Director Identification Number - What, Why, Who, When and How

What?

A director identification number (Director ID) is a unique 15-digit number that identifies an individual as a director of an Australian company, registered Australian body or Australian registered foreign company.

All directors need to apply for their own Director ID and they will keep it forever even if they:

• change companies;
• stop being a director;
• change their name; or
• move interstate or overseas.

Why?

The requirement for Director IDs was introduced by the Australian government to:

• prevent the use of false or fraudulent director identities;
• make it easier for external administrators and regulators to trace directors’ relationships with companies over time; and
• identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity (which is where a company is liquidated, wound up or abandoned to avoid paying its debts and then a new company is started to continue the same business activities without the debt, leaving employees and suppliers unpaid).

Who?

You need a Director ID if you are a director of a:

• company;
• Aboriginal and Torres Strait Islander corporation;
• corporate trustee, for example, 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, for example, an incorporated association that is registered with the Australian Securities and Investments Commission (ASIC) and trades outside the state or territory in which it is incorporated; or
• foreign company registered with ASIC and carrying on business in Australia (regardless of where you live).

You do not need a Director ID if you are:

• a company secretary but not a director;
• acting as an external administrator of a company;
• running a business as a sole trader or partnership;
• referred to as a ‘director’ in your job title but have not been appointed as a director under the Corporations Act 2001 (Cth) (Corporations Act) or the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth) (CATSI Act);
• a director of a registered charity with an organisation type that is not registered with ASIC or the Office of the Registrar of Indigenous Corporations to operate throughout Australia; or
• 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?

You can apply for a Director ID now.

If you plan to become a director, you can apply for a Director ID before you are appointed as a director.

For directors under the Corporations Act

When you are required to apply for a Director ID depends on the date you become a director, as follows:

When you became a director	When you must apply for a Director ID
On or before 31 October 2021	By 30 November 2022
Between 1 November 2021 and 4 April 2022	Within 28 days of appointment
From 5 April 2022	Before appointment

For directors under the CATSI Act

When you are required to apply for a Director ID depends on the date you become a director, as follows:

When you became a director	When you must apply for a Director ID
On or before 31 October 2022	By 30 November 2023
From 1 November 2022	Before appointment

Criminal offence

ASIC is responsible for enforcing Director ID offences set out in the Corporations Act.  It is a criminal offence if you do not apply on time.

ASIC’s enforcement role covers the following Director ID offences under the Corporations Act:

Offence	Penalty
Failure to have a Director ID when required to do so	$13,200 (criminal); $1,100,000 (civil)
Failure to apply for a Director ID when directed by the Registrar of the Australian Business Registry Services	$13,200 (criminal); $1,100,000 (civil)
Applying for multiple Director IDs	$26,640, or, 1 year imprisonment or both (criminal); $1,100,000 (civil)
Misrepresenting Director ID	$26,640, or, 1 year imprisonment or both (criminal); $1,100,000 (civil)

How?

The Australian Business Registry Services (ABRS) is responsible for administering the Director ID initiative.  The ABRS was established to streamline how people register, view and maintain their business information with the Australian government.

It is free to apply for a Director ID from ABRS (https://www.abrs.gov.au/director-identification-number/apply-director-identification-number).

The following are the various Director ID application options:

Method	Requirements
Online	- This is the fastest way - You use the myGovID app to log in to the ABRS online application portal - Your identity is verified online as part of the application process
By phone	- Can be used if you live in Australia - Call ABRS on 13 62 50 to apply - You will be asked to verify your identity over the phone
Paper Application	- Can be used if you currently reside outside Australia - A paper application form is available from ABRS for this purpose - In addition to completing the form, you will also need to provide certified copies of your documents that verify your identify

For more information, please contact any member of the Sierra Legal team, whose contact details can be found here.

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