MCA relaxes KYC norms for directors, replaces annual filing with 3-yr cycle

New Delhi, Jan 1 (PTI) The Corporate Affairs Ministry has eased compliance requirements for company directors by replacing the mandatory annual KYC filing with an abridged requirement of once every three years under the Companies Act, 2013.

The change follows a review of Rule 12A of the Companies (Appointment & Qualification of Directors) Rules, 2014, based on the recommendations of the High Level Committee on Non-Financial Regulatory Reforms and suggestions received from stakeholders, the ministry said in a release.

The amended rules were notified on December 31, 2025, and will come into effect from March 31, 2026.

Under the revised framework, directors will be required to submit a simplified KYC intimation once every three years, replacing the annual KYC filing requirement.

A revised KYC form has been introduced, which can be used not only for KYC compliance but also for updating mobile numbers, email addresses and residential addresses, as well as for reactivation of the Document Identification Number (DIN).

The ministry said that verification through a digital signature by the DIN holder/director and certification by a professional will be mandatory only if the KYC form is submitted for the updation of mobile number, email address or residential address.

This amendment is aimed at providing significant ease of compliance to directors in all companies.

All directors who have completed their KYC requirements to date are covered under the new provisions, and accordingly, their next KYC filing would be due by June 30, 2028.

Also, the directors, who have not submitted their KYC Form so far, may continue to get their DINs re-activated as per existing provisions till March 31, 2026, it added. PTI HG HG BAL BAL