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Director ID Registration (DIN)
Anthony de Jager • November 8, 2021
Director ID Registration
From 1 November 2021, Australian Company Directors are required by law to verify their identity with the Australian Business Registry Service (ABRS) and obtain a Director ID.
What is a Director ID?
A Director Identification number (Director ID) is a unique 15-digit identifier you will keep forever. It will help to prevent the use of false or fraudulent director identities.
Directors will only ever have one director ID. They'll keep it forever even if they:
- change companies
- stop being a director
- change their name
- move interstate or overseas
Existing Directors need to apply for their Director ID by 31 October 2022.
Why you need a Director ID
Shareholders, employees, creditors, consumers, external administrators, and regulators are entitled to know the names and certain details of the directors of a company.
All directors are required by law to verify their identity with us before receiving a director ID. This is important because it will help 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.
Illegal phoenix activity is when a company is liquidated, wound up, or abandoned to avoid paying its debts. A new company is then started to continue the same business activities without the debt. When this happens:
- employees miss out on wages, superannuation, and entitlements
- suppliers or sub-contractors are left unpaid
- other businesses are put at a competitive disadvantage the community misses out on revenue that could have contributed to community services.?
Apply for your Director ID
To apply for your Director ID, you will need to do the following:
Step 1: If you haven't already, register for a myGovID with a Standard or Strong identity strength.
We would recommend that you apply for myGovID by phone.
You can apply by phone if you have:
- an Australian tax file number (TFN)
- the information you need to verify your identity, as listed below
If you are in Australia, phone 13 62 50 between 8.00 am and 6.00 pm Monday to Friday.
Step 2: Gather the following documents to verify your identity:
- Your TFN (an individual Australian tax file number)
- Your residential address, as recorded by the ATO
- Be prepared to answer two questions from ANY of the following options based on details/records available to ABRS. These might include:
Step 3: Complete your application:
Once you have a myGovID with a Standard or Strong identity strength and information to verify your identity, you can log in and apply for your Director ID. The application process should take less than 5 minutes through the myGovID app.
How to Manage your Director ID
If you have a myGovID, you can log in to ABRS online to view your Director ID or update your details whenever you need to:
- check your Director ID number and status, including when it was issued;
- view things to do, actions in progress and past activity; and
- edit your profile preferences and some of your personal details.
- applying for a Director ID within the relevant timeframe for your situation;
- applying for a Director ID when directed by the Registrar to do so;
- not applying for more than one Director ID (unless directed by the Registrar to do so);
- not misrepresenting your Director ID to a Commonwealth body, company, registered Australian body, or Aboriginal and Torres Strait Islander corporation; and
- not being involved in a breach of the above Director ID obligations.
If you don't meet your obligations:
There may be civil or criminal penalties, and you may be issued with an infringement notice.
We hope this article has been of assistance to you.
Warm wishes,
The Wrights Chartered Accountants Team
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