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What is Corporate Identification Number: A Detailed Guide

Writer's picture: Nimisha PandaNimisha Panda

Companies registered in India are given a unique identification number called Corporate Identification Number (CIN). This number is by the Registrar of Companies (ROC). When businesses obtain their Registration Certificate, the ROC provides them with the CIN. A company's CIN is crucial because it is listed on all forms submitted to the Ministry of Corporate Affairs (MCA), especially audits and reports. This guide provides a comprehensive overview of the Corporate Identification Number (CIN) along with the steps to obtain it.

 

Table of Contents:

 

What is a Corporate Identification Number?

A 21-digit alpha-numeric code known as the Corporate Identification Number (CIN) is given to domestically incorporated businesses upon registration by the ROC located in various Indian states under the MCA.

All Indian-registered businesses are given a CIN, including:

  • One Person Companies (OPCs) 

  • Private Limited Companies (PLCs)  

  • Businesses owned by the Indian government

  • Companies of the State Government  

  • Nidhi Companies, 

  • Non-Profit Section 8 Companies, etc.

However, limited liability partnerships (LLPs) registered in India do not receive CINs. The LLPIN (Limited Liability Partnership Identification Number), which serves as the LLP's distinct seven-digit identification number, is provided by the ROC to LLPs.


Components of a Corporate Identification Number

Information about the company is represented and provided by the 21-digit CIN. There are six distinct elements of the CIN. The CIN in the example can be decomposed as follows:


  • Section 1: L is the initial character

  • Section 2: 01631 is the following five numbers

  • Section 3: The following pair of letters: KA

  • Section 4: The following four numbers: 2010

  • Section 5: PTC, the following three characters

  • Section 6: 096843, the final six numbers


The following details provided in each Section are:

Section 1: Indicates whether a specific company is "Listed" or "Unlisted" on the Indian stock market according to the first character of the CIN. It implies that the initial character suggests the stock market listing status.  A listed company's CIN would begin with the letter "L," and an unlisted company's CIN would start with "U."


Section 2: Contains the following five numerical digits that classify a company's economic activity or the industry to which it belongs. The type of economic activity that such an establishment would engage in determines this classification. The Ministry of Corporate Affairs (MCA) assigns a number to each industry or category.


Section 3: The following two letters indicate the Indian state which registers the business. For example, KA stands for Karnataka, MH for Maharashtra, DL for Delhi, etc. It functions similarly to the vehicle's registration number.


Section 4: Contains the following four digits representing the year a company was incorporated.


Section 5: The three letters that follow indicate the company classification in Section 5. These three letters aid in determining if a business is a public limited company or a private limited company. If this company's CIN is FTC, it indicates that it is a subsidiary of a foreign company; if it is GOI, it shows that the Indian government owns the company.


Section 6: The remaining six digits in Section 6 represent the registration number supplied by the relevant Registrar of Companies (ROC).


Key Abbreviations in CIN

Section 5 of the CIN uses the following abbreviations:


  • FLC: Public Limited Financial Leasing Company

  • FTC: A Foreign Company's Private Limited Company Subsidiary

  • General Association Private (GAT)  

  • General Association Public (GAP)

  • GOI: Government of India-owned businesses

  • NPL: Section 8 Company, or 

  • One Person Company, or OPC

  • Public Limited Company, or PLC

  • Private Limited Company, or PTC

  • SGC: State Government-owned businesses

  • ULL: Unlimited Liability Public Limited Company

  • ULT: Unlimited Liability Private Company


Importance of Corporate Identification Number

  • A CIN is provided on all transactions with the relevant ROC and is used to track all of a company's activities and aspects from the time of incorporation.


  • The 21-digit CIN has a unique meaning. It is simple to translate and helps locate the fundamental information related to the company. It identifies the information about businesses registered under the MCA in the nation.


  • Companies can be identified or tracked using their CIN, a unique number that ROC and MCA hold for various information. An organisation's identity and other details about the registered business under the ROC are mentioned in the CIN.


An instance of a distinct CIN issued by the ROC is L01631KA2010PTC096843.


