You may have heard about a new director registration number if you are a business director. This is known as a Director Identification Number (DIN), and we will explain all you need to know about it.
To combat illegal phoenix operations and enhance the transparency of business directors over time, directors are now obliged to validate their identification and register for a Director Identification Number (director ID). The Modernising Business Registers (MBR) program, a reasonably recent Australian Government initiative, includes DINs.
This article will discuss what you should know about director identification numbers.
What is a DIN, and how does it work?
The DIN is a distinct 15-digit identification number that each business director in Australia will keep forever, similar to a tax filing number. The Director Identification Number (DIN) shall begin with 036 (the three-digit country code for Australia under International Standard ISO 3166) and finish with 14 numbers that are exclusive to the director, including a single "check" digit number.
A person who obtains a DIN has it permanently, regardless of company changes, director modifications, name alterations, interstate or international movements, or name changes. The DIN will assist in locating a director in any organization or location where they hold the office, enabling cross-referencing for anything from everyday search operations and simple document filing to handling insolvencies, frauds, and misconduct.
Who is required to hold a director ID?
Under the Corporations Act 2001, a director ID is necessary if an individual is an eligible officer of:
A company/ business, a registered Australian organization, or a registered overseas company (Corporations Act)
A corporation is recognized as Aboriginal and Torres Strait Islander under the Corporations (Aboriginal and Torres Strait Islander) Act of 2006 (CATSI).
Those who are appointed as Directors are eligible officers.
A substitute director is serving in such a role.
Anyone anticipating becoming an eligible officer within the next year may apply for an ID (if they do not already hold one). Once one has enrolled, they have 12 months to be appointed as an election officer before their ID becomes invalid.
When do directors need to apply?
The director ID application process is now open. The following deadlines must be followed for both new and existing directors to apply:
Corporations Act Directors
Date of Directorship
On or before 31 October 2021 (existing & new directors)
By 30 November 2022
Between 1 Novermber 2021 & 4 April 2022
Within 28 days of the appointment
From 5 April 2022
How to apply for DIN?
Configure your myGovID
Collect your supporting documentation, such as your tax filing number (TFN), residence address, and proof of identity.
Apply by logging into ABRS.
It costs nothing to apply for a director identification number, but you must do it yourself since you have to prove your identity.
When do directors need to use the ID?
The company's record-holder, who might be the company secretary, other directors, or a company-approved agency, has to be given the director ID.
Directors will also be required to provide their ID number to the individuals in charge of keeping the documents of those companies if they are later appointed as directors of any other companies.
Directors must also let the Registrar know if any of the data on their ID has changed.
What else should you do?
A director's removal from the ASIC roll might impact the company's internal governance. Thus, companies must ensure that their present directors get a DIN within the appropriate time frame to avoid fines.
Directors who submit numerous DIN applications or falsely declare their DIN risk up to 12 months in jail. Any other party implicated in the crime is subject to a civil penalty fine as an accomplice.
If you would like help registering your new company, Caboolture Bookkeeping can help you.
Click Here to book an appointment or phone Leisha on 1300 022 422