The Ministry of Corporate Affairs (MCA) has made a significant regulatory reform that will dramatically ease compliance burden for company directors across India. Effective from 31st March 2026, the much-anticipated Director KYC amendment replaces the annual filing requirement with a triennial (3-yearly) filing cycle. This is a major shift in corporate governance compliance that every director needs to understand thoroughly.

What is the Director KYC Amendment 2025?

The Companies (Appointment and Qualification of Directors) Amendment Rules, 2025 (G.S.R. 943(E)) notified on 31st December 2025, introduces a fundamental change in how directors maintain their KYC (Know Your Customer) information with the Ministry of Corporate Affairs. Prior to this amendment, all directors holding a Director Identification Number (DIN) were required to file their KYC details annually through Form DIR-3 KYC or DIR-3 KYC-WEB by 30th September of each financial year.

The new rules completely reshape this compliance regime by moving from an annual requirement to a triennial (once every three years) filing cycle. This amendment is in line with the Government of India’s Ease of Doing Business initiative and aims to significantly reduce the administrative burden on directors while maintaining regulatory oversight.

Key Changes Under the Amendment

  1. From Annual to Triennial Filing
    The most significant change is the shift from annual to triennial KYC filing. Every individual holding a Director Identification Number (DIN) as on 31st March of a financial year shall now file KYC intimation in Form No DIR-3 KYC Web to the Central Government on or before 30th June of the immediately following every third consecutive financial year.

For example, if a director’s DIN is active as of 31st March 2026, they must file their KYC by 30th June 2027 (FY 2026-27). After that, the next filing would be due by 30th June 2030.

  1. Unified Form: DIR-3 KYC Web
    The amendment consolidates the compliance mechanism by mandating a single form—Form No. DIR-3 KYC Web—for all KYC filings. The previous dual forms (e-form DIR-3 KYC and DIR-3 KYC-WEB) have been replaced by this unified web-based form, simplifying the process for directors.
  2. Event-Based Updates: Change of Particulars
    While triennial filing provides significant relief, directors must still comply with mandatory event-based filing. If there is any change in personal information, directors must file within 30 days:
  • Change in personal mobile number
  • Change in email address
  • Change in residential address

These event-based filings are mandatory regardless of the triennial cycle and must be accompanied by applicable fees as per the Companies (Registration Offices and Fees) Rules, 2014.

When Does This Amendment Come Into Force?

The Companies (Appointment and Qualification of Directors) Amendment Rules, 2025 came into effect on 31st March 2026. This means:

  • The new triennial filing requirement applies prospectively from FY 2025-26 onwards
  • Directors must file their KYC for FY 2025-26 by 30th June 2027 (next triennial cycle)
  • Any director who filed their KYC for FY 2024-25 (whether annual or in previous cycles) now has a longer window before the next mandatory filing
  • The first filing deadline under the new system will be 30th June 2027 for directors whose DIN is active as on 31st March 2026

Why Did MCA Introduce This Amendment?

The Ministry of Corporate Affairs introduced this amendment based on recommendations of the High Level Committee on Non-Financial Regulatory Reforms and stakeholder feedback. The rationale includes:

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  1. Ease of Compliance: Directors currently handle multiple compliance requirements; reducing annual KYC filing to triennial significantly eases this burden
  2. Regulatory Efficiency: While maintaining oversight, the amendment acknowledges that director information doesn’t change frequently enough to warrant annual filings
  3. Faster Company Closure: The amendment also aims at faster closure of government companies eligible for removal from the register under Section 248(2) of the Companies Act, 2013
  4. Ease of Doing Business: This aligns with the Government’s broader initiative to simplify business compliance and attract better corporate governance

Compliance Timeline: A Practical Guide for Directors

To help directors understand the new filing timeline, here’s a practical breakdown:

For Directors whose DIN is Active as on 31st March 2026:

  • Filing Window: 1st April 2026 to 30th June 2027 (15 months)
  • Form to Use: DIR-3 KYC Web
  • Next Filing Due: On or before 30th June 2030 (after 3 financial years)

For Directors whose DIN is Active as on 31st March 2027:

  • Filing Window: 1st April 2027 to 30th June 2028
  • Form to Use: DIR-3 KYC Web
  • Next Filing Due: On or before 30th June 2031

For Directors with Change in Personal Information (Any Time):

  • Filing Window: Within 30 days of the change
  • Form to Use: DIR-3 KYC Web
  • Applicable Fee: As per Companies (Registration Offices and Fees) Rules, 2014

Important Note: The term “every third consecutive financial year” means directors need not file every year. A director whose DIN is active on 31st March 2026 will next need to file on or before 30th June 2030, provided their information remains unchanged.

