1st November 2021 saw the introduction of mandatory director identification numbers (Director ID’s). This new regime is an initiative under the Modernising of Business Registers program and is a legal requirement that is expected to cover more than 2.5 million directors.
Read below to learn more about the introduction of Mandatory Director Identification Numbers (DIN’s or Director ID’s) including:
- What is a Director ID?
- Who is required to have a Director ID?
- What is the purpose of a Director ID?
- How do I attain a Director ID?
What is a Director ID?
A Director ID is given to a director or someone who intends to become a director. It is a 15 digit unique number that’s starts with 036 and ends with an 11 digit number and one ‘check’ digit for error detection. You will only need to apply once for a Director ID and will keep the number forever even if you change companies, cease being a director, change your name or move interstate or overseas.
Who is required to have a Director ID?
You need a Director ID if you’re appointed as a director or an alternate director, who is acting in that compacity of:
- a company, a registered Australian body or a registered foreign company under the Corporations Act 2001 (Corporations Act)
- an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).
It is not only the directors of trading companies that need a Director ID. If you’re a director of a passive investment entity or indeed a corporate trustee (such as of a discretionary trust of a self-managed super fund), you too will need to apply for a Director ID.
What is the purpose of a Director ID?
Director ID’s will assist with compliance by helping regulators identify businesses who are doing something wrong plus keep better track of Directors using fabricated identities. Director ID’s will be a compliance regulator that assists with overcoming issues with data integrity and assist to regulate phoenixing and the illegal activities that arise as a result. They will also support small businesses by keeping out the operators that are breaking the law.
How do I attain a Director ID?
Applications opened on 1st November to attain a Director ID. It is free to apply and the quickest way to apply is online via the ABRS platform at www.abrs.gov.au/director-identification-number
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Disclaimer: The information in this article is general information only.