Summary of Director Identification Number Regime

This month the new Director Identification Number (DIN) regime commenced. It is critical for Directors to apply within the stipulated timeframes, as failure to do so is a criminal offence. Individuals only need to apply for a DIN once, even if they choose to move companies or roles.  Make sure you understand your obligations.

 

The legislation

In June 2020, the Australian Government introduced the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 (Cth) (‘the Amendment Act’).

 

The Amendment Act includes a new regime found at Part 9.1A of the Corporations Act 2001 (Cth) (‘the Corporations Act’), which requires all company directors, or anyone who intends to become a director, to verify their identity and obtain a Director Identification Number (DIN).

 

What is a DIN?

A DIN is a 15-digit unique identifier given to a director after verifying their identity with the Australian Business Registry Services (ABRS).

 

The main objectives of the identity verification regime are to prevent the use of false or fraudulent director identities and to identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.

 

Who required a DIN and from when?

All directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation will need a DIN.

 

When a director must apply depends on their appointment as director.

 

If a person is or becomes a director of a company, registered Australian body or registered foreign company which is governed by the Corporations Act:

If a person is or becomes a director of a company which is governed by the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth):

 

Note: ASIC is responsible for enforcing director ID offences set out in the Corporations Act. It is a criminal offence to not apply on time.

 

How to apply for a DIN

Applications for director IDs are free of charge and must be personally applied for. The application portal has been operational since 1 November 2021.

 

The fastest way to apply is online via the ABRS website and the myGovID app which can be set up via this link.

 

Directors outside of Australia who cannot get a myGovID are directed to apply with a paper form.

 

In order to apply, a person will need to provide information including the following:

  1. their tax file number (TFN);
  2. their residential address as held by the ATO; and
  3. information from two documents to verify their identity (including bank account details, Australian passport, driver’s license and a dividend statement).

 

Alternatively, a person can apply by phone or with a paper form.

 

If via the phone a person can call:

  1. 13 62 50 if in Australia; or
  2. +61 2 6216 3440 if calling from overseas.

 

If applying via paper form:

  1. the person must use the form: Application for a director identification number (NAT75329, PDF, 306KB).

 

Both of the methods in this point 11 still require the applicant to verify their identity and provide the relevant information as required by the online method.

 

More information about the new director identification number regime can be found on the ABRS website.

 

If you are unsure as to whether you require a Director Identification Number or have any other query, please get in touch with any member of the Commercial Team to discuss.