What is the significance of the Australian Director identification number for a small business in Australia?
The Australian Government is constantly implementing new laws and schemes to prevent phoenixing and other unlawful business activity.
In the previous year, the ABRS (Australian Business Registry Services) integrated the Director Identification Number (DIN) register to limit business defiance from growing under the radar.
So who is expected to apply for a DIN? And what will happen if you don’t apply?
As Australia’s original accounting firm for small business, we have underlined the exact parameters for small businesses.
A Director Identification Number, also called Director ID or just DIN, is a 15-digit code given to:
Your director ID will be linked with you forever, even if you change roles, change businesses, change your name, or move or stay outside of Australia.
The registry plan has been passed in parliament in June 2020 as a portion of a 2019 Bill which says that 30 registers will be established in Australia to prevent phoenixing, including the DIN.
A DIN is compulsory for business directors and the time limit to apply depends on for what time you have been a director for the company:
Failing to register by the relevant date could lead to severe penalties, like a $200,000 fine or one year imprisonment.
The simplest way to register for a DIN is by using MyGovID. This app differs from MyGov which you use to view your health certificates or to do your taxes.
After downloading it, when you open the app, it will shortly prompt you to apply for a Director ID.
There are several documents you’ll require to attach to verify your identity and confirm the rightfulness of who you claim to be.
Contact M.A.S Partners today
If you don’t have an account or require help going through the process of registering for DIN, we are a small business accounting firm in Sydney that assists both existing and new clients with their needs. We focus on making their business a success.
Contact us today for more information.