CIN Number – What is CIN(Corporate Identification Number), How To Obtain It, Definition, Utility

What is a CIN Number?

A CIN Number, which stands for Corporate Identification Number, serves as a distinctive identifier given to companies registered in India by the Registrar of Companies (ROC). The company’s registration certificate issues this 21-digit alpha-numeric code simultaneously. Various types of entities, including Private Limited Companies (PLCs), One Person Companies (OPCs), Government of India Companies, State Government Companies, Not-for-Profit organizations, and Nidhi Companies, among others, receive CIN Numbers when they register in India.

The ROC, operating under the Ministry of Corporate Affairs (MCA), administers the allocation of CIN Numbers. The registered entity contains vital information, and people use it to access detailed company information. Each state’s ROC is responsible for assigning CIN Numbers to companies registered within Its jurisdiction, making CIN Numbers an essential tool for tracking, and identifying businesses across India. 

The CIN Number includes crucial information about the organization’s registration:

• Listing status
• Industry code
• State Code
• Year of incorporation
• Ownership
• Registration number

How to interpret a CIN Number

The company issues the CIN Number format standardized to simplify interpretation, consisting of six key aspects that provide details about the company.

1. Listing status: The first letter of the CIN code indicates the listing status. ‘L’ signifies that the company is listed on the stock market, while ‘U’ indicates that the company is unlisted or not listed.
2. Industry code: Following the listing code, there are five numbers that represent the Industry code. These numbers align with the industry of the company according to the Registrar of Companies Industry Code. Industry codes are categorised into sections, divisions, groups, classes, and sub-class, providing a detailed classification of the company’s industry.

Here are some examples of ROC industry codes used in Company Registration Numbers or CIN Numbers are as follows: 

Sr. no	Industries	Code
1	Hospitals	851100
2	Motor vehicles freight transport	60231
3	Contract basis real estate activities	70200
4	Retail sale of construction materials	52341
5	Mineral water manufacture	15543
6	Farming of, cattle, sheep, goats, asses, hinnies, mules, horses, dairy farming	01211
7	Travel agencies, tour operators	63040
8	Production, Supply, and documentation of ready-made software	72211

3. State code: The CIN Number’s third aspect is the state code, typically consisting of two characters, generally positioned in the 7th and 8th places of the CIN Number. This code identifies the state company’s origin state. For instance, TN represents Tamil Nadu, MH represents Maharashtra, KL represents Kerala, KA represents Karnataka, and so on.
4. Year of incorporation: The year of incorporation is the next detail found in the CIN Number, occupying positions 9 to 12. It includes all four digits of the year of the company’s incorporation.
5. Ownership status of the company: After the year of incorporation, the CIN Number reveals the ownership type using three alphabets, usually in the 13th, 14th, and 15th positions. 

The abbreviations used for different ownership statuses are as follows:

• Private Limited Company – PTC
• Public Limited Company – PLC
• Companies owned by the Government of India – GOI
• Companies owned by State Government – SGC
• Financial Lease Company (as Public Limited) – FLC
• General Association Public – GAP
• General Association Private – GAT
• Not For Profit License Company – NPL
• Public Limited Company (unlimited liability) – ULL
• Private Limited Company (unlimited liability) – ULT
• Subsidiary of a Foreign Company – FTC

6. Registration Number: Finally, the CIN Number concludes with a six-digit registration number provided by the Registrar of Companies. These numbers occupy positions 16 to 21 in the CIN Number and are unique to each registered company.

For example, a CIN Number like L21091KA2019OPC141331 signifies that the company is listed, engaged in the manufacture of paper hoops and cones, incorporated in Karnataka in the year 2019, classified as a one-person company, and has a registration number ‘141331’ assigned by the Registrar of Companies. 

How to get CIN:

To obtain a Corporate Identification Number (CIN) in India, you need to follow a specific process as outlined below: 

1. Application Filing: 

The initial step is to file an application for CIN number registration. You can complete this process online through the Ministry of Corporate Affairs (MCA) portal.

2. Verification and Approval: 

After receiving your application, the Registrar of Companies (RoC) in the relevant state will verify and process it. During this stage, the RoC may request additional information or documents to ensure the accuracy of the application. They might also conduct a physical verification of the registered office address to confirm its legitimacy. 

3. Certificate Issuance: 

Upon satisfaction with your application and meeting all necessary requirements, the RoC (Registrar of Companies) will issue a certificate of incorporation to your company. This certificate includes a unique CIN Number, which serves as proof of your company’s registration and legal identity.

4. Post-Incorporation Compliance:

After receiving the CIN, your company must adhere to various post-incorporation compliance obligations. These may include obtaining a Permanent Account Number (PAN), registering for Goods and Services Tax (GST), and opening a bank account, among other necessary legal and financial activities.

