Get to Know About CIN Number in Detail

In India, every registered company receives a unique identification number from the Registrar of Companies, under the Ministry of Corporate Affairs. This number is known as the Corporate Identification Number (CIN). It holds important details about the company’s registration type, category, and location. The CIN helps maintain transparency to track company activities and ensures that businesses follow all necessary legal rules and regulations. In this blog, you will learn get to Know About CIN Number in Detail

What is a Corporate Identification Number (CIN)?

A Corporate Identification Number (CIN) is a unique 21-character alphanumeric code assigned to every company registered in India. This code is issued by the Registrar of Companies (RoC) under the Ministry of Corporate Affairs (MCA). This code serves as a company’s official ID and is used for legal and financial tasks. It helps to keep track of a company’s compliance and records easily.

Importance of Corporate Identification Number

Here is the key importance of Corporate Identification Number (CIN):

• Legal Identity and Compliance

The CIN serves as the official identifier for a company. This confirms its legal existence and registration under the Companies Act, 2013. It is mandatory to mention the CIN on all official documents, including invoices, letterheads, and e-filings. This helps to maintain transparency and compliance with regulatory requirements.

• Regulatory Tracking and Monitoring

Regulatory authorities utilize the CIN to monitor a company's compliance with statutory obligations, such as filing annual returns and financial statements. This tracking mechanism aids in maintaining corporate governance and accountability.

• Public Access to Company Information

The Corporate Identification Number (CIN) helps investors, creditors, and the public easily access key company details through the MCA’s Master Data portal. This includes information like company status, directors, charges, and financial filings. It supports transparency and helps people make informed decisions about the company.

• Facilitation of Corporate Transactions

Incorporating the CIN in business transactions helps clearly identify the companies involved, which reduces the risk of errors or fraud. It also makes processes like mergers, partnerships, and acquisitions smoother by providing a reliable reference point.

• Support for Data Analytics and Policy Formulation

The structured format of the CIN allows for efficient data collection and analysis by the Ministry of Corporate Affairs (MCA). This facilitates the development of informed policies and regulatory frameworks. It helps businesses to operate and improve the overall business environment in India.

Components of a Corporate Identification Number (CIN)

Here are the key components of a Corporate Identification Number (CIN):

1. Listing Status (1 character)

The first character of the CIN shows if a company is “listed” or “Unlisted” on the stock exchange. 'L' means listed, while 'U' means unlisted.

2. Industry Code (5 digits)

The next five digits represent the industry of the company that depends on the National Industrial Classification (NIC) code. This code helps to identify the primary business activity of the company.

3. State Code (2 characters)

The two characters following the industry code in the CIN represent the state or union territory where the company is registered. Each region in India is given a unique code for identification. For example, KA stands for Karnataka, MH for Maharashtra, and DL for Delhi.

4. Year of Incorporation (4 digits)

The following four digits indicate the year in which the company was incorporated. This helps in identifying the age of the company.

5. Ownership Type (3 characters)

The next three characters in the CIN indicate the type of company ownership. For example, PLC stands for Public Limited Company, PTC for Private Limited, LLC for Limited Liability, FLC for Foreign Company, FCR for Foreign Company Registration, etc.

     6. Registration Number (6 digits)

The final six digits are a unique registration number given to each company by the Registrar of Companies (RoC). This special number helps identify and distinguish one company from another in India.

For example, in the CIN L01631KA2010PTC096843:

• L: Listed company
• 01631: Industry code
• KA: State code for Karnataka
• 2010: Year of incorporation
• PTC: Private Limited Company
• 096843: ROC registration number

Abbreviations in CIN Number

Here are the abbreviations used in the Section 5 of the Corporate Identification Number (CIN):

• FLC: Financial Lease Company as Public Limited
• FTC: Subsidiary of a Foreign Company as a Private Limited Company
• GAP: General Association Public
• GAT: General Association Private
• GOI: Companies owned by the Government of India
• NPL: Not-for-Profit License Company (Section 8 Company)
• OPC: One-Person Company
• PLC: Public Limited Company
• PTC: Private Limited Company
• SGC: Companies owned by the State Government
• ULL: Public Limited Company with Unlimited Liability
• ULT: Private Company with Unlimited Liability

Usage of Corporate Incorporation Number

Here are the key uses of Corporate Identification Number (CIN):

• Mandatory Disclosure on Official Documents

According to the Companies Act, 2013, every company must include its Corporate Identification Number (CIN) on all official documents like letterheads, invoices, notices, annual reports, and e-forms submitted to the Ministry of Corporate Affairs (MCA). This rule helps maintain transparency and makes it easier for anyone to identify the company in official documents and communications.

• Verification and Due Diligence

The Corporate Identification Number (CIN) helps stakeholders like investors, creditors, and regulatory authorities check a company’s background. By entering the CIN on the MCA Master Data Portal, anyone can view details such as registration info, directors, charges, and filing status. This helps to make smart decisions and understand any potential risks.

• Regulatory Filings and Compliance:

The Corporate Identification Number (CIN) is required for many filings with the Ministry of Corporate Affairs (MCA), such as annual returns, financial reports, changes in directors, or updates in share capital. Using the correct CIN helps ensure that these documents are processed smoothly and without delays.

• Legal Proceedings and Documentation

In legal matters, the Corporate Identification Number (CIN) acts as the company’s official identity. It is used in court cases, contracts, notices, and other legal documents. This clear identification helps avoid confusion, ensures accuracy, and prevents any chances of misrepresentation in legal proceedings or official communications.

