Director Identification Numbers are now required for all Australian directors. Directors should take action to obtain their DIN as soon as possible.

Key points

• The Director Identification Number regime commenced in Australia on November 1, 2021. The regime applies to all Australian directors, whether resident or non-resident.
• Most existing directors have until November 2022 to acquire their DIN and notify the ASIC registered entities where they hold office.
• New directors of Australian registered entities have 28 days to make application from their date of appointment.
• DIN is a personal identity application that must be done by the individual.
• Foreign resident directors need notarised identity documents to apply, which will take longer, and should commence the process now.

Background

The long awaited Director Identification Number (DIN) regime introduced in June 2020 launched on November 1, 2021.

The Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 (Cth) provides a new regime to Part 9.1A of the Corporations Act 2001 (Cth), which requires all company directors, or anyone who intends to become a director, to obtain a DIN.

A DIN is a unique 15-digit permanent identifier given to a director, or someone who intends to become a director.

More than 2 million directors are likely required to be transitioned on to the new system by November 2022.

The Australian Business Registry Services (ABRS) is responsible for the implementation and administration of DINs. ASIC is responsible for the enforcement of associated offences.

What’s changed?

The DIN is the first service to be delivered by ABRS and aims to create a single source of trusted and accessible business data in order 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 phoenixing activities.

The original legislation noted the scheme is also meant to protect the privacy of directors by allowing them to be identified on public registers without disclosing information that is currently required and accessible to the public including dates of birth and residential addresses. It is currently unclear whether this will be immediately adopted by ASIC, however we remain of the view that it is an important feature given the ever increasing risks of cyber security and identity theft.

Start the process as soon as possible

If a person became a director or an alternate director of a company or other registered Australian body (which includes an incorporated association registered with ASIC and which trades outside of the state of registration or a foreign company registered with ASIC) which is governed by the Corporations Act 2001 (Cth), the following deadlines apply:

• Appointed on or before October 31, 2021 → DIN Application due by November 30, 2022
• Appointed between November 1, 2021 and April 4, 2022 → Due within 28 days of appointment
• Appointed from April 5, 2022 → Required before appointment

If a person became a director or an alternate director of a company which is governed by the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth) then the dates are extended as follows:

• Appointed on or before October 31, 2021 → DIN Application due by November 30, 2023
• Appointed from November 1, 2022 → Due within 28 days of appointment

Making an application for your DIN

DINs must be applied for personally. There is no cost to apply.

Australian resident directors

For Australian resident directors, the fastest way to obtain a DIN is to apply online on the ABRS website . This service has been live since November 1, 2021.

This will require a myGovID account (which is different from a standard myGov account). myGovID is an app you download to a smart device that allows you to prove who you are and log in to a range of government online services, including myGov.

If use of the myGovID app is not preferred, application can be made by phone or via paper form. Identification details are required when applying.

Identification details

To apply for a DIN a person will need to provide the following required documentation to verify your identify:

• Tax file number (TFN);
• Residential address as held by the Australian Taxation Office; and
• Information from two documents to verify their identity (eg Australian passport, drivers licence, birth certificate).

Foreign Resident Directors

The timeframes are unchanged for foreign resident directors. Foreign resident directors who have Australian documentation may still be able to apply through the myGovID app or via telephone or paper form.

To complete the online application, the foreign director will need to lodge a paper application and provide:

• A certified copy of one primary document, such as a foreign birth certificate, foreign passport; and
• A certified copy of one secondary document, such as a national photo ID, driver’s license.

The identify documents must be certified by:

• Notary publics; or
• Staff at an Australian embassy, high commission or consulate, including consulates headed by Austrade honorary consuls.

The certifier must, in the presence of the foreign director, certify that each copy is a true and correct copy of the original document. This involves:

• Sighting the original document;
• Stamping, signing and annotating the copy of the identity document to state, ‘I have sighted the original document and certify this to be a true and correct copy of the original document sighted’;
• Initialling each page; and
• Listing their name, date of certification, phone number and position.

We recommend that foreign resident directors commence this process as soon as possible.

Managing your DIN

Notify all companies

Once a DIN has been obtained, it must be passed on to each ASIC registered entity where the director holds an appointment.

From April 5, 2022, a director will be required to provide their DIN before appointment (or November 1, 2022 for Aboriginal and Torres Strait Islander corporations).

There is no set procedure for when or how companies need to provide DINs to ASIC at this time.

Updating your personal information

If a director’s personal information changes, they must:

• Update their DIN online at the ABRS site;
• Notify their companies within seven days of such a change (or within 14 days if a director of an Aboriginal and Torres Strait Island corporation).

In addition, a company must then notify ASIC of the change within 28 days in the usual way to avoid late fees.

Privacy

A DIN is not governed by the same rules or laws that apply to a TFN. It confirms a director’s identity and will, in future, show which companies that director is linked to. 

An authorised agent or company secretary must ensure that information about a company and its officeholders is:

• Handled according to their legal obligations; and
• Securely stored.

For now, a DIN will not be searchable by the public. The ABRS is not authorised to disclose DINs to the public without the director’s consent. The ABRS and ASIC will consult the community about what details can be disclosed and searched in the future.

Offences

Failure to meet obligations or causing an offence in relation to a DIN may incur an infringement notice leading to potential civil penalties (up to 5,000 penalty units, currently AU$1.11 million) and/or criminal charges (up to 12 months imprisonment). Offences include applying for multiple DINs and using false information in an application.

Further information

Further information can be found at the myGovID website and the ABRS website.

Whilst we cannot make the application on a director’s behalf, our corporate team can assist with queries and direct foreign resident directors to notaries within the Dentons global network to assist with notarisation of identity document.