How to Apply for a Director ID Before Becoming a Company Director in Australia

Who needs a director ID in Australia?

A director identification number, usually called a director ID, is a unique 15-digit identifier issued after Australian Business Registry Services verifies a director's identity.

You need one if you are an eligible officer of a company, registered Australian body or registered foreign company under the Corporations Act 2001, or an Aboriginal and Torres Strait Islander corporation under the CATSI Act. This includes a person appointed as a director and an alternate director while acting in that capacity.

You also qualify to apply before appointment if you genuinely intend to become an eligible officer within the next 12 months.

Who does not need a director ID?

You do not need a director ID solely because you are a company secretary who is not also a director, an external administrator, a sole trader or partner, or someone whose job title includes the word director without an appointment as a director under the relevant legislation. Certain officers of organisations established only under state or territory legislation may also fall outside the requirement unless the organisation is additionally a registered Australian body.

When should you apply before becoming a director?

If you are planning to become a director, ABRS says you must apply before your appointment. You can apply up to 12 months before becoming an eligible officer.

The Corporations Act allows a person who is not yet an eligible officer to apply where they intend to become one within 12 months. If the person does not become an eligible officer within that period, the legislation provides for the director ID obtained on that basis to be taken as cancelled at the end of the 12-month period.

It is therefore sensible to complete the director ID process before finalising a director appointment. If you are setting up a new proprietary company, the director ID is a separate personal compliance step from the company registration itself. See how to register a Pty Ltd company in Australia for the separate company registration procedure.

How much does a director ID cost?

Applying for a director ID through ABRS is free.

You must apply for your own director ID because the process verifies your personal identity. Your accountant, tax agent, BAS agent, ASIC agent or lawyer can help you understand the requirements, but they cannot submit the director ID application on your behalf.

What do you need to apply online?

The fastest standard method is through ABRS online. To use this route, you need a Digital ID such as myID with at least Standard identity strength and a smart device for the myID app.

Documents for Standard myID identity strength

ABRS states that establishing at least Standard identity strength can use two accepted Australian identity documents. The supported list includes:

• Australian passport, current or expired by no more than three years;
• Australian driver licence or learner permit;
• Australian birth certificate;
• Australian citizenship certificate;
• Medicare card;
• eligible visa details using a foreign passport; or
• ImmiCard.

The requirements for establishing your Digital ID are separate from the additional identity questions asked when you enter the ABRS director ID application.

Information ABRS asks you to verify

For the online director ID application, ABRS asks for personal information that matches information held about you. You need your residential address as recorded by the Australian Taxation Office and answers to identity questions based on suitable records.

Your individual Australian tax file number is optional. Providing a TFN can help match your records, but ABRS states that you are not required to provide it.

Information used for the additional verification questions can come from records such as:

• a bank account into which you received an Australian tax refund or that earned interest in the previous two years;
• an ATO notice of assessment issued within the previous five years;
• an eligible APRA-regulated super account;
• a dividend statement from the previous two years;
• a Centrelink payment summary from the previous two years; or
• a PAYG payment summary from the previous two years.

How do you apply online through ABRS?

Once your Digital ID and identity information are ready, the online process is relatively short.

1. Open the director ID application through ABRS online.
2. Enter the email address associated with your myID.
3. Check the four-digit code displayed in your browser.
4. Open the myID app separately and accept or enter that code.
5. Complete the identity-verification questions using your personal records.
6. Open the director ID service and select the option to apply for a director identification number.
7. Read and confirm the required declarations.
8. Submit the application.

When the online application is successfully completed, ABRS guidance says your director ID should appear on screen. Record it securely.

What if you cannot get myID or apply online?

ABRS provides alternative routes for people who cannot establish the required Digital ID. The correct method depends on whether you live in Australia or overseas.

If you live in Australia

If you cannot set up myID with at least Standard identity strength, ABRS allows you to apply by phone. Identity verification can use information ABRS or other government bodies hold about you, together with appropriate Australian identity documents.

For a phone application, ABRS specifies one primary and one secondary Australian identity document, along with your ATO-recorded residential address and answers to identity questions. Providing your TFN is optional but may speed up verification.

If ABRS cannot issue your director ID over the phone, it can require a paper application. For the Australian paper process, certified identity evidence is required. ABRS warns not to send original identity documents.

If you live outside Australia

An Australian resident living overseas can still apply online if they can establish myID with the required Australian identity documents. If online application is not possible, ABRS provides the Application for a director identification number – for people living outside Australia (NAT 75433).

The overseas paper application must be supported by certified identity documents. ABRS accepts either one primary plus one secondary identity document, or two primary documents. Primary evidence can include a foreign passport, foreign birth certificate, Australian full birth certificate or qualifying Australian passport. Secondary evidence can include national photo identification, foreign government identification, a qualifying driver licence or marriage certificate.

Outside Australia, documents can be certified by a notary public or authorised staff at an Australian embassy, high commission or consulate. Documents that are not in English must also be translated into English in accordance with ABRS requirements.

What if you cannot apply by the required date?

If you cannot apply by the date required, ABRS provides an Application for an extension of time to apply for a director ID (NAT 75390). The availability of an extension does not mean a deadline can simply be ignored; the extension request should be made using the official process where necessary.

What happens after you receive your director ID?

You generally receive one director ID for life. You keep the same identifier if you become a director of additional companies, stop being a director, change your name, move interstate or move overseas.

For directors under the Corporations Act, ABRS states there is currently no requirement to provide the director ID directly to ASIC. Directors of corporations governed by the CATSI Act have separate obligations, including providing the number to the corporation's record-holder within the applicable timeframe.

Your director ID does not create a company, provide an ABN or register a business name. Those are separate registrations. If the business also needs an Australian Business Number, see how to apply for an ABN.

Common mistakes that can delay or complicate your application

• Waiting until after the proposed appointment date instead of applying before becoming a director.
• Asking an accountant or agent to apply on your behalf when the director must complete their own identity verification.
• Confusing myGov with myID. ABRS online access uses a Digital ID such as myID.
• Using company records instead of your own personal information for identity verification.
• Entering an address that does not match the residential address held by the ATO.
• Assuming a TFN is compulsory when ABRS states that providing it is optional.
• Submitting uncertified identity copies for a paper application.
• Sending original identity documents when ABRS instructs applicants to send certified copies instead.
• Applying for another director ID when you already have one; a director normally keeps the same number permanently.
• Assuming a director ID replaces the separate process for registering a company, ABN or business name.