From today, anyone who holds a current Director role, or who is planning on becoming a Director, must be aware of their obligations to obtain a Director Identification Number (DIN). Holding a DIN is mandatory, but there are some interim grace periods to apply for one (outlined below).
What is a Director Identification Number?
A DIN is a 15-digit number that Directors of companies will need to verify their identity.
The DIN regime aims to improve corporate conduct by providing greater transparency of a Director’s history and involvement in companies. This will be particularly important in deterring/identifying Director involvement in ‘phoenixing’, which occurs when a company is intentionally stripped of its assets and liquidated – with no assets to its name to pay outstanding debts – then restarted under a different company.
Who needs a DIN?
All Directors or alternative Directors of:
- Australian or foreign companies under the Corporations Act 2001;
- Incorporated associations operating outside of the State or Territory in which they are registered;
- Aboriginal and Torres Strait Islander corporations registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006.
What is the process of applying for a DIN?
You can apply for a DIN on the Australian Business Registry Services website (ABRS). You will need a myGovID to submit an application, which allows you to access various government services online. It is different to myGov and requires you to download the app. Alternatively, you can apply by phone or hard copy. Identification details will need to be provided as part of the process.
Foreign resident Directors who hold Australian documentation necessary for identification (for example, an Australian passport) may be able to complete the process online. If you no longer hold these, you will need to submit a paper application certified by a Public Notary or employee of an Australian embassy, high commission or consulate.
You must personally apply for your DIN, rather than having someone do so on your behalf. You will receive it once your identity has been confirmed by the ABRS and you should supply it to your company or corporation.
What timing do I need to know?
Directors appointed under the Corporations Act must apply for a DIN under the following timings:
- Existing Directors (appointed on/before 31 October 2021) have until 30 November 2022;
- Directors who are appointed from today through to 4 April 2022 must apply within 28 days of their appointment;
- Directors appointed from 5 April 2022 must apply for a DIN prior to their appointment.
Directors appointed under the Corporations (Aboriginal and Torres Strait Islander) Act must apply for a DIN under the following timeframes:
- Existing Directors (appointed on/before 31 October 2021) have until 30 November 2023;
- Directors appointed from 1 November 2021 must apply for a DIN prior to their appointment.
How much will it cost?
There is no cost to apply for a DIN.
How often do I need to do it?
Applying for a DIN only needs to be done once. DINs don’t expire so it will remain linked to you indefinitely – even if you leave/start with a company, stop being a Director, change your name or move overseas. Penalties can apply if you hold a DIN and apply for another one.
What happens if I don’t apply for a DIN?
If you fail to meet your obligations within the required timeframes you could be issued with an infringement notice or potentially expose yourself to civil or criminal penalties. For example, directors who fail to apply for a DIN will be committing an offence of strict liability which carries a maximum civil penalty of the greater of A$1,050,000 or three times the benefit derived or detriment avoided because of the contravention and a maximum criminal penalty of A$12,600.
If you have any concerns regarding applying for your DIN, please contact me on 0402 136 083.
