MCA Eases KYC Compliance Burden for Directors: Key Changes You Should Know

In an effort to reduce the compliance burden for companies’ directors, the government has introduced a major change to the KYC Rules. The Ministry of Corporate Affairs (MCA) recently issued a Notification No. G.S.R. 943(E) dated 31 December 2025, through which the central government notified the new Companies (Appointment and Qualification of Directors) Amendment Rules, 2025. This amendment replaces Rule 12A of the Companies (Appointment & Qualification of Directors) Rules, 2014. The notification will come into effect from March 31, 2026.

The amendment was made by the central government using its power given under sections 149, 150, 152, 153, 154, 157 and other relevant provisions read with Section 469 of the Companies Act, 2013.

Earlier, the Directors were required to annually submit the e-form DIR-3-KYC. The annual due date was September 30th of each financial year. Failure to submit this resulted in a late filing fee of Rs 5,000 under the Companies (Registration Offices and Fees) Rules, 2014, along with the deactivation of DIN.

However, as per the latest amendment notified by MCA on December 31, 2025, the annual requirement of KYC filing has been replaced with a KYC filing once every three years. The due date has now shifted to June 30th. As per the new DIN framework, “Every individual who holds a Director Identification Number as of the 31st March of a financial year, shall file KYC intimation in Form No. DIR-3 KYC Web to the Central Government on or before the 30th June of the immediately following every third consecutive financial year.”

The new KYC form can be used to update the email address, mobile number or residential address. It can also be used for the reactivation of DIN. Any changes to your mobile number, email, or residential address must be reported on the DIR-3 KYC Web within 30 days, along with the prescribed fee. This requirement is different from the triennial KYC cycle and follows the MCA’s earlier guidelines.

The amendment will offer much-needed relief to the directors in all companies by reducing the compliance burden. All directors who have already completed their KYC are covered under the new rules. For them, the next KYC filing will be required by 30 June 2028. Directors who have not yet submitted their KYC can still get their DIN reactivated by following the current rules. This option will remain available until 31 March 2026.