MCA Replaces Annual KYC Requirements

• 02 Jan 2026
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Following an examination by the Ministry of Corporate Affairs, the annual KYC requirement for directors in companies, as outlined in rule 12A of the Companies Appointment & Qualification of Directors Rules 2014, has been reviewed. This review incorporated recommendations from the High Level Committee on Non-Financial Regulatory Reforms (HLC-NFRR) as well as feedback from various stakeholders. 

In consultation with the concerned Ministries/Departments, the relevant rule has been amended by the Ministry of Corporate Affairs. Pursuant to the amendment in rules notified on 31 December 2025 (to come into force from 31 March 2026), a simpler KYC intimation once in every three years will become mandatory, replacing annual KYC filing requirement.

The revised simpler KYC form can be used for several purposes, such as (i) KYC compliance, (ii) mobile number updation, (iii) email address updation, (iv) residential address updation, and (v) DIN re-activation.

The verification process through digital signature by the DIN holder or director as well as the certification also through digital signature by the professional will only be required when the KYC Form is submitted for updating mobile numbers, email addresses or residential addresses. This amendment aims to significantly ease compliance for directors in all companies in India. 

All directors who have completed their KYC to date come under the new provisions. Their next KYC filing will be due by 30 June 2028. Directors who have not yet submitted their KYC Form may still have their DINs reactivated according to the existing provisions until 31 March 2026. 

The Gazette Notification No. G.S.R 943 (E) dated 31 December 2025 regarding this matter is available on the Ministry of Corporate Affairs website (www.mca.gov.in).

Source: Press Information Bureau (PIB)