What is Director Identification Number-Why DIN is mandatory for all directors

What is Director Identification Number? Why DIN is mandatory for all directors?

What is Director Identification Number-Why DIN is mandatory for all directors

Direction Identification Number is an unique identification number given to existing or new director. Din is compulsory for all persons willing to become director. Director Identification Number which is also known as DIN, is allotted once in life of one person. So you can’t get 2 DIN number, and if you do so you are advised to surrender the second DIN allotted to you mistakenly.

The concept of DIN number had first come into existence after insertion of section 266A and 266B of Companies Act, 1956 (as amended vide Act No. 23 of 2006).

Why DIN number has become compulsory for existing or new directors?

Directors are responsible for managing affairs of companies. They are therefore given a lot of powers so that they could fulfil their responsibilities. But with time, it was noticed that directors started using these powers to their mean and they started to cheat stakeholders of the company.

Many a times, companies were created and directors raised money from public and they vanished suddenly but government was unable to trace them as there was no database of information of directors. Therefore, need was felt to make DIN number compulsory for all existing or new directors. DIN number has facilitated storage of personal information of directors in common database. From where, government may trace information of any of directors from this common database. Now, anyone who wants to be a director, has to furnish his identity and address proof at the time of application for allotment of DIN number. Not only this, he has to intimate if there is any change in information furnished after allotment of DIN to the government.

Thus, we have seen that DIN number, which is also known as Director Identification Number, is an unique identification number allotted to all persons aspiring to be director in India.

If you want to get DIN number in India, contact us at +91-85400-99000, +91-85400-85000, +91-85400-78000.

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What is Director Identification Number-Why DIN is mandatory for all directors

What is Director Identification Number-Why DIN is mandatory for all directors

What is Director Identification Number-Why DIN is mandatory for all directors

What is Director Identification Number-Why DIN is mandatory for all directors

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