Benefits of the Director KYC Amendment for Directors and Companies

  1. Reduced Compliance Burden: Directors no longer need to file KYC every year. This significantly reduces administrative overhead and time spent on compliance-related paperwork. For directors managing multiple board positions, this is substantial relief.
  2. Lower Compliance Costs: Fewer filings mean lower professional fees paid to company secretaries, chartered accountants, or compliance advisors for KYC-related services.
  3. Simplified Form Structure: The unification of DIR-3 KYC and DIR-3 KYC-WEB into a single Form DIR-3 KYC Web removes confusion and simplifies the filing mechanism.
  4. Event-Based Flexibility: Directors can still update their information promptly when changes occur (within 30 days), ensuring regulatory accuracy while avoiding unnecessary annual filings.
  5. Better Business Focus: By reducing compliance requirements, directors can focus more on strategic business decisions rather than administrative formalities.

Consequences of Non-Compliance: What Directors Must Avoid

Non-filing of KYC remains a serious matter with significant consequences:

  1. DIN Deactivation: If a director fails to file KYC by the due date, their Director Identification Number (DIN) will be marked as “Deactivated” due to non-filing. A deactivated DIN cannot be used for any corporate governance functions.
  2. Inability to Function as Director: A deactivated DIN means the director cannot hold directorship in any company, practice as a company secretary, or function in regulatory capacity until reactivation.
  3. Regulatory Penalties: While specific penalty amounts vary, non-compliance invites regulatory action from MCA authorities.
  4. Reactivation Complexity: Reactivating a deactivated DIN involves additional documentation and processing time, causing further delays in resuming directorship.
  5. Impact on Company Compliance: A company with a director having a deactivated DIN may face regulatory challenges and compliance issues.

How to File DIR-3 KYC Web: Step-by-Step Process

Directors can file the new Form DIR-3 KYC Web through the MCA portal. Here’s the process:

  1. Visit the MCA website (mca.gov.in) and log in with your DIN credentials
  2. Navigate to “MCA Services” > “Company e-Filing” > “DIN Related Filings”
  3. Select “Form DIR-3 KYC Web”
  4. Enter your Director Identification Number (DIN)
  5. Provide your current mobile number and email address
  6. Verify the OTP sent to your registered mobile and email
  7. Update your personal information as required
  8. Make the declaration that the information is correct
  9. Digitally sign the form using your DSC (Digital Signature Certificate)
  10. Submit the form and retain the SRN (Submission Reference Number)

Important Considerations for Directors

  1. Track Your Filing Dates: Set calendar reminders for your triennial filing due date. For the first cycle (FY 2025-26), the deadline is 30th June 2027.
  2. Monitor Personal Information Changes: Remember that any change in mobile number, email, or residential address must be reported within 30 days, regardless of the triennial cycle.
  3. Maintain Accurate Records: Keep copies of all KYC filing confirmations, SRNs, and related documents for your records and audit purposes.
  4. Plan for Multiple Directorships: If you hold directorships in multiple companies, ensure you file KYC separately as a director (not at company level). The new triennial cycle applies uniformly to all your directorships.
  5. Pay Attention to Fees: Understand that event-based updates (when reporting changes) may incur fees as per the Companies (Registration Offices and Fees) Rules, 2014.
  6. Educate Your Board: If you’re a company secretary or compliance officer, brief the board about the new amendment to ensure all directors understand the new filing requirements.

Official References and Legal Citations

For directors seeking to verify the information or access official notifications, here are the key references:

  1. Primary Notification: Companies (Appointment and Qualification of Directors) Amendment Rules, 2025, notified vide G.S.R. 943(E), dated 31st December 2025. Published in The Gazette of India: Extraordinary, Part II, Section 3.
  2. Principal Rules: Companies (Appointment and Qualification of Directors) Rules, 2014 (as amended from time to time), originally published vide G.S.R. 259(E) dated 31st March 2014.
  3. Related Rules: Companies (Registration Offices and Fees) Rules, 2014 for understanding applicable fees for KYC filings.
  4. Government Notification: Press Release from Press Information Bureau (PIB) on “Year-end review 2025: Ministry of Corporate Affairs” dated 1st January 2026, explaining the rationale and objectives of the amendment.
  5. Official MCA Portal: mca.gov.in – for accessing Form DIR-3 KYC Web and filing KYC online.

All these documents and notifications are available on the official MCA website and can be accessed for verification and detailed implementation guidance.

Conclusion

The Director KYC Amendment 2025, effective from 31st March 2026, represents a significant reform in corporate governance compliance. By shifting from annual to triennial KYC filing, the MCA has recognized that business-friendly regulations can coexist with effective regulatory oversight.

For company directors, this amendment is welcome relief from annual compliance burden. However, it’s crucial to remember that:

  1. Triennial filing doesn’t mean forgotten compliance—directors must mark their filing deadlines (30th June of every third year)
  2. Event-based reporting remains mandatory for any change in personal information
  3. Non-compliance can still result in DIN deactivation and loss of directorial rights
  4. Proper record-keeping of all filings is essential

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