ASIC has reminded directors of all entities that they are required by law to hold a Director Identification Number (Director ID).  The requirement for all current directors to hold a Director ID have been live since November 2023, however ASIC is concerned that a large number of current directors have not yet registered for their Director ID and therefore face criminal penalties and is urging laggards to register urgently.

The Australian Securities & Investments Commission (ASIC) recently issued a letter to all directors and authorised agents warning further actions will be taken if a director fails to apply for a director identification number (Director ID).

You need a Director ID if you are a director of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation. It is a criminal offence for a director to not apply on time.

A director identification number (director ID) is a unique identifier you will keep forever. It will help to prevent the use of false or fraudulent director identities.

How Director ID works

A Director ID is a 15-digit identifier given to a director (or someone who intends to become a director) who has verified their identity with us.

A Director ID:

  • 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 Director ID. It’s free to apply.

Directors will only ever have one Director ID. 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 Director ID

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 ABRS before receiving a Director ID. 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.

Who needs a Director ID

You need a Director ID if you’re an eligible officer of:

  • a company, registered Australian body, or 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).

An eligible officer is a person who is appointed as either:

  • a director
  • an alternate director who is acting in that capacity.

To be a director under the Corporations Act, you must:

  • be an individual who is at least 18 years old
  • not be disqualified from managing corporations, unless the appointment is made with the permission of ASIC or the Court.

You will only ever need one Director ID. You don’t have to apply for another one if you become a director of other companies or corporations.

You must apply for your own Director ID to verify your identity. No one can apply on your behalf.

People who DO need a Director ID

You need a Director ID if you’re a director of either a:

  • company
  • Aboriginal and Torres Strait Islander corporation
  • corporate trustee, for example, of a self-managed super fund
  • charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation
  • registered Australian body, for example, an incorporated association that is registered with the Australian Securities and Investments Commission (ASIC) and trades outside the state or territory in which it is incorporated
  • foreign company registered with ASIC and carrying on business in Australia (regardless of where you live).

If your organisation has an Australian business number (ABN), you can use ABN Lookup to find out if it is registered with ASIC as a:

  • company, which will have an Australian company number (ACN)
  • registered Australian body, which will have an Australian Registered Body Number (ARBN)
  • registered foreign company, which will have an ARBN.

The Office of the Registrar of Indigenous Corporations (ORIC) maintains a register of Aboriginal and Torres Strait Islander corporations. These corporations have an Indigenous Corporation Number (ICN) and may also have an ABN.

People who DO NOT need a Director ID

You don’t need a Director ID if you’re either:

  • a company secretary but not a director
  • acting as an external administrator of a company
  • running a business as a sole trader or partnership
  • referred to as a ‘director’ in your job title but have not been appointed as a director under the Corporations Act or the CATSI Act
  • a director of a registered charity with an organisation type that is not registered with ASIC or ORIC to operate throughout Australia
  • an officer of an unincorporated association, cooperative or incorporated association established under state or territory legislation, unless the organisation is also a registered Australian body
  • a director before 31 October 2021, but no longer hold any director roles on or after 1 December 2022.

If you’re unsure whether you’re a company director or who the directors of an entity may be, you can search:

As long as the entity maintains their details as required, any directors listed through these searches (and any directors appointed in future) will be required to obtain a Director ID.

Meeting director obligations

Director obligations include:

  • applying for a Director ID within the relevant timeframe for your situation
  • applying for a Director ID when directed by the Registrar to do so
  • not applying for more than one Director ID (unless directed by the Registrar to do so)
  • not misrepresenting your Director ID to a Commonwealth body, company, registered Australian body or Aboriginal and Torres Strait Islander corporation
  • not being involved in a breach of the above Director ID obligations.

If you require additional time to apply, you can complete an Application for an extension of time to apply for a director ID (NAT 75390, PDF 271KB).

It is a criminal offence if you do not apply on time. ASIC is responsible for enforcing director ID offences set out in the Corporations Act 2001.

Help and support

Your authorised tax, BAS or ASIC agent can help you decide if you need to apply, but they can’t apply on your behalf.

You can also contact ABRS.

Elisha Radwanowski BCom (HRM & IR)

ACAPMA

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