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Director ID in Australia: How Foreign Founders and Directors Apply

Director ID in Australia: How Foreign Founders and Directors Apply

Everything a founder or director needs to know about getting a director identification number, whether you are setting up an Australian company at home or from overseas, or joining an existing Australian board.

Whether you are an Australian founder registering your first company, a foreign founder setting up an Australian entity, or an overseas investor or executive joining an Australian board, you will need a director identification number, usually called a director ID number or DIN, before you can be appointed as a director. The Australian Business Registry Services (ABRS) issues it, and the process depends mainly on where you live and whether you can set up an Australian digital ID.

Australian founders can usually apply online in a few minutes, and the section on how Australian founders apply covers what they need. Foreign founders and overseas directors follow the same application process as each other, but foreign founders have extra steps to plan for when setting up a company, including appointing a resident director.

Setting up an Australian company, or adding an overseas director to your board? Our Corporate lawyers can help you plan the company set-up or appointment, and our Australian team works with international boards every day. Book a meeting to get started.

In this article, we’ll cover:

  • What is a director identification number, and who needs one?
  • When do you need to apply for a director ID?
  • How do Australian founders apply for a director ID?
  • Do foreign founders need a director ID to set up an Australian company?
  • What do foreign directors joining an Australian board need to know?
  • How can a foreign director apply for a director ID online?
  • What if a foreign director cannot get a myID?
  • How do you certify identity documents from overseas?
  • What happens after you apply?
  • What should founders and boards do before appointing an overseas director?
  • Frequently asked questions

Let’s get into it.

What is a director ID number, and who needs one?

A director identification number, also known as a director ID or DIN, is a free, unique 15-digit identifier that ABRS issues to each company director. ABRS requires one from eligible officers of:

  1. A company, registered Australian body or registered foreign company under the Corporations Act 2001.
  2. An Aboriginal and Torres Strait Islander corporation registered under the CATSI Act.

This includes directors of a foreign company that is registered with ASIC and carries on business in Australia, regardless of where the director lives. Three further rules apply to every applicant:

  1. The director must be an individual aged at least 18.
  2. A person needs only one director ID for life, even if they later join other boards.
  3. Each director must apply personally, because nobody can apply on their behalf.

Directors who are new to the role may also want our guide to directors’ duties under the Corporations Act, which covers what the appointment involves once the ID is in place.

When do you need to apply for a director ID?

Anyone who will be a director must apply for a director ID before they are appointed, and can apply up to 12 months in advance. For a new company, that means before the registration application is lodged. For an existing company, it means before the appointment is made.

Australian residents can usually apply online in minutes, but applications from overseas can involve certified documents and international post, so the safest approach is to start as soon as the company establishment or board appointment is on the calendar. This matters most when an investor is taking a seat after a funding round, and our guides to priced equity rounds for Australian tech companies and venture capital investment in Australia explain how those appointments tend to come about.

If a director cannot apply by the date they need to, ABRS provides an application for an extension of time (form NAT75390). The request should be made before the director ID application itself, and directors living outside Australia can only lodge it by post.

How do Australian founders apply for a director ID?

For a founder living in Australia, the director ID is usually the quickest part of setting up a company. Most founders apply online through ABRS using a myID with at least a Standard identity strength, and receive their director ID on screen straight away.

The online application asks for the founder’s residential address as held by the Australian Taxation Office and details from two records, such as a notice of assessment or the bank account the ATO has on file, so it helps to have these ready.

A founder who cannot set up a myID can apply by phone, and ABRS will send a paper application if it cannot confirm their identity that way.

Once every proposed director has a director ID and has given written consent, the company can be registered with ASIC. The sections that follow, up to the checklist, are for founders and directors based outside Australia.

Do foreign founders need a director ID to set up an Australian company?

Only if they want to be a director. A foreign founder can own an Australian company without sitting on its board, but the company must have at least one director who ordinarily resides in Australia. That rule applies whatever the founder decides, so the first step is to work out who the resident director will be.

Appointing a resident director

A proprietary company must have at least one director who ordinarily resides in Australia, so a founder living abroad cannot be the sole director. The resident director can sit alongside the founder or be the company’s only director. They also need a director ID, although the online process is usually quicker for someone in Australia, and every proposed director must give written consent before the company is registered.

Where a founder has nobody in Australia to fill that seat, a resident director service, sometimes called a nominee director service, is a common solution. Corporate service providers, accounting firms and some law firms will supply an Australian-resident individual to sit on the board, typically for an annual fee.

This arrangement is convenient, but the role carries real responsibility. A nominee director carries the same duties and personal exposure as any other director, including liability for insolvent trading and, under the director penalty regime, for certain unpaid tax and superannuation. For that reason, providers usually ask for a deed of indemnity, directors’ and officers’ insurance and access to the company’s books before they sign a consent. Founders should also confirm what the director will and will not do, how quickly they will sign documents, what the fee covers, and how either side can end the arrangement without leaving the company in breach of the residency rule.

There are two alternatives to consider. First, a founder who plans to relocate, or who has a trusted employee or adviser already in Australia, may be able to fill the seat from within. Second, an overseas company that needs a local presence rather than a subsidiary can register with ASIC as a foreign company instead. That route requires a local agent rather than a resident director, though it brings reporting obligations of its own.

If the founder wants to be a director

A founder who is named as a director in the registration application, whether the company is a standalone start-up or the local subsidiary of an overseas parent, becomes a director when ASIC registers the company. Their director ID therefore needs to be in place before the application is lodged.

