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MCA Replaces Annual Director KYC With Once-in-Three-Year Filing

RR Team, January 2, 2026January 2, 2026
In a major compliance reform aimed at easing regulatory burden, the Ministry of Corporate Affairs (MCA) has replaced the annual Know Your Customer (KYC) filing requirement for company directors with a simplified KYC intimation once every three years. The move, notified on December 31, 2025, is expected to significantly reduce repetitive filings and streamline corporate governance procedures under the Companies Act, 2013.

The amended rules will come into effect from March 31, 2026, and apply to directors registered under the Companies (Appointment and Qualification of Directors) Rules, 2014. The decision follows a detailed review by the ministry, recommendations of the High-Level Committee on Non-Financial Regulatory Reforms (HLC-NFRR), and extensive consultations with stakeholders.

What Has Changed in Director KYC Rules

Under the earlier framework, directors were required to file their KYC details annually under Rule 12A. This requirement has now been replaced with a triennial KYC filing system, significantly reducing compliance frequency while retaining essential verification safeguards.

The revised KYC form is more versatile and can be used not only for periodic KYC compliance but also for updating mobile numbers, email addresses, residential addresses, and for reactivation of Director Identification Numbers (DINs).

When Verification and Certification Are Required

According to the amended provisions, digital signature-based verification by the director and certification by a professional will be mandatory only when the KYC form is used for updating key contact details such as mobile number, email address, or residential address.

For routine KYC compliance without any changes in personal details, directors will not be required to undergo repeated professional certification, thereby saving time and costs.

Who Benefits From the New System

All directors who have already completed their KYC filings up to date are automatically covered under the new provisions. Their next KYC filing will now be due on or before June 30, 2028.

Directors who have not yet completed their KYC filings will continue to have the option to reactivate their DINs under existing provisions until March 31, 2026.

Objective: Ease of Doing Business

The MCA stated that the amendment is part of a broader effort to reduce unnecessary regulatory friction while maintaining transparency and accountability. The reform aligns with the government’s ease-of-doing-business agenda and seeks to make compliance more proportionate and risk-based.

By shifting from annual to triennial filings, the ministry aims to balance governance oversight with practical efficiency for India’s rapidly expanding corporate sector.

Official Notification and Further Details

The amendment has been formally notified through Gazette Notification No. G.S.R. 943(E) dated December 31, 2025. The notification is available on the official MCA website at
www.mca.gov.in.

News #BusinessReforms#CompaniesAct2013#CorporateAffairs#CorporateCompliance#DIN#DirectorKYC#EaseOfDoingBusiness#GovernanceReforms#IndianCompanies#KYCReform#MCA#RegulatoryReform#StartupIndia

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