It is essential to follow these steps diligently to ensure that your company is properly registered and compliant with all legal requirements. The CIN is a critical identifier for your business and is automatically assigned upon successful incorporation and approval by the Registrar of Companies.

According to Section 7(3) of the Companies Act, 2013, when a company is officially incorporated and granted a certificate of incorporation as specified in sub-section (2), the Registrar of Companies will automatically assign a Corporate Identity Number to that company. This CIN number serves as a unique and distinct identifier for the company and is also included in the certificate of incorporation. In simpler terms, the Registrar of Companies approves and officially registers your company, and you receive a CIN Number as part of the process.

How to check a company’s CIN Number?

To locate a company’s Corporate Identification Number, you can follow these steps on the MCA website: 

1. Visit the MCA website.

2. Click on the ‘MCA Services’ tab located on the homepage.

3. From the drop-down list under the ‘Company Services’ option, select ‘Find CIN.’

4. Choose the ‘Search Based on Existing Company / LLP Name’ option.

5. Enter the company’s name in the ‘Existing Company’ field, input the captcha code, and then click the ‘Search’ button.

6. However, the maximum however, the maximum penalty for this non-compliance is around INR 1,00,000 penalty for this non-compliance caps at INR 1,00,000. 

Factors that lead to a change in CIN Number

The Corporate Identification Number for a company typically remains the same after it has been assigned. However, certain circumstances may add to a change in the CIN Number:

• Change in Listing Status: If a company transitions from being listed on the stock market (L) to becoming unlisted (U), or vice versa, it may result in a change in the CIN Number.
• Change in Registered Office Location or State: If a company decides to relocate its registered office within India, especially to a different state, it may necessitate a change in the CIN Number to reflect the new state code in the CIN.
• Change in Industry: If the primary industry or business activity of the company undergoes a significant change, it might lead to a change in the Industry Code within the CIN.
• Change in Sector: Similarly, if the company’s sector changes substantially, this could also prompt a modification in the CIN, particularly if it results in a change in the Division or Group within the Industry Code.

Benefits of Obtaining a Corporate Identification Number

The Corporate Identification Number is issued to monitor and track all the activities and various aspects of a company, starting from its incorporation. Regardless of the nature of transactions or dealings a company has with the Registrar of Companies, providing the CIN is a fundamental requirement.

Here are the key benefits of having a Corporate Identification Number for a company: 

1. Legal Compliance: A CIN is a mandatory requirement under the Companies Act, 2013 for all registered companies in India. Compliance with this regulation ensures that the company operates within the legal framework. Failure to have a CIN can result in penalties and fines, potentially impacting the company’s financial health.

2. Business Identification: In a competitive business environment, a CIN distinguishes a company from others operating in the same sector. It enhances the company’s brand and reputation by making it easily identifiable to customers and stakeholders. This can lead to increased trust and business opportunities. 

3. Access to Credit: Financial institutions like banks and non-banking financial companies (NBFCs) often require a company’s CIN as part of the business loan application process. Having a CIN is essential for a company seeking credit, facilitating Its growth and expansion plans by ensuring access to financing.

4. Compliance with Tax Regulations: Companies in India must adhere to various tax regulations, including GST, income tax, and TDS. A CIN is necessary for tracking transactions related to these taxes and ensuring compliance. It helps prevent penalties and legal issues associated with non-compliance with tax regulations. 

5. Corporate Governance: CIN plays a crucial role in corporate governance by promoting transparency and accountability in a company’s interactions with stakeholders. It is in official documents like invoices, letterheads, and annual reports, ensuring that all transactions are properly recorded and traceable, which is essential in case of discrepancies or audits. 

6. Identification and Tracking: CIN serves as a unique identifier for a company, making it easier to track and identify companies registered under the Registrar of Companies. Various documents such as invoices, bills, notices, and official publications require it, facilitating smooth identification and tracking of businesses and also when applying for business loans.

Usage of CIN Number

The CIN Number serves more purposes than just giving a company a unique identity or verifying it’s authenticity. It is also necessary for various business-related tasks, like filing GST. Additionally, you may have to include your specific CIN Number on several documents, such as:

Here is a list of instances where a CIN Number is used:

• 1. On invoices, e-bills, and receipts.
• 2. On notices, memos, and letterheads.
• 3. In business letters and billheads.
• 4. In annual reports and audits.
• 5. When submitting e-forms on the official MCA website.
• 6. While collaborating with other organizations through email.
• 7. In official publications of the organization, such as books and financial results.
• 8. In other company publications like journals and periodicals.

