What is a Director ID? And, is it Mandatory to have a Director ID in Australia?

 

What is a Director ID? 

If you are the director of any corporation in Australia, you are required to have a Director ID. This is a 15-digit number that serves as your permanent identification. Moreover, your director ID won't change whether you resign, go to a different organization, alter your name, or reside abroad. 

The Australian Business Registry Services (ABRS) is a new organization that was created with the goal of unifying over 30 distinct types of governmental registers. After confirming your identification, it will provide you with a Director ID.

Importantly, hiring an Australian business lawyer can help you with the process of obtaining a Director ID.

Who Needs a Director ID?

Suppose you serve as a director for any corporation listed below that is registered under the Corporations Act of 2001. In that case, you'll be obliged by law to get a director ID if you’re an eligible offer 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.

● 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.

A commercial lawyer is familiar with the legal processes associated with obtaining a Director ID.

How to Apply for a Director ID?

● Directors must apply for their own Director IDs since they have to show their identification. In addition, a Director ID cannot be requested on behalf of a Director by their legal advisor.

● Director ID is issued by ABRS, which will give directors the necessary assistance and direction to help them receive their Director ID.

● The myGovID app is the quickest way to get your Director ID online. However, on the ABRS website, you will find more details on how to apply for a Director ID.

Need assistance setting up your business? Hire an experienced corporate lawyer in Australia to formulate company policies and legal documentation.

Foreign Resident Directors

Directors of Australian corporations who live abroad are subject to the director ID requirement. The standard online application procedure may be used to submit applications by foreign resident directors who are Australian citizens, including those with dual citizenship.

Non-Australian citizen directors of Australian corporations must complete a director ID application and submit printed copies of necessary documents. In addition, these documents must be in English or have an official notarized English translation.

Penalties

ASIC is in charge of enforcing the Director ID under The Corporations Act of 2001. Non-compliance might result in severe penalties.

You can receive an infringement notice and be subject to criminal charges and civil fines of up to $5,000+ if you don't obtain a director ID within the necessary deadlines.

Therefore, collaborate with top legal experts from the best law firms in Australia to avoid non-compliance with the Corporations Act 2001 and its regulations during business operations and avoid penalties,

Wrapping Up 

You should be aware that the Australian Government is enforcing a new registration requirement, the Director ID, which may apply to you if you are a current director of a company. In order to stop unlawful phoenix activity and the use of fraudulent director information, director IDs have been made mandatory for the directors of Australian corporations.