The Ministry of Corporate Affairs (MCA) has announced a key relaxation in Know Your Customer (KYC) compliance requirements for company directors, marking a significant step towards reducing routine regulatory burden.

Under the revised norms, directors will now be required to complete KYC verification once every three years, instead of the earlier annual filing mandate, provided there are no changes in their personal or identification details. Previously, directors were required to submit DIR-3 KYC on a yearly basis.

The move is intended to simplify corporate compliance processes while ensuring continued regulatory oversight. By cutting down repetitive filings, the government aims to lower administrative costs for companies, especially small and medium enterprises, and improve overall efficiency in corporate governance.

The MCA has clarified that directors must still update their KYC details immediately in case of any changes related to address, mobile number, email ID, or identity documents.

Industry stakeholders have welcomed the decision, viewing it as part of the government’s broader push towards compliance rationalisation, digitisation, and ease of doing business in India.

This reform is expected to provide practical relief to companies, professionals, and directors managing statutory compliance obligations.