Director Identification Requirements

3 March 2022 in Business Law, Civil and Commercial Litigation and Law

As a result of recent legislation, 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 is a Director ID?

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 directors now need director IDs.  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 a Director ID?

A director ID can be obtained through either online registration, telephone registration or paper registration.  These methods are briefly summarised as follows:

Online Registration

1. Set up a myGovID
2. 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.
3. Complete the online prompted application through the myGovID application.

Telephone Registration

1. 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.
2. Call the Australian Business Registry Services on 13 62 50.

 Paper Registration

This is only available if online and telephone registration is unavailable.

1. Complete and lodge an application form by post.  An application form can be obtained online from the Australian Business Registry Services website.
2. 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.

The lawyers at Brander Smith McKnight are happy to advise and assist you on all areas of business law.

We are conveniently located in Sutherland, Parramatta, Wollongong and Sydney CBD.