What is a Director ID, How Does It Work, Do You Need One?

Have you heard about the Director ID or Director Identification Number (DIN) and wondered whether you need to get one?

The Australian Government introduced this new identification requirement as part of a package of reforms to address illegal activity within the market.

What is a director identification number (ID)?

A director identification number (DIN) is a unique eight digit identification number issued to the director of a company. A DIN is issued to an individual who holds the position of director in a company or has held that position in the past.

How does it work?

A director identification number (DIN) is a unique number that identifies your company and is used on all official government records to make it easier for ASIC, the Australian Taxation Office (ATO) and other government agencies to manage your company’s information.

When you register a new company with ASIC, you will be issued a director ID. You can use this number to identify yourself to government authorities, such as ASIC and the ATO.

When you pay ASIC fees for your company, you will be prompted to enter your own Director Identification Number (DIN). You can find your number on any notice that ASIC has sent to you since it started issuing numbers.

If you have already notified ASIC of your appointment as a director, but have not yet received a DIN, you can use the temporary password provided on your notice or reminder letter. If you cannot find this password, contact ASIC for assistance.

Who needs to get a director ID?

Any person who is formally appointed as a director of an incorporated company is required to have a Director Identification Number (DIN). This includes foreign directors.

Foreign directors are individuals who are not Australian citizens or permanent residents but are formally appointed as a director of a company incorporated in Australia.

If you’re a foreign director, you will need to apply for a DIN before you can be appointed as a director of the Australian-registered company.

This number is issued by the Australian Securities and Investments Commission (ASIC) and must be obtained before being formally appointed as a director. It identifies directors so they can be contacted if required by ASIC.

Conclusion

Essentially, a director’s ID is like a passport for the business world, allowing you to prove that you are who you say you are. The purpose of this is to stamp out illegal activity and make it harder for people to hide behind anonymous business entities.

We hope that you’ve found this to be a useful guide in understanding Director ID. If you require more information, please visit ASIC, or if we can help you, please contact us for assistance.

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