MCA Eases Compliance Norms, Company Directors To File KYC Once Every Three Years

2026-01-02 02:10:27

(MENAFN- KNN India) New Delhi, Jan 2 (KNN) The Centre has relaxed compliance norms for directors of private companies to simplify business regulations. Under a notification from the Ministry of Corporate Affairs (MCA), company directors are now required to file their Know Your Customer (KYC) information once every three years instead of annually.

Timely Update of Personal Information

If a director's personal details, such as phone number, email, or residential address, change, the updates must be submitted within 30 days of the change, reported BS.

“Every individual who holds a Director Identification Number as on 31st March of the financial year shall 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,” the MCA notification dated December 31, 2025, stated.

The MCA said the changes follow recommendations from the High-Level Committee on Non-Financial Regulatory Reforms and suggestions from stakeholders in consultation with concerned ministries.

“This amendment is aimed at providing significant ease of compliance to directors in all companies,” the ministry added.

Streamlined Closure for Government Companies

The MCA has introduced easier procedures for shutting down government companies under Section 248(2) of the Companies Act, 2013.

Earlier, an indemnity bond was required from directors appointed or nominated by the central or state government. Under the amended rules, the bond can now be provided by an authorised representative, not below the rank of Under Secretary, on behalf of the company.

Faster Removal from Company Registers

“This amendment is aimed at faster closure of government companies which are eligible to apply for removal of their names from the register of companies,” the MCA said.

The changes are expected to reduce administrative delays and make it easier for the government to wind up inactive or ailing companies.

(KNN Bureau)

MENAFN02012026000155011030ID1110548720

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.