Directors required to apply for their Identification Numbers Posted on November 14, 2021
The Federal Government has this month launched its requirement of, and application process for, a Director Identification Number (DIN). Our team welcomes this development as an added layer of identity security for business directors in our digital world. Applications opened on 1 November and Directors must apply personally.
Directors are increasingly vulnerable to identity fraud and illegal activity. The DIN will simplify business operations and identification and enable regulators to more efficiently trace directors’ relationships with companies over time. This added layer of transparency will improve business reliability and trust.
Once issued, the unique 15-digit number is linked to a director for life and through movement between different roles, markets, companies and ventures.
To apply, directors can log into ABRS online using the myGovID app. The director must personally register for their DIN, a representative cannot complete the process on behalf of a Director.
The online application form is straightforward with valid proof of identity, such as a tax file number. It is free to apply and available to directors within Australia and overseas. Applications are available by phone and by paper for those who need it.
Those who must register include any individual who is a director or acting as an alternate director for a company, for an Aboriginal and Torres Strait Islander corporation, for a charity/not-for-profit organisation, or for a registered Australian body or foreign company registered with ASIC and carrying on business in Australia. This includes directors of an SMSF or a limited recourse borrowing (LRBA) corporate trustee.
You do not need a DIN if you are running a business as a sole trader or partnership, are referred to as a ‘director’ in your job title but have not been appointed as a director under the Corporations Act or the CATSI Act, are a director of a registered charity with an organisation type that is not registered with ASIC to operate throughout Australia.
All existing directors appointed prior to 31 October 2021 have a deadline of 30 November 2022 to apply for a DIN. Directors appointed between 1 November 2021 and 4 April 2022 will have 28 days to apply for their DIN. From 5 April 2022, Directors must have a DIN before they are appointed. Fines will apply for late registration.
We appreciate that keeping up with the fast and furious changes for business directors at the moment can be distracting and overwhelming, so we are working with many business owners to navigate the business changes, risks and opportunities for growth. If you’d like to have a complimentary discovery chat about your business, contact us.
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