As part of a new government initiative to prevent the use or false or fraudulent director identities, all directors of a company or those intending to become a director, are required to obtain a Director Identification Number (DIN) by November 30, 2022, or risk incurring penalties. In this article, we outline what is required.
What is a Director ID?
A Director ID is a 15-digit identifier given to a director of a registered company or someone intending to become a director and is a number they will keep forever.
The aim of the Director ID is to:
- prevent the use of false or fraudulent director identities
- make it easier for external administrators and regulators to trace directors' relationships with companies over time
- identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.i
What are the new changes?
All company directors are required to verify their identity online with the Australian Business Registry Services (ABRS) to receive their director ID. This involves providing certified copies of ID documents such as a passport and driver's licence. The Director ID will be kept forever, even if your circumstances changes.
The deadlines for applying for a Director ID will vary depending on when you were appointed as a director. If you became a director either on or before 31 October 2021, you have until Wednesday, 30 November 2022 to apply. Directors appointed from 1 November 2021 should already have applied.
It is important to apply on time as it is a criminal offence if you do not. ASIC is responsible for enforcing director ID offences, as per the Corporations Act 2001.
How do I apply?
For my information about director ID and to apply, visit the ABRS website.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.