31, 2025 (effective from March 31, 2026), the previous annual KYC filing has transitioned to a more straightforward KYC intimation every three years.
This updated KYC Form can serve multiple purposes, including KYC compliance, updating of mobile numbers, email addresses, residential addresses, and the reactivation of DIN.
Only the verification (via digital signature) by the DIN holder or director and certification (also through digital signature) by the professional will be necessary if the KYC Form is used for updating mobile numbers, email addresses, or residential addresses.
This amendment is designed to provide substantial ease of compliance for directors across all companies.
Directors who have already completed their KYC obligations will be covered under these new regulations, with their next KYC filing due by June 30, 2028.
Directors who have yet to submit their KYC Form can continue to reactivate their DINs under the existing provisions until March 31, 2026, as stated by the ministry.
Point of View
This amendment marks a significant shift toward reducing bureaucratic hurdles for directors. By streamlining KYC processes, the government is not only enhancing compliance but also allowing directors to concentrate on their strategic roles within companies. This approach aligns with the broader objective of fostering a more business-friendly environment in India.
NationPress
10/01/2026
Frequently Asked Questions
What is the new KYC filing requirement for directors?
The annual KYC filing requirement has been changed to a KYC intimation every three years, effective from March 31, 2026.
Who is affected by this new regulation?
All directors in companies are impacted, especially those who have completed their KYC prior to this announcement.
What happens to directors who haven't completed their KYC?
Directors who have not submitted their KYC Form can still reactivate their DINs under existing provisions until March 31, 2026.
What is the purpose of the new KYC Form?
The revised KYC Form allows for compliance purposes, as well as updating personal information like mobile numbers and email addresses.
