New ID numbers now compulsory for company directors

All company directors – including those linked to Self-Managed Super Funds – must now obtain Director Identification Numbers under a new requirement from the Australian Business Registry Services (ABRS).

Directors who were appointed before 31 October 2021 have one year to apply to the ABRS for their Director Identification Number – also known as a Director ID or DIN, while directors appointed after 1 November 2021 must apply within 28 days of their appointment. The Director ID is a unique 15-digit number that verifies the identity of an individual company director. The number stays with a director for life, even if they stop being a director, change companies, change their name or move interstate or overseas. Directors receive a single ID number, even if they are a director of multiple companies. The new mandatory requirement aims to combat fraud by preventing the use of false director identities, stopping unlawful activity such as phoenixing and making it easier to trace directors’ relationships with companies over time. Who needs a Director ID? You need a Director ID if you’re a director (or alternate director) of a:

• company

• Aboriginal and Torres Strait Islander corporation

• corporate trustee, e.g. of a self-managed super fund

• charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation

• registered Australian body, e.g. an incorporated association that is registered with the Australian Securities and Investments Commission and trades outside the state or territory in which it is incorporated

• foreign company registered with ASIC and carrying on business in Australia.

When to apply for a Director ID

• If you became a director on or before 31 October 2021, you must apply before 30 November 2022.

• If you become a director between 1 November 2021 and 4 April 2022, you must apply within 28 days of your appointment.

• If you become a director from 5 April 2022, you must apply before your appointment.

How to apply for a Director ID Go to the ABRS website. Applying for a Director ID is free. Directors must apply personally, as they need to verify their identity. No other person can apply on a director’s behalf. You can apply online, over the phone or using a paper form. The fastest way to receive your Director ID is online, following a three-step process that begins with setting up your mygovID using the app (not the same as your mygov account). Read more about how to apply on the ABRS website. Need help? Please visit the ABRS website, contact the ABRS, visit the ATO website or ask your accountant for assistance.