Paper applications from overseas involve certification, international post and manual processing, which can add several weeks to the timeline. For a founder who will be a director, the director ID should be one of the first steps in the incorporation process. The application steps are the same as for any other foreign director, and are set out below.

If the company needs to be set up quickly

Where the company needs to be registered before the founder’s director ID arrives, it can be set up with the resident director as its only director. The founder can hold the shares from the start and join the board once their director ID is issued, and the company then notifies ASIC of the new appointment within 28 days.

Founders who stay off the board, whether for now or permanently, should be aware that a person whose instructions the board is accustomed to follow can be treated as a director under the Corporations Act, with the same duties, even without a formal appointment.

What do foreign directors joining an Australian board need to know?

An overseas investor or executive joining the board of an existing Australian company follows the same application process as a foreign founder, without the set-up steps. The director ID must be in place before the appointment takes effect, so the board should build the application time into its timetable, particularly where the appointment is tied to a funding round or a completion date.

Once the appointment is made, the company notifies ASIC within 28 days. Before then, it is worth confirming that the board will still have at least one director who ordinarily resides in Australia. The steps below apply to foreign founders and foreign directors alike.

How can a foreign director apply for a director ID online?

Applying online is the fastest route. ABRS states that applicants outside Australia must apply online if they can set up a myID with at least a Standard identity strength, and should use the paper form only if they cannot.

A Standard-strength myID needs at least two of the following Australian identity documents:

  1. A passport, either current or not more than three years expired.
  2. A driver’s licence or learner’s permit.
  3. A birth certificate.
  4. A citizenship certificate.
  5. A Medicare card.
  6. A visa, used together with the foreign passport.
  7. An ImmiCard.

A foreign director who holds an Australian visa linked to their passport may be able to count it as one of the two documents. Once the myID is set up, the online application asks for details that relate to the director personally rather than to the company, including a residential address as recorded by the Australian Taxation Office and answers to questions drawn from records such as bank account or tax assessment details. 

A director with no Australian tax history is unlikely to pass these checks, so the paper route is usually the practical option.

What if a foreign director cannot get a myID?

A director who cannot set up a myID at Standard strength can apply on paper from outside Australia. 

This involves completing the Application for a director identification number for people living outside Australia (NAT 75433) and including certified copies of identity documents in one of these combinations:

  1. One primary document and one secondary document.
  2. Two primary documents.

Primary documents include a foreign birth certificate, a foreign passport, a full Australian birth certificate and an Australian passport. 

Secondary documents include a national photo identification card, foreign government identification, and a driver’s licence that shows the same address as the application. 

If a name has changed, the director should add a document linking the names, such as a marriage certificate or deed poll. A marriage certificate used for that purpose cannot also count as a secondary document.

How do you certify identity documents from overseas?

ABRS cannot return original documents, so only certified copies should be sent. Any document not in English also needs a certified English translation. Outside Australia, ABRS accepts only two kinds of certifier: a notary public, or staff at the nearest Australian embassy, high commission or consulate. A tax, BAS or ASIC agent cannot certify, and the ABRS identity verification page sets out the requirements in full. The certifier needs to:

  1. Sight the original document and the front and back copies at the same time.
  2. Sign each copy, and stamp it where possible, with wording confirming they have sighted the original and certify the copy as true and correct.
  3. Add their full name, phone number, qualification, registration number if relevant, and the date of certification.
  4. For multi-page documents, initial or sign the bottom of every page and number any pages that are not already numbered.

What happens after you apply?

Online applicants usually see their director ID on screen as soon as the application is approved. Paper applicants receive it by post at the address on the form. The number is kept for life, and once the director has it, the company can be registered or the appointment recorded with ASIC.

What should founders and boards do before appointing an overseas director?

The director ID is one step in a wider set of corporate housekeeping. Before incorporating or making the appointment, it is worth checking the following:

Board composition 

Our guide to registering a company in Australia notes that a proprietary company needs at least one director who ordinarily resides in Australia (a public company needs at least two), so confirm the board meets that requirement, both at incorporation and after any new appointment.

Governing documents

A company constitution sets out how directors are appointed and how the board operates, so check it allows for the appointment you have in mind.

Investor readiness

If the new director is joining as part of a raise, due diligence will usually look at who sits on the board and whether the paperwork is in order.

Group structure

Founders working across jurisdictions can find more on setting up and structuring your business.

Companies that also operate in the UK may want to see how the Australian process compares with the UK’s reforms in our Companies House guide.

Plan the appointment with Biztech Lawyers

For founders in Australia, a director ID is usually a short online process. From overseas, it is straightforward when the paperwork is ready and the certification is booked in good time. 

Biztech Lawyers supports founders and boards through the corporate steps around incorporation and board appointments, from company registration and governance documents to investor requirements. Book a meeting with our team to talk through your timeline.

Biztech Lawyers provides the material on its web pages for information purposes only, not as legal advice. We do not intend these web pages to create an attorney-client relationship with you, and you should not assume such a relationship or act on any material from these pages without seeking professional counsel. This website is considered attorney advertising in some jurisdictions. Prior results do not guarantee a similar outcome. In Australia, liability limited by a scheme approved under Professional Standards Legislation.
Anthony Bekker, Managing Director | APAC, Biztech Lawyers
Anthony Bekker

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Frequently Asked Questions

Is a director ID free?

How long does a director ID take?

Does a foreign founder have to be a director?

Can a foreign national be the only director of an Australian company?

Can the company be registered before the foreign founder has a director ID?

Can an accountant or agent apply on my behalf?

Do I need a new director ID for each company?

Is a DIN the same as a director ID?

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Whether you’re looking for advice in a particular jurisdiction or exploring how we can help expand your business, discover more below.