A director identification number (DIN) is a unique identifier you will keep forever. It will help to prevent the use of false or fraudulent director identities.
Steeps to apply for a DIN:
- Set up myGovID: https://www.abrs.gov.au/director-identification-number/apply-director-identification-number
- Gather your documents
- Complete your application
How DIN works:
A DIN a 15-digit identifier given to a director (or someone who intends to become a director) who has verified their identity with us.
Starts with 036, which is the 3-digit country code for Australia under International Standard ISO 3166
ends with an 11-digit number and one ‘check’ digit for error detection.
Directors need to apply for their own DIN. It’s free to apply.
Directors will only ever have one DIN. They’ll keep it forever even if they:
– Change companies
– Stop being a director
– Change their name
– Move interstate or overseas.
Why you need a DIN:
Shareholders, employees, creditors, consumers, external administrators and regulators are entitled to know the names and certain details of the directors of a company.
All directors are required by law to verify their identity with us before receiving a DIN. This is important because it will help to:
– Prevent the use of false or fraudulent director identities.
– Make it easier for external administrators and regulators to trace directors’ relationships with companies over time.
– Identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.
Illegal phoenix activity is when a company is liquidated, wound up or abandoned to avoid paying its debts. A new company is then started to continue the same business activities without the debt.
When this happens:
– Employees miss out on wages, superannuation, and entitlements.
– Suppliers or sub-contractors are left unpaid.
– Other businesses are put at a competitive disadvantage.
– The community misses out on revenue that could have contributed to community services.