The deadline for existing directors of Australian companies to apply for a Director Identification Number (DIN) is approaching. This is a mandatory requirement that applies to all Australian company directors.
What does this mean?
Under Part 9.1A of the Corporations Act 2001 (Cth) (Corporations Act), any person who is, or will be, a director of:
- a company, a registered Australian body or a registered foreign company registered under the Corporations Act; or
- an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth) (CATSI Act),
is required to have a DIN.
The DIN is a unique number that is issued to that director and will assist other parties (namely regulatory authorities) to identify individuals appointed as a director of multiple companies. The primary objective behind the DIN regime is to combat illegal phoenix activity.
Transition Period
The DIN regime has been implemented over a staged transition period, which commenced on 1 November 2021. The transition period for directors of organisations registered under the Corporations Act ends on 30 November 2022.
Relevant dates for compliance by existing directors are:
- 30 November 2022 (for directors of organisations registered under the Corporations Act): and
- 30 November 2023 (for directors of organisations registered under the CATSI Act).
Persons currently appointed as directors of a company registered under the Corporations Act must apply for a DIN by 30 November 2022.
Relevantly, all persons who:
- are to be appointed as a director of a company; and
- do not have a DIN,
must apply for a DIN before they are appointed as a director of the relevant company.
Set out below is a table of the relevant dates by which directors and prospective directors must apply for a DIN.
| Date of first current appointment as a director | Date by which an application for a DIN must be made | |
|---|---|---|
| Directors of organisations registered under the Corporations Act | On or before 31 October 2021 | By 30 November 2022 |
| Between 1 November 2021 and 4 April 2022 | Within 28 days of appointment | |
| From 5 April 2022 | Before appointment | |
| Directors of organisations registered under the CATSI Act | On or before 31 October 2022 | By 30 November 2023 |
| From 1 November 2022 | Before appointment |
Applying for a DIN
Directors who hold Australian identification documents or an Australian tax file number can lodge an application for a DIN:
- using their myGovID login;
- by telephone (with the Australian Business Registry Services (ABRS)); or
- by paper application form submitted to the ABRS.
The obligation to obtain a DIN also applies to overseas based directors. They need to submit a paper application form together with certified copies of identification documents. Any identification documents will need to be translated into English.
The obligation to obtain a DIN also applies to overseas based directors. Overseas based directors are required to submit a paper application form together with certified copies of identification documents. Any identification documents not in English (or which have a certification which is not English) is required to be translated into English by an authorised translator.
Extension of Time to Apply for a DIN
Directors can apply for an extension of time if they are not capable of applying for their DIN before the relevant deadline.
It should be noted that no guidance has been given in respect of the assessment of applications for an extension of time. As a result, we would recommend that directors should take steps to complete and lodge an application for a DIN before the relevant deadline.
If you would like further information relating to the DIN requirements, please contact Jamie Nettleton or Jessenia Prado-Banton.