Have you applied for a Director Identification Number yet? Hop to it!

The government is phasing in a requirement that all new and existing company directors obtain a unique Director Identification Number (DIN). Failure to comply with the requirement may result in a fine, or civil and criminal penalties, so it is very important that all company directors ensure they do not delay.

WHAT IS A DIN?

All directors of Australian companies will require an individual DIN, regardless of how many companies they are involved with. The DIN will be a unique 15 digit identifier. It will be searchable on the Australian Business Registry Services (ABRS) to easily show related companies and to enable tracing of directors across failed companies. This will make it easier to identify fraudulent phoenix companies (when a new company is registered with substantially the same form as a deregistered company, usually in order to defeat creditors).

Directors will only ever have one DIN, which they will keep forever regardless of whether they change companies, stop being a director, change names or move interstate or overseas. Applying for more than 1 DIN is an offence.

WHO NEEDS TO APPLY?

You need to apply for a DIN if you are a director of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation. Each director must apply and verify their identity themselves – no one else can apply on your behalf.

You will not need a DIN if you are a company secretary but not director, if you are running a business as a sole trader or partnership, or you are an officer of an unincorporated association, cooperative or incorporated association established under state or territory legislation (unless the organisation is also a registered Australian body).

WHEN MUST I APPLY?

When you need to apply will depend on when you became a director.

• Please note, the timeframe is different for directors appointed under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).

Failure to apply for a DIN within the prescribed timeframe may result in a fine, or civil or criminal penalties being imposed.

Penalties will also apply for intentionally applying for more than 1 DIN or providing a false DIN (including for non-directors actively involved in those actions).

HOW CAN I OBTAIN A DIN?

Online – You will need to obtain a myGovID and then apply for a DIN on the Australian Business Registry Services website. The application is free. Directors will need to verify their identity with prescribed documents. Have your Tax File Number, residential address and identification documents ready at the time of applying to streamline the process.

You can also apply by phone or by paper application.

The ARBS can provide assistance with lodging your application. See their website or call on 13 62 50.

Directors, do not delay in obtaining your Director Identification Number in order to avoid a fine or worse.