Corporate Affairs Ministry Simplifies KYC Norms for Directors

The Corporate Affairs Ministry has relaxed KYC compliance for company directors, shifting from an annual filing to a once-every-three-years requirement under the Companies Act, 2013. This change, effective March 31, 2026, is part of a broader amendment aimed at easing compliance burdens on directors.

The Corporate Affairs Ministry has significantly reduced KYC compliance requirements for company directors by replacing the annual mandate with a streamlined once-every-three-years filing under the Companies Act, 2013.

This regulatory adjustment comes after a comprehensive review of Rule 12A of the Companies (Appointment & Qualification of Directors) Rules, 2014, following guidance from the High Level Committee on Non-Financial Regulatory Reforms and stakeholder feedback.

The new guidelines, which will be implemented on March 31, 2026, aim to simplify the compliance process, allowing directors to submit an abridged KYC form triennially for maintaining or updating personal credentials.