Documents Required to Apply for CIN Number

To apply for a CIN Number, you must provide specific documents to the authorities as part of the registration process. You must submit these crucial documents along with your application form for company registration. The required documents for applying for a CIN are as follows:

1. Digital Signature Certificate (DSC) of all Directors.

2. Director Identification Number (DIN) of all Directors.

3. Company Name.

4. Identity Proof for all directors.

5. Address Proof for both directors and the company’s premises.

6. Utility Bills for the premises (not older than 2 months).

7. Photographs of the directors.

Your designated relationship manager will guide and assist you in obtaining and submitting these necessary documents.

Eligibility criteria for obtaining a Corporate Identification Number

The criteria for obtaining a Corporate Identification Number encompass the following details:

1. The applying company must register by the Companies Act, 2013, or relevant Indian laws. It can be registered as a Private Limited Company, Public Limited Company, Limited Liability Partnership, One Person Company, or any other government-recognized legal entity.
2. Business Operations: The company must be actively engaged in business activities within India. Companies that register themselves under the Ministry of Corporate Affairs plus have a legitimate business presence in India get to use to CIN number.
3. Company Status: The company should maintain an active status with the Registrar of Companies (RoC). Companies that have been scrapped or dissolved are not eligible for a CIN Number.
4. Compliance with Legal Requirements: The applying company must adhere to all legal requirements mandated by the Ministry of Corporate Affairs and the Registrar of Companies (RoC). This includes the timely submission of annual returns, financial statements, and other mandatory documents.
5. Valid Identification Documents: The applicant must furnish valid identification documents, such as an Aadhaar card, PAN card, passport, or driver’s license, depending on the type of legal entity.
6. Payment of Fees: The applicant must make the payment for the fees for CIN issuance. The fee amount may vary based on the legal entity type and the chosen application mode.

By meeting this criteria, the applicant company becomes eligible to obtain a Corporate Identification Number from the Ministry of Corporate Affairs, Government of India.

Penalty for Non-compliance

Penalty for Non-compliance Regarding CIN Mention:

Failure to comply with the requirements mentioned earlier results in penalties. The defaulting company and its officers in default are liable for a penalty of INR 1,000 per day as long as the default persists. However, the authorities cap the maximum penalty for this non-compliance at INR 1,00,000.

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FAQs

Q. 1: What distinguishes the CIN Number in GST from the CIN Number of the company?

A: Banks generate the Challan Identification Number (CIN) in GST, which is for tracking payments to government accounts. In contrast, the CIN for a company refers to the Company Identification Number in India. 

Q. 2: Who needs a CIN Number? 

A: All companies incorporated under the Companies Act 2013 require a CIN. This includes Private Limited Companies, One Person Companies, Section 8 Companies, Producer Companies, and Nidhi Companies. 

Q. 3: How can you locate your CIN Number? 

A: To obtain your CIN, you will need to acquire a Digital Signature Certificate (DSC), and Director Identification Number (DIN), get your company name approved, and file incorporation documents, including the Memorandum of Association and Articles of Association with the Company.

Q. 4: Is the CIN Number synonymous with the registration number?

A: No, the last six digits of the CIN represent the company’s registration number issued by the Registrar of Companies. Note that Limited Liability Partnerships (LLPs) use LLPIN, and a company’s CIN differs from It’s GSTIN.

Q. 5 How can you verify a CIN Number?

A: Verify a CIN by visiting the MCA website, clicking on “View Company or LLP Master Data” under Master Data, entering the CIN Number, and submitting along with the Captcha code.

Q. 6: Is a CIN necessary for a proprietorship company?

A: Yes, a proprietorship company requires a Corporate Identification Number because CINs apply exclusively to companies incorporated under the Companies Act.

Q. 7: What’s the procedure for obtaining a CIN in India?

A: The process involves filing a registration application with the Ministry of Corporate Affairs (MCA), verification and approval by the Registrar of Companies (RoC), issuance of a certificate of incorporation with a unique CIN Number, and compliance with post-incorporation requirements.

Q. 8: How long does it typically take to obtain a CIN number in India? 

A: The timeframe varies based on application completeness, document accuracy, and RoC workload. On average, it takes approximately 7-10 working days to secure a CIN.

Q. 9: Can a foreign company acquire a CIN in India?

A: Yes, a foreign company can obtain a CIN number by registering as a subsidiary or branch office under the Foreign Exchange Management Act (FEMA).

Q. 10: What are some of the post-incorporation compliance obligations for a company with a CIN number? 

A: Post-incorporation compliance includes receiving a Permanent Account Number (PAN), Goods and Services Tax (GST) registration, opening a bank account, and adhering to statutory as well as regulatory requirements.