Director Identification Requirements
3 March 2022 in Business Law | 2 min read | skip to FAQsAs a result of recent legislation, there are new ASIC director identification requirements. Directors are now legally required to have a director ID. All directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation will need a director ID.
What are the Director Identification Requirements?
A director ID is a 15 digit identifier which verifies the identity of a director. Director IDs are held by a director in perpetuity, meaning a director will keep their same ID forever even if they stop being a director or switch companies. Director IDs are verified with the Australian Business Registry Services. Directors who do not have a director ID are exposed to serious criminal and civil penalties.
Why do I Need a Director ID?
There are several reasons why ASIC has introduced these director identification requirements. Firstly, director IDs will assist in preventing the use of false or fraudulent director identities. Secondly, director IDs will assist administrators in tracing a director’s relationships with various companies. Thirdly, director IDs will assist in the law’s responding to and preventing illegal activity.
How do I Obtain an ID to comply with Director Identification Requirements?
A director ID can be obtained through either online registration, telephone registration or paper registration. These methods are briefly summarised as follows:
Online Registration
- Set up a myGovID
- Gather appropriate documents. These are (a) tax file number (b) residential address as held by the ATO (c) 2 documents which can verify your identity such as bank details or an ATO notice of assessment.
- Complete the online prompted application through the myGovID application.
Telephone Registration
- Gather appropriate documents. These are (a) tax file number, (b) residential address as held by the ATO, (c) 2 documents which can verify your identity such as bank details or an ATO notice of assessment.
- Call the Australian Business Registry Services on 13 62 50.
Paper Registration
This is only available if online and telephone registration is unavailable.
- Complete and lodge an application form by post. An application form can be obtained online from the Australian Business Registry Services website.
- Provide certified copies of documents which verify your identity.
When do I Need to Apply for a Director ID?
There are important time limits which apply to directors when obtaining their Director ID. These time limits differ depending on whether a director is a director under either the Corporations Act 2001 (Cth) or the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth) and when they first became a director:
- For directors under the Corporations Act 2001 (Cth), if they became directors on or before 31st October 2021 they must apply by the 30th November 2022.
- For directors under the Corporations Act 2001 (Cth), if they became a director between 1st November 2021 and 4th April 2022 they must apply within 28 days of their appointment.
- For directors under the Corporations Act 2001 (Cth), if they became a director on or after 5th April 2022 they must apply for a Director ID before their appointment.
- For directors under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth), if they became directors on or before 31st October 2022 must apply for a director ID by 30th November 2023
- For directors under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth), if they came a director from 1st November 2022 must apply for a Director ID before their appointment.
How can BSM Sydney Lawyers assist you?
The business lawyers at BSM Sydney Lawyer are happy to advise and assist you on all areas of business law. Our lawyers have decades of experience and are up to date with current legislation, including director identification requirements. We are happy to assist and advise you. The business lawyers at Brander Smith McKnight law firm Sydney offer a free 20 minute consultation.
Call us to arrange a free 20 minute no obligation consultation that includes case evaluation and cost estimate.
FAQs
What are Director Identification Requirements?
It is an ASIC requirement which was legislated in 2022. It is a 15 digit number which identifies a person who is or has been a director of a company. This personal ID number never changes and is verified and registered with the Australian Business Registry Services. It is illegal to be a director of a company without this number and there are serious criminal and civil penalties if this is not adhered to.
The business lawyers at BSM Lawyer Sydney are able to assist you with all of your business matters.
How do I apply for a Director's Identification Number?
You can apply online, via telephone or if these are unavailable by post. You need to provide:
- tax file number
- residential address as held by the ATO
- 2 documents which can verify your identity such as bank details or an ATO notice of assessment.
The business lawyers at BSM Lawyer Sydney can assist with your application. We offer a free 20-minute consultation.
Why were Director's Identification Numbers Introduced?
- To prevent false, fraudulent or multiple director identities, thus helping to address companies participating in fraudulent or scam business.
- To assist administrators if a company becomes insolvent, by tracing director’s and therefore being able to recover debts incurred if the company was trading while insolvent.
- Assisting the government in responding to and preventing illegal activity. Examples of this include nonpayment of company taxes such as GST and PAYG, which ultimately become the director’s liabilities if not paid by the company.
BSM Lawyer Sydney have offices conveniently located in Sydney CBD, Sutherland, Parramatta, Shellharbour and Wollongong.
About the Author
William OnishiMaster of Law & Legal Practice I Bachelor of Commerce majoring in Accounting I Graduate Diploma of Legal Practice I Admitted to the Supreme Court of NSW & the High Court of Australia
View profileWilliam Onishi is a highly accomplished, well respected and experienced lawyer who is a partner at Brander Smith McKnight. He holds a Bachelor of Commerce with a major in Accountancy and a Master of Laws & Legal Practice. He was awarded NSW Young Lawyer of the Year by Justice Harrison during his academic studies. With a strong background in accountancy, William brings a methodical and thorough approach to all of his matters, delivering meticulous work and successful outcomes for his clients. William has over 20 years of experience in business law including advising on business start-up, business structure, contract negotiation, directors' duties including director identification requirements.
