New Delhi, January 2: In a major step towards reducing regulatory burden and improving ease of compliance, the Ministry of Corporate Affairs (MCA) has replaced the annual Know Your Customer (KYC) filing requirement for company directors with a simplified, once-in-three-years KYC framework under the Companies Act, 2013.
The decision follows a detailed review by the Ministry, recommendations of the High-Level Committee on Non-Financial Regulatory Reforms (HLC-NFRR), and consultations with various stakeholders. The amended provisions under Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014 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 form once every three years instead of annually. The new form can be used for multiple purposes, including KYC compliance, updating mobile number, email address, residential address, and reactivation of Director Identification Number (DIN). Digital verification and professional certification will be required only in cases where personal details such as mobile number, email address, or residential address are updated.
The Ministry clarified that all directors who have already completed their KYC requirements will automatically fall under the new regime, with their next filing due by June 30, 2028. Directors who have not yet completed their KYC may continue to regularise their DINs under existing provisions until March 31, 2026.
The reform is aimed at significantly reducing compliance burden on directors, improving ease of doing business, and streamlining regulatory processes without compromising data integrity. The notification (G.S.R. 943(E) dated December 31, 2025) has been uploaded on the Ministry’s official website.
