Have you got your director ID number?
The final deadline for obtaining a director identification number (DIN) for directors is fast approaching. If you’re a director of a company registered under the Corporations Act 2001 and you were appointed on or before 31 October 2021, you must have applied for a DIN by 30 November 2022.
Key points
Directors appointed after 31 October 2021 should already have a DIN
Directors appointed on or before 31 October 2021 have until 30 November to apply for a DIN
This requirement applies to directors and alternate directors
This requirement extends to Australian companies as well as registered Australian bodies and registered foreign companies under the Corporations Act 2001
Failure to comply with this requirement is a criminal offence
Background
The DIN scheme has been implemented to deter and penalise phoenix activity and to help prevent the use of fictitious director identities.
A DIN will be unique to each individual director and will interface with other government agencies and databases to allow regulators to map the relationships between individuals and entities or other people over time.
Deadlines
As noted above, directors appointed on or before 31 October 2021 have until 30 November 2022 to apply for a DIN and directors appointed after 31 October 2021 should already have a DIN.
This includes any director who was a director or alternate director on or before 31 October 2021 and remained so appointed on 1 November 2021. The requirement will still apply even if:
the company was or is in external administration or being voluntarily deregistered, or
the person has since resigned as a director.
Individuals who first become a director at any time after 5 April 2022 must apply for a DIN before being appointed as a director.
How to apply
Directors must apply for their DIN through Australian Business Registry Services (ABRS). The application must be completed by a director themselves, because the director needs to verify their identity as part of the process.
The application process will vary depending on whether the director resides in Australia or overseas. Broadly speaking:
directors residing in Australia can generally apply online via the ABRS website using the myGovID app to verify their identity
directors residing outside Australia must apply on paper and submit certified copies of relevant identification documents and certified translations into English (where required).
Detailed information on this process can be found here.
Act now to avoid penalties
Directors who fail to comply with the DIN requirements before the relevant deadline risk facing civil penalties of up to A$1.11 million and criminal penalties of up to A$13,320. In addition, companies can also be liable for civil penalties if they are “involved” in the director’s contravention.