The Director Identification Number (DIN) will require all directors to confirm their identity. It will be a unique identifier for everyone who consents to be appointed a director under the corporations’ Act 2001 (Cth)
All directors will be required to establish their identity with the new Commonwealth Registrar before receiving their unique director number. They will retain their DIN throughout their lifetime, even if they cease to be a company director.
Directors will also need to prove their identity using key identifying documents, such as a driver’s licence, passport, birth certificate or visa. They may be asked to provide their tax file number (TFN).
Why have the Directors Identification been Introduced?
The reason for the director’s Identification number is to help prevent the use of fictitious director identities, help regulators trace directors’ relationships with companies over time, and better identify director involvement in unlawful activity such as illegal phoenix activity.
Which companies will require Director Identification Numbers
The new DIN requirements apply to appointed directors and current directors of Australian corporations and registered foreign companies under the Corporations Act 2001 (Cth), including companies responsible for managed investment schemes and registered charities and Aboriginal and Torres Strait Islander corporations.
Who will administer the Directors Identification Number
A new Commonwealth Business Registry will be established as a current centralised business register, and the Australian tax office will administer it.
What happens If a director does not obtain a Directors Identification Number
If you fail to apply for and comply with the DIN regulations once they officially come into force, you might potentially face both civil and criminal penalties, including imprisonment.
When do I need to Apply for a Directors Identification Number?
New and existing directors must apply for a director Identification number (DIN) by 30 November 2022. The new regime will commence from 1st November 2021.
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