The 2025 amendment updates the requirement for DIR-3 KYC compliance from annual filings to a triennial format, prompting critical changes in compliance for directors.
Updates on DIR-3 KYC Compliance
The Ministry of Corporate Affairs (MCA) has made significant modifications to the DIR-3 KYC compliance framework. The 2025 amendment specifies that directors must now file KYC information once every three consecutive financial years, moving away from the previous annual requirement.
Directors are now required to align their compliance cycles according to the year of their DIN allotment and file by the stipulated deadline, which is set for 30 June of the relevant year. This marks a substantial shift in compliance obligations, reducing the frequency of filings while still maintaining essential oversight for corporate governance.
Legal practitioners must ensure that their clients are informed about this change in compliance frequency, which affects annual planning for corporate administration. As this transition occurs, practitioners can advise on maintaining proper records and adherence to the filing schedule to avoid penalties.
