As a part of the recently imposed director ID requirements, company directors are expected to verify their identity by applying for a 15-digit identification number.
This has been implemented by the Australian Business Registry Services (ABRS) to prevent the use of false or fraudulent director identities.
Why do you need a director ID?
Stakeholders are entitled to know the name and certain details of the directors of a company.
It is required by law that directors verify their identity with the Australian government before receiving a director ID. This helps to:
- Identify and eliminate director involvement in illegal activity.
- Prevent the use of false or fraudulent director identities.
- Make it easier to trace directors’ relationships with company’s overtime.
How director ID works?
A director ID is a 15-digit identification number given to a director who has verified their identity with the ABRS.
Directors need to apply for their own director ID. It is free to apply.
Directors will only need to apply for one ID. This won’t change even if they change companies, change their name or stop being a director.
Who needs to apply for a director ID?
You will require a director ID if you are an eligible officer of a registered Australian body or a company under the Corporations Act 2001 (Corporations Act).
An eligible officer can be classified as a director or someone who conducts a similar role.
If you plan to become a director, you can apply before your appointment.
To be a director under the Corporations Act you must be at least 18 years old.
How to apply?
The easiest way to apply for a director ID is through the myGovID app.
Step 1 – Set up myGovID
It is required that you have a myGov ID with a standard or strong identity strength.
If you don’t have a myGovID, download the app here.
Step 2 – Submit documents
You will need information the ATO knows about you in order to apply for your ID. This can include:
- Tax file number
- Residential address
- Bank account details
- Dividend statement
- Super account details
Step 3 – Complete application
Once you have completed the first two steps you can login and apply for your director ID.
The application process should not take any more than five minutes.