If you want to become a director of a company, or already are one, you will need to apply for a director identification number [director ID] within the time requirements to avoid copping a hefty fine for non-compliance. 

All directors will be required by law to verify their identity to assist in preventing false director IDs, eliminating unlawful activity and assisting external administrators with companies over time.  

So, what is this incoming implementation for directors, when should you apply, and do you need to apply in all circumstances? The following blog will unpack the newly introduced director requirements. 

 

1. what is a director ID and how does it work? 

A director ID is a 15-digit unique identifying code given to every director [or someone who intends to become a director]. You will only need one director ID, no matter how many companies you are a director of.  

Once you receive your director ID you will need to provide this number each time you accept the role as director. 

It is important to note that for now, director IDs will not be searchable for the public.  

 

2. do you need a director ID? 

You will need to apply for a director ID if you are a director of: 

  • a company, 
  • corporate trustee [for example, a self-managed super fund], 
  • a charity or not-for-profit organisation, 
  • foreign company registered with ASIC carrying on business in Australia, or 
  • a registered Australian body [such as an incorporated association]. 

You will also need to apply for a director ID if you are acting as legal personal representative for someone who is a director. This includes situations of incapacity, death, enduring power of attorneys and overseas absence.  

You may also need to apply for a director ID if you are acting as legal personal representative for someone who is a director. This is, however, dependent on a case-by-case basis and we recommend you seek advice to determine if this applies to you. This also includes situations of incapacity, death, enduring power of attorneys and overseas absence.

 

 3. how do you apply?  

In order to obtain a director ID you may apply through myGovID over the phone or by submitting a paper form. 

Current and future directors must also submit the following documentation in order to be verified: 

  • tax file number,
  • Residential address, and 
  • Information from two documents to verify your identity, such as bank account details, super account details, PAYG summary, dividend statement. 

Once your identity has been verified, your unique director ID will be provided to you. 

For the latest information on how and when you need to apply for your director ID visit our blog here.

 

 4. when do I need to apply by? 

When you must apply for your director ID depends on the date you become a director.  

If you become a director: 

  • On or before 31 October 2021: by 30 November 2022, 
  • Between 1 November 2021 and 4 April 2022: within 28 days of appointment, or 
  • From 4 April 2022: Before appointment and company is registered with ASIC.  

Please note that the above information is in relation to the Corporation Act.

Directors of Aboriginal and TS Islander corporations registered under Corporations (Aboriginal and Torres Strait Islander) Act 2006. (CATSI Act) appointed before 31 October 2022 have until 30 November to verify their identity via myGov ID and apply for a director ID.

If you intend on becoming a Director, you can apply for a director ID up to 12 months prior, but if not linked to a company within 12 months, it will be cancelled and the Director will need to reactivate if required later on.

Failing to apply for a director ID when required imposes substantial penalties [up to $13,200 criminal and $1.1m civil] which is a very expensive mistake you want to avoid!

 

 5. businessDEPOT clients and take away factors 

If you are a businessDEPOT Legal or Accounting client and we are the registered ASIC agent for your company, we are here to help, but unfortunately cannot apply for you..

If you are a Director of a Company that we are the registered ASIC Agent for, please send us your director ID and we will ensure this is linked to your respective companies.

It is important you are aware of your requirements in relation to applying for a director ID as civil and criminal penalties will apply if individuals fail to apply within the prescribed timeframes, intentionally apply for more than one director ID or provide a false director ID. 

Whether you’re a client of businessDEPOT or not, if you would like further information or help obtaining your director ID, please reach out to legal@businessdepot.com.au or the accounting team at oneplace@businessdepot.com.au.  

 

General Advice Disclaimer

The information provided on this website is a brief overview and does not constitute advice, whether financial, accounting, taxation, legal or any other type of advice. We endeavour to ensure that the information provided is accurate however information may become outdated as legislation, policies, regulations and other considerations constantly change. Individuals must not rely on this information to make a financial, investment or legal decision. Please consult with an appropriate professional before making any decision.