Australian Business Registry Services (ABRS) has introduced Director Identification Number (DIN) for company directors to verify their identity. Whatsoever company or organisation you own, all directors of a company, registered Australian body, a registered foreign company or Aboriginal and Torres Strait Islander corporation will need a director ID.
A director identification number (Director ID or DIN) is a 15-digit unique identifier given to a director as part of a new statutory requirement to prevent the use of false or fraudulent director identities.
Directors will only have one director ID. They’ll keep it forever even if they change company, stop being a director, change their name, move interstate or overseas.
Why You Need A Director ID?
All directors are required by law to verify their identity with the ABRS before receiving a director ID. This plays a significant role in:
- preventing the use of false or fraudulent director identities
- making it easier to trace directors’ relationships with companies
- identifying and eliminating director involvement in unlawful activity
The DIN is created to promote good corporate conduct and penalise the directors’ involvement in illegal activity.
When You Can Apply?
- Existing directors have to apply until 30 November 2022.
- New directors appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of their appointment.
- Intending directors appointed after 5 April 2022 must apply before being appointed.
If you’re a sole trader, you won’t need a director ID. The entire process from applying to getting IDs will be handled by The Australian Business Registry Services (ABRS), whereas ASIC is responsible for enforcing director ID offences.
How You Can Apply?
You need to apply for your director ID yourself. The three options available for applying are:
- use your myGovID to log on and fill out the application
- complete the application over the phone
- complete a paper application
Once you have received your DIN, you should provide it to the company or CATSI Act corporation record-holder. This could be a company secretary, another director, contact person or an authorised agent of the company.
Though no one can apply for you or on your behalf, an authorised tax, BAS or ASIC agent can help you understand the application requirement. All Australian companies should make sure their directors are aware of this new regime and must apply for DIN on time. If you are in need of professional guidance, our tax accountants at KPG Taxation are here to help.