ABRS is running a compliance blitz against foreign directors without Director IDs. The penalties are severe. Here is everything Indian nationals need to know to protect their Australian companies.
The Australian Business Registry Services (ABRS) has confirmed a targeted compliance enforcement campaign for 2026, focusing specifically on foreign directors of Australian companies who have not yet obtained their Director Identification Number (Director ID). For Indian nationals who are directors of Australian Pty Ltd companies, subsidiaries, or public companies, this is not a distant regulatory concern — it is an immediate compliance obligation with serious personal and corporate consequences for those who continue to delay.
This guide explains what a Director ID is, why the 2026 enforcement action is different from previous years' softer compliance approaches, what the specific penalties are, and — most practically — exactly how an Indian national who does not have an Australian tax record can apply for and obtain a Director ID from India.
A Director Identification Number (Director ID) is a unique 15-digit identifier permanently assigned to an individual who is or has been a director of an Australian company, registered Australian body, or registered foreign company. Unlike company numbers or ABNs, a Director ID belongs to the individual — not the company — and stays with that person for life, regardless of how many companies they direct or how often companies are formed, dissolved, or changed.
The Director ID was introduced under the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020. Parliament's purpose was to eliminate "phoenixing" activity — the practice of directors winding up insolvent companies and starting new ones to avoid creditor obligations — by creating an immutable link between a natural person and every directorship they hold or have held. A Director ID makes it impossible for a director to use false or assumed identities across different companies.
The application deadline for existing directors passed on 30 November 2022 for most categories of directors. Any individual appointed as a new director after that date must obtain their Director ID before, or in some cases within 28 days of, their appointment. There are no grace periods remaining for existing directors who failed to apply.
In the period from 2022 to 2025, ABRS enforcement was characterised by a relatively gentle compliance-assistance approach. The ABRS issued reminder notices, provided online guidance, extended deadlines, and focused enforcement energy on deliberate fraud cases rather than inadvertent non-compliance. For Indian directors who were genuinely unaware of their obligations or who faced practical difficulties applying from overseas, this softer enforcement environment provided some de facto protection.
The 2026 enforcement posture represents a deliberate policy shift. The ABRS has now had over three years to educate directors about the Director ID requirement, to make application processes available, and to identify non-compliant individuals through cross-matching company registry data with the Director ID database. Directors who remain non-compliant at this stage are, in the ABRS's assessment, either deliberately avoiding the requirement or negligently ignoring repeated official communication.
The ABRS has confirmed that it will use data-matching tools to identify the universe of company directors who do not have Director IDs on file, prioritising active directors of currently registered companies. Companies with non-compliant directors will receive formal notices, and if those directors do not apply promptly following notice, the ABRS will escalate to penalty proceedings.
Critically, the 2026 enforcement campaign specifically targets foreign directors — those without Australian tax records who cannot use the myGovID online application system — because this is the group with the highest rates of non-compliance. Indian nationals who are directors of Australian subsidiaries of Indian companies form a significant portion of this population.
Every individual who is an "eligible officer" of an "eligible body" must have a Director ID. In practical terms, this covers:
For Indian companies that have registered their Australian subsidiary with a board that includes Indian resident directors, every such director needs a Director ID, regardless of whether they have ever visited Australia. The obligation follows the directorship, not the director's physical location.
Many Indian nationals who were appointed as directors of Australian subsidiaries in 2020, 2021, or 2022 — during the rapid expansion of India-Australia commercial relationships — proceeded with their appointments and began fulfilling their directorial duties without applying for a Director ID. Some were told by their service providers that the deadline did not apply to them because they were overseas. Others simply were not informed of the requirement at the time of appointment. In all cases, these individuals are now in breach of the Corporations Act.
Under the 2026 enforcement framework, the consequences of continuing non-compliance are:
The standard Director ID application process uses myGovID — Australia's digital identity verification system. MyGovID requires applicants to verify their identity using Australian government-issued identity documents linked to Australian tax records: a Tax File Number (TFN), an Australian passport, or an Australian driver's licence. Indian nationals who have never worked, studied, or lodged a tax return in Australia will not have a TFN or Australian-issued identity documents, and therefore cannot complete the myGovID verification process.
This creates a genuine accessibility problem that the ABRS has addressed — but only through a paper-based application process that requires physical certified copies of identity documents to be mailed from India to Australia. Many Indian directors and their Australian advisers are unaware of this paper process, and the lack of awareness has contributed significantly to the high rate of non-compliance among foreign directors.
The paper application process for Director IDs for individuals who cannot use myGovID is available through the ABRS. The process is more involved than the online version but is straightforward when followed correctly. Here are the exact steps:
Form NAT75329 is the "Application for a director identification number" for individuals who are unable to apply online. Download the current version of this form directly from the ABRS website. Ensure you have the most recent version, as the form is periodically updated.
