If you want to become a director of a company, or already are one, you will need to apply for a director identification number [DIN] within the time requirements to avoid copping a hefty fine for non-compliance.
All directors will be required by law to verify their identify to assist in preventing false DINs, 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 DIN and how does it work?
A DIN is a 15-digit unique identifying code given to every director [or someone who intends to become a director]. You will only need one DIN, no matter how many companies you are a director of.
Once you receive your DIN you will need to provide this number each time you accept the role as director.
It is important to note that for now, DINs will not be searchable for the public.
2. Do you need a DIN?
You will need to apply for a DIN 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 DIN 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 will not need a DIN if you are a company secretary [unless you are also a director], acting as an external administrator of a company, running a business as a sole trader or partnership, referred to as ‘director’ but have not been appointed as director under the Corporation Act, a director of a registered charity that is not registered with ASIC or an officer of an unincorporated association [unless registered as an Australian body].
3. How do you apply?
In order to obtain a DIN 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 DIN will be provided to you.
4. When do I need to apply by?
When you must apply for your DIN 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, and dates and information differs in relation to the Corporations (Aboriginal and Torres Strait Islander) Act 2006.
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 [and businessDEPOT is listed as the registered office before 31 October 2021], we will reach out to help you with your DIN application.
It is important you are aware of your requirements in relation to applying for a DIN as civil and criminal penalties will apply if individuals fail to apply within the prescribed timeframes, intentionally apply for more than one DIN or provide a false DIN.
Whether you’re a client of businessDEPOT or not, if you would like further information or help obtaining your DIN, please reach out to email@example.com or the accounting team at firstname.lastname@example.org.
General Advice Disclaimer
Information provided on this website is general in nature and does not constitute financial or legal advice. Every effort has been made to ensure that the information provided is accurate, but information may become outdated as legislation and new government announcements are made. Individuals must not rely on this information to make a financial, investment or legal decision as it does not take into account their personal circumstance. Before making any decision, we recommend you consult a licensed adviser or legal practitioner to take into account your particular objectives, circumstances and individual needs.