Hey Director! Get your DIN! — Brown Wright Stein Lawyers | Sydney Lawyers - Tax Specialist Lawyers, Corporate & Commercial Lawyers..

All directors of Australian or registered foreign companies under the Corporations Act 2001 will now need to apply for a director identification number (DIN), as administered by the Australian Business Registry Services.

A DIN is a unique identifier for a director which is personal to that director. A director will keep the same DIN regardless of whether that director is appointed to another company, ceases to be a director, changes their name or moves locations.

DINs have been introduced as a means to prevent illegal "phoenix" activity, and assist regulators in tracking the identity of company directors.

Who must obtain a DIN?

A director or alternate director (acting in that capacity) of a:

company registered under the Corporations Act;
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 ASIC and trades outside the state or territory in which it is incorporated;
foreign company registered with ASIC and carrying on business in Australia.

When must you apply?

From 1 November 2021 directors and alternate directors of companies registered under the Corporations Act must apply for their Director Identification Number.

If you became a director on or before 31 October 2021, you have until 30 November 2022 to apply.

If you became a director from 1 November 2021 to 4 April 2022, you must apply within 28 days of becoming a director.

If you become a director for the first time from 5 April 2022, you must apply for a DIN before your appointment as a director.

Apply for your DIN

To apply for a DIN, directors will need to first apply for their myGovID, and then apply for their DIN on the new Australian Business Registry Services (ABRS).

1. Apply for your myGovID

You need to download the myGovID app and have at hand your identification documents to enter details. The steps are at https://www.mygovid.gov.au/set-up. To verify your identity you will need to select "Standard identity strength" or "Strong identity strength".

Alternatively, directors can apply by phone on 13 62 50, or by a paper form found here. To submit the paper application, directors will need to provide certified copies of their documents to verify their identity.

2. Apply for your DIN on ABRS online

Login to your myGovID and apply for your DIN on the ABRS.

The Government has introduced the ABRS as a streamlined platform for entities to view their companies register, business names registers, Australian business numbers and professional and historical registers.

What next?

When you obtain your DIN you must pass it on to the record-holder in your company.

If your personal information changes you need to update your details on ABRS online and notify the secretary of the company within 7 days.

The company must also notify ASIC within 28 days of any changes to director's details.

Civil and criminal penalties

As outlined in a previous article Hey Director! What's your DIN? there are serious consequences for failing to comply with the DIN regime.

Individual directors who do not apply for a DIN within the time frame can face fines of up to 5,000 penalty units. Currently, penalty units are $222 per unit, meaning fines of up to $1.1 million may apply to non-compliant directors.

Directors may also face possible imprisonment of up to 12 months if they apply for more than 1 DIN.

Please contact our commercial team for more information or to discuss how these changes might impact your company.

The material in this article was correct at the time of publication and has been prepared for information purposes only. It should not be taken to be specific advice or be used in decision-making. All readers are advised to undertake their own research or to seek professional advice to keep abreast of any reforms and developments in the law. Brown Wright Stein Lawyers excludes all liability relating to relying on the information and ideas contained in this article.