Fill in all required fields, including your full legal name exactly as it appears on your passport, your date of birth, your residential address (your current address in India is acceptable), and your contact details. If you are applying on behalf of a specific company, you may include the company's ACN for reference, though a Director ID belongs to you personally rather than to the company.
The ABRS requires certified copies of identity documents that confirm your identity and residency. For Indian nationals, acceptable primary identity documents typically include:
This is the most critical step and the one where many applications fail due to incorrect certification. The ABRS requires that copies of your identity documents be certified by one of the following:
Mail the completed Form NAT75329 together with your certified identity document copies (do not send original documents) to the ABRS. Use a tracked and signed-for international mailing service (such as DHL, FedEx, or India Post EMS Speed Post) and retain proof of postage. Ensure you retain a complete copy of everything you submit before mailing.
The ABRS typically processes paper Director ID applications within 28 days of receipt. You will receive your Director ID by post or email to the contact address you provided on the application form. Once issued, your Director ID is permanent and does not require renewal.
Based on our experience assisting Indian directors with this process, the most common reasons for application rejection or delay are:
Incomplete certification: The most frequent error. The certifying official must include their full name, their qualification (e.g., "Notary Public"), their registration or licence number where applicable, the date of certification, and their seal or stamp. Missing any of these elements results in the certification being rejected by the ABRS.
Name discrepancy: If your name is spelled differently in your application than in your identity documents (even minor variations such as a hyphenated versus unhyphenated name, or initials versus full first name), the ABRS may reject or query the application. Use your name exactly as it appears in your passport on every line of the form.
Expired passport: The ABRS requires that identity documents be current and valid at the time of application. An expired passport, even if recently expired, is not acceptable.
Sending originals instead of certified copies: The ABRS processes paper applications and does not return original documents. Never send your original passport. Always have certified copies made and mail the copies.
Using an old version of Form NAT75329: The form is updated periodically. Using an outdated version may result in the application being returned as incomplete.
Once you have received your Director ID, notify your company's company secretary or registered agent immediately so that your ID can be recorded in the company's registers and updated with ASIC where required. Your Director ID should also be communicated to any other Australian company of which you are a director, so that it can be recorded across all your directorships.
Importantly, do not provide your Director ID to anyone other than the company you are directing and its authorised service providers (registered agents, company secretaries). Director IDs should be treated as sensitive personal information and protected accordingly.
If you were appointed as a director before 30 November 2022 and have not yet obtained a Director ID, you are in breach of the Corporations Act and should apply immediately. There is no grace period available at this point. The sooner you apply, the sooner you eliminate the compliance risk associated with non-compliance — and the more favourably your situation will be viewed by the ABRS if your case comes to their attention during the enforcement campaign.
In some cases, a voluntary disclosure approach — where the director proactively contacts the ABRS to explain the circumstances of the delay and immediately applies — may be treated more favourably than a director who applies only after receiving an enforcement notice. CorpArray can advise on the appropriate approach based on your specific circumstances.
Do I need a separate Director ID for each Australian company I direct? No. A Director ID is linked to you as an individual, not to a specific company. One Director ID covers every Australian company of which you are a director, past and present. You apply once and the number remains yours permanently.
My appointment as director was made before the November 2022 deadline but I only recently found out about the Director ID requirement. Am I still at risk? Yes. The obligation applied from the date of your appointment (or the deadline, whichever was later). Ignorance of the requirement is not a legal defence to a strict liability breach of the Corporations Act. However, the ABRS's enforcement focus in 2026 is on directors who have received notices and not acted, rather than those who self-identify and apply promptly. Apply as soon as possible.
Can the company itself be penalised if its director doesn't have a Director ID? Yes. Under the Corporations Act, a company that appoints or allows to act a person who does not have a Director ID when required is itself in breach and can face civil penalties. This is in addition to any penalties imposed on the director personally.
What if I am both an Indian resident director and have a company that is a director of an Australian subsidiary? Australian law requires directors to be individuals — corporate directors are not permitted for Australian proprietary companies. If the current corporate structure attempts to use an Indian company as a director of an Australian Pty Ltd, that arrangement is invalid under the Corporations Act and must be corrected immediately by appointing individual natural persons as directors.
How long does the paper application take from India? From the date of posting your certified application to the ABRS in Australia, allow approximately 4–6 weeks for transit (using tracked international courier), processing, and return of your Director ID. Using a fast courier service (DHL Express, FedEx Priority) rather than standard post significantly reduces transit time and is recommended given the 2026 enforcement timeline.
CorpArray offers a Director ID Application Review Service for Indian nationals. We review your completed Form NAT75329, verify that your certification meets ABRS standards, and flag any errors before you mail the application — significantly reducing the risk of rejection. Given the stakes involved in the 2026 enforcement campaign, this is one compliance investment that pays for itself immediately.
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