From the 1 of November 2021, Australia’s 2.7 million company directors can apply for their director identification numbers (Director ID) using the Australian Business Registry Services (ABRS) website. All directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation will need a director ID.
About director ID
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 ABRS. 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 us 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.
ASIC is responsible for enforcing director ID offences set out in the Corporations Act 2001. It is a criminal offence if you do not apply on time.