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Just like other businesses, directors of security companies are required to undergo identity verification and apply for a Director ID (Director Identification Number). Applicants need to verify their identity using existing ATO-held information and identification documents. Directors can process their applications with these three options such as MyGovID, paper form, or by phone.
As you read along, we will provide more details to apply for a Director Identification Number.
What is a Director Identification Number?
A Director Identification Number or director ID is a 15-digit combination given to a director or an individual applying for that position who has already accomplished identity verification with the Australian Business Registry Services. It will be used to track working relationships with security companies. Directors will only need one Director Identification Number.
This requirement is part of the Australian Government’s Treasury Laws Amendment Act 2020. The law is implemented to minimise the fraudulent director identity by providing a unique ID.
Who Needs a Director ID?
A director needs a Director Identification Number if he or she is an officer of a:
– Registered Australian entity or a registered foreign company under the Corporations Act 2001
– An Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act)
A professional who expects to be an eligible officer within twelve months can apply for a director ID. After registration, the individual has to be an eligible officer in twelve months or else, their director Id will become invalid.
Methods to Apply for a Director ID
Directors have three options to apply for a Director Identification Number:
1. Paper form
Directors can download the form to complete their application with copies of documents to verify their identity.
Applications can also be made using a mobile phone if the individual has an Australia Tax file number (TFN) as well as certified copies for identity verification.
When Should a Director ID Be Used?
The Director Identification number can be submitted by another director, an authorised agent of the security company, or to the secretary.
If the individual transfers to another company, the director has to provide the director ID to an authorised figure in that company. Directors should send a notice to the registrar if changes are needed with their director ID.
To apply for a directors ID, you can do this through your accountant or lawyer