Where is a CIN Used

The Corporate Identification Number quoted on several documents by any business that is based in India, including:

  • On receipts, bills, and invoices

  • Observance

  • Regarding memos

  • Letterheads

  • Audits and Annual Reports

  • All electronic forms submitted through the MCA portal 

  • The official publications of the company

  • Any additional publications from the company


Steps to Obtain a Corporate Identification Number

The easy procedures you must follow in order to receive a CIN are listed below:


Step 1: Pick a Name: A distinctive name for the business should be chosen. Verify that it complies with legal requirements.


Step 2: Choose Company Type: Pick a business model that works for your company.


Step 3: Obtain a Digital Signature Certificate and Director Identification Number (DSC).


Step 4: Reserve your preferred name to guarantee that your chosen name is exclusive, reserve it.


Step 5: Draft and create documents, such as the Articles of Association (AOA) and the Memorandum of Association (MOA). These documents should include the objectives and policies.


Step 6: Apply and Pay: Send your application and the necessary funds to the ROC.


Step 7: Obtain CIN: After the RoC has reviewed your application and granted it, you will receive a Certificate of Incorporation (COI) that contains your CIN and attests to the registration of your business.


To ensure legal compliance, all businesses registered for GST must obtain a CIN number. It must be included on all documents. Contact our tax professionals if you require assistance with GST filing or registration.


Changing Corporate Identification Number

The CIN, given to each registered business for identification purposes, may be altered in specific circumstances, including:

  • Any modification to a company's listing status 

  • Any transition in the state or location of the company's registered office

  • Any change in the sector or industry a company operates in


Penalty for Non-Compliance of Mentioning CIN

If the previously stated conditions are not fulfilled, the defaulting company faces a penalty of INR 1,000 per day, and all of its officers are in default as long as the default persists.  The maximum fine for this default, however, is INR one million.


Conclusion

Ensuring to comply with the necessary regulations is crucial when incorporating a business. Completing the registration process in its entirety is one example of such compliance. The issuance of a Corporate Identification Number (CIN) is one step in the registration process. As you continue to run your business, CIN can be very helpful for several reasons.


FAQ

Q1. Is CIN mandatory to be mentioned on the invoices, bills, and receipts of a company?

Yes. According to the Companies Act's section 12(3)(c), a business must print its name, registered office address, and CIN on all business correspondence, billheads, letter papers, notices, and other official publications. Therefore, a business's CIN is included in all its invoices, bills, receipts, and emails to third parties.


Q2. How to apply for CIN?

A CIN is an alphanumeric number the Registrar of Companies assigns to a company. The company's Certificate of Incorporation includes a reference to its CIN. As a result, upon incorporation and Registrar of Companies approval, a CIN number is automatically assigned to the business.


Q3. How to read a CIN number?

The company's listing status is revealed in the first section with an "L" for listed and a "U" for unlisted. The following five-digit section is the industry code, a unique identification number that the ROC assigns based on the industry in which the business operates.


Q4. Who is eligible for a CIN number?

Public and private limited companies incorporated in India are eligible to receive a Corporate Identification Number (CIN). However, sole proprietorships and partnership firms need not have a CIN. Similarly, LLPs are not eligible to receive a CIN number. 


Q5. How can I find my company's CIN number?

The steps listed below will help you locate a company's CIN on the MCA website:

  • Visit the website of the MCA.

  • On the main page, select the "MCA Services" tab.  

  • From the drop-down menu under the "Company Services" option, select the "Check CIN" option.  

  • Choose "Search Based on Existing Company / LLP Name."

  • In the "Existing Company" field, type the company logo, input the captcha code, and press the "Search" button.

  • It will display the company's CIN.


Q6. Is CIN allotted to LLP?

No. The Registrar of Companies assigns an LLPIN (LLP Identification Number) to a Limited Liability Partnership (LLP) and a CIN to a registered company. Therefore, LLPs are not eligible for CINs; only companies registered under the Companies Act of 2013 are.


Q7. Are CIN and GST the same?

No. When a company registration certificate is issued, the Registrar of Companies assigns a CIN to the registered company as an identification number. In contrast, companies and businesses registered under the GST law are assigned an identification number known as the GSTIN. Both are distinct and serve different purposes.


Q8. What is CIN verification?

All Indian-registered companies are allotted a Corporate Identification Number, or CIN, by the Registrar. It's a secret identification number provided in the registration document.


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