DIR-2 Form: Consent to act as Director of a Company

DIR-2 is a compulsory consent letter under the Companies Act, 2013, in India. This document is essential for an individual to act as the director of a company. The Ministry of Corporate Affairs (MCA) advised it. Thus, this declaration specifies the willingness of a director. The document acts as a crucial declaration of eligibility and non-disqualification. You can submit this declaration on the MCA portal. In this blog, you will get guidance on the DIR-2 form.

What is DIR-2?

DIR-2 means a form. It is an essential document for an individual. This document helps them to become a director of a company in India. In other words, it is also known as a declaration and a consent. It is generally stated as per the Ministry of Corporate Affairs (MCA). It is also specified in Section 152(5) and Rule 8 of the Companies (Appointment and Qualification of Directors) Rules, 2014. This form contains details of non-disqualification. The details can include:

a) DIN (Director Identification Number) or PAN (Permanent Account Number)

b) Name

c) Address

d) Contact Details

e) Occupation details of each director of the company, etc.

Key Components of the DIR-2 Form

Listed below are the key components:

1) Header

The header means title. The title specified as a "Form DIR-2: Consent to Act as a director".  

2) Director Details

The details of the directors can include:

a) Full Name

b) Father’s Name

c) DIN (Director Identification Number) or PAN (Permanent Account Number)

d) Complete Residential Address

e) Email ID

g) Mobile Number

h) Occupation

i) Date of Birth

3) Company Information

Name of the Company where the director is being appointed.

4) Declaration

A declaration means the statement. It assures the disqualification of the director to hold office under the Companies Act, 2013.

5) Directorship Details

This means a list of other companies where the person is already a Director or Managing Director. They can also be a CEO, CFO, or Manager.

6) Signatures

It contains a signature with date of the proposed director.

7) Attachments

This can include proof of residential address and identity

Importance of the Form DIR-2

Here is the importance:

Legal Consent and Compliance

No individual can be made a director unless they give their written agreement. They must give the agreement by using Form DIR-2.

National Security Scrutiny

Directors from countries that share a land border with India need to get a security clearance. The land borders can include China and Pakistan. They can get it from the Ministry of Home Affairs. They must also include it with their form. This is stated as per the 2022 amendments.

Declaration of Eligibility

The form contains an essential statement. The declaration says that the appointee is qualified under Section 164. It also states that the person has not been found convicted of any business fraud or crimes in the last five years

Mandatory for Incorporation

It is considered as a compulsory attachment for the SPICe+ (INC-32) web form. This web form is used for new company’s registration.

Regulatory Filing

The existing company needs to file it along with Form DIR-12. It can be filed with the Registrar of Companies (ROC). This must be done within 30 days of the appointment.

Data Accuracy

It keeps important details. The important details can include:

a) DIN (Director Identification Number)

b) PAN

c) Address

d) Occupation

Thus, these details act as the primary record for the MCA's registry.

Documents Required to Submit the DIR-2 Form

Here are the documents:

a) Signed Form DIR-2 (formal consent letter)

b) A copy of the PAN card for Indian nationals

c) Director Identification Number (DIN) of the proposed director

d) Proof of Identity: It includes a PAN card, Voter ID, Driving License, or Passport

e) Proof of Address

It can include Aadhaar card, utility bills (electricity/telephone), or bank statement (not older than 2 months).

f) A Passport-Size Photograph

g) A Digital Signature Certificate (DSC)

h) Additional documents for Foreign Nationals

A passport is required. In case you are coming from a country that shares a land border with India, you also need a security clearance from the Ministry of Home Affairs.

How to File Form DIR-2?

Here is the step-by-step process:

Step 1: Log In

In the first step, you must log in to the official MCA portal. You can log in by using your valid credentials.

Step 2: Navigate

This step allows you to go to the SPICe+ form section.

Step 3: Attach

You must click on the "Attach" option. You will find this option next to Declaration by first subscribers and directors.

Step 4: Upload

Next, you need to submit the duly signed DIR-2 document with the help of the directors.

Step 5: Checking

You must confirm that you have given all the required documents.

Step 6: Submit

This is the final step of filing this form. You must submit the Part B form and the required documents.

Conclusion

Filing DIR-2 is an essential step for individuals under the Companies Act, 2013. You can file this form from the official MCA portal. This helps individuals who want to become a director of a company in India. It acts as a critical declaration of eligibility and commitment. So, it is important to file this form to avoid issues.

FAQ

Q1. What is DIR-2?

DIR-2 is a form. It is a declaration for individuals. Individuals with this form can act as a director of a company in India. It also refers to the “Consent to act as a Director of a Company”. An individual will be able to become a director of a company in India.

Q2. Where can I file this Consent to act as a Director?

You can file this form on the official Ministry of Corporate Affairs (MCA) portal.

Q3. Is it compulsory to file the DIR-2 form?

Yes, it is compulsory to file it. This helps an individual to be appointed as a director in a company under the Companies Act, 2013.

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Online Legal India is a digital platform. If you require legal assistance, we strongly recommend consulting a qualified lawyer or law firm.