Directors of new and existing Australian entities need to take action.
From November 2021, new and existing Directors of Australian companies will need to apply for and verify their identity as part of the new statutory requirements which assists regulators to track and combat illegal company phoenix activities.
The 15 digit identification number is a unique identifier that is required if you are an eligible officer of:
- a company, a registered Australian body or a registered foreign company under the Corporations Act 2001 (Corporations Act)
- an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).
Or you are a person who is appointed as:
- a director
- an alternate director who is acting in that capacity.
When do I need to apply for a DIN?
- Existing company directors will have until 30 November 2022 to apply for a DIN.
- Directors appointed to companies between 1 November 2021 and 4 April 2022 will have 28 days from appointment to apply for a DIN.
- Any director appointments after 4 April 2022 will need to apply for a DIN before appointment.
- Existing directors of indigenous corporations will have a further year until 30 November 2023 to apply.
Failure to apply for a DIN can result in significant penalties. If you cannot apply by the due date you need to apply for an extension via the ABRS website.
How to apply for a DIN
Applications for a DIN will be made through the new Australian Business Registry service https://www.abrs.gov.au/.
This service, managed by the Australian Taxation Office (ATO) will bring together the Australian Business Register (ABR) and over 30 ASIC registers. It is hoped that bringing all of the registers under the one organisation should help to reduce red tape over time.
Applications for the DIN should open in November 2021. Australian residents can use the myGovID system to help apply, or if myGovID is not available, a paper application can be made.
Non-residents must apply by paper and send notarised copies of identification documents to provide their identity. While this may initially delay company incorporations where foreign individuals are involved, the identity documentation is required by the ATO anyway for tax registrations.
Directors must apply for their own director ID to verify their identity. No one can apply on behalf of the Director.
Please refer to the related content below for our earlier information that Mazars has published about the DIN.
Should you have any queries, please contact your usual Mazars Advisor or one of our specialists via the form below or on:
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