MCA Eases KYC Compliance for Directors with New Three-Year Filing Cycle

The Corporate Affairs Ministry has simplified compliance for company directors by changing the annual KYC filing requirement to once every three years under the Companies Act, 2013. This decision follows recommendations from a High-Level Committee on Non-Financial Regulatory Reforms and stakeholder feedback. The updated rules were announced on December 31, 2025, and will be effective from March 31, 2026.

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Under the new framework, directors must submit a simplified KYC form every three years instead of annually. This form is designed for KYC compliance and can also update mobile numbers, email addresses, and residential addresses. Additionally, it facilitates the reactivation of the Document Identification Number (DIN).

Compliance Changes for Directors

The ministry stated that digital signature verification by the DIN holder or director and certification by a professional is required only when updating contact details or addresses in the KYC form. This amendment aims to ease compliance for directors across all companies.

Directors who have already completed their KYC requirements are included under the new rules. Their next KYC submission is due by June 30, 2028. Those who have not yet submitted their KYC forms can continue to reactivate their DINs under existing provisions until March 31, 2026.

The revised KYC process reflects efforts to streamline regulatory requirements while maintaining necessary checks. By reducing the frequency of filings, the ministry seeks to lessen the administrative burden on directors without compromising on essential updates and verifications.

With inputs from PTI