• Tracking Company Status and Changes

The Corporate Identification Number (CIN) helps track a company’s current status, such as whether it is active, dormant, under liquidation, or has been struck off. This information is important for stakeholders to understand the company’s operational and legal position.

Who Needs a CIN?

Here is the list of entities that require a CIN:

• Private Limited Companies (Pvt Ltd): Businesses with limited liability and restrictions on share transfers.
• Public Limited Companies (Ltd): Companies that can offer shares to the public and have limited liability.
• One-Person Companies (OPC): Entities with a single shareholder which is introduced to encourage individual entrepreneurship.
• Section 8 Companies: Non-profit organizations established for promoting commerce, art, science, or other charitable objectives.
• Nidhi Companies: Mutual benefit societies recognized under Section 406 of the Companies Act, 2013.
• Government-Owned Companies: Government-owned companies include those where either the central or state government holds a major share. Central government companies are owned by the national government, while state government companies are controlled by individual states.

Entities that Do not Require CIN

Listed below are the entities that do not need CIN:

• LLPs (Limited Liability Partnerships)

LLPs do not receive a Corporate Identification Number (CIN). Instead, they receive a Limited Liability Partnership Identification Number (LLPIN) from the Ministry of Corporate Affairs. The LLPIN serves as their official identity for legal, tax, and regulatory purposes. MCA issues this number at the time of incorporation under the Limited Liability Partnership Act, 2008.

• Sole Proprietorships

A sole proprietorship does not form a separate legal identity from its owner. It does not come under the control of the Ministry of Corporate Affairs. The business and the individual exist as a single entity. The owner uses personal PAN and bank account to operate the business. No CIN or LLPIN applies to sole proprietorships.

• Partnership Firms

Partnership firms function under the Indian Partnership Act, 1932. They do not fall under the Companies Act, 2013. They do not receive a CIN. These firms may register with the Registrar of Firms in the respective state, but not with the Registrar of Companies (RoC). Their identification depends on the registration certificate and PAN, not any MCA-assigned number.

• Trusts and Societies

Trusts and societies register under specific laws such as the Indian Trusts Act, 1882 or respective state-level Societies Registration Acts. These entities do not qualify as companies. They do not receive a CIN. Their legal recognition depends on their trust deed or society registration certificate, not on company incorporation rules.

• HUFs (Hindu Undivided Families)

HUFs refer to family-owned business entities recognized under tax law. They do not register as companies. The Income Tax Act governs them, not the Companies Act. The family’s Karta manages the business and holds the authority to sign on behalf of the HUF. HUFs do not get any CIN or LLPIN from the MCA.

Documents Required for CIN

When applying for company registration to obtain a CIN, the following documents are typically required:

• Identity and Address Proof of Directors and Subscribers: Valid government-issued identification (e.g., PAN card, passport) and proof of residence (e.g., utility bill, bank statement).
• Proof of Registered Office Address: Documents such as a recent utility bill, rent agreement, or property ownership deed, along with a No Objection Certificate (NOC) from the property owner, if applicable.
• Memorandum of Association (MoA) and Articles of Association (AoA).
• Declaration by Subscribers and Directors (Form INC-9)
• Digital Signature Certificate (DSC) and Director Identification Number (DIN) must be obtained for each proposed director.
• Consent to Act as Director (Form DIR-2)

How to Obtain a Corporate Identification Number?

Here is the step-by-step process to obtain a Corporate Identification Number:

Step 1: Choose a Name

You must choose a unique name for your company that complies with the naming guidelines set by the government.

Step 2: Decide Company Type

Choose the type of company that suits your business needs, such as Private Limited, Public Limited, LLP, or OPC.

Step 3: Get DIN and DSC

You must apply for a Director Identification Number (DIN) and obtain a Digital Signature Certificate (DSC). These are essential for directors and are required to carry out secure online company registration and filings.

Step 4: Name Reservation

Reserve your chosen company name through the official portal of the Ministry of Corporate Affairs (MCA) using the RUN (Reserve Unique Name) service. You must also ensure that no other business can use it.

Step 5: Create important documents

Prepare essential documents such as the Memorandum of Association (MOA) and Articles of Association (AOA). These documents define your company’s objectives, internal rules, and operational guidelines.

Step 6: Apply and Pay

You must file your application with the Registrar of Companies (RoC) and pay the required fees.

Step 7: Get CIN

Once the Registrar of Companies (RoC) approves your application, you will be issued a Certificate of Incorporation (COI). This certificate confirms your company’s registration and contains your unique Corporate Identification Number (CIN).

How to Find or Verify a CIN?

Here are the steps to find or verify a CIN:

Step 1: Access the MCA Portal

You need to visit the official portal of the Ministry of Corporate Affairs (MCA) to begin the process.

Step 2: Locate the 'Find CIN' Service

On the MCA homepage, you need to go to the "MCA Services" tab and choose "Company Services." Next, you must click on the "Find CIN" option to begin your search from the dropdown menu.

Step 3: Enter Search Criteria

To search for a company’s CIN, you can enter the exact name of the company or LLP, the CIN or LLPIN if already known, or the ROC registration number provided by the Registrar of Companies. After entering the necessary details, you should simply click on the "Submit" button to begin the search and view the company’s information.

Step 4: Review Search Results

The system will show a list of companies that match your input. You can click on the company name to view complete details, including the CIN.

Updating or Changing Corporate Identification Number (CIN)

The Corporate Identification Number (CIN) cannot be changed manually. This number is automatically updated if there are changes in the company’s structure or registration details. These changes include.

• Listing Status

The CIN is automatically updated when there is a change in the company’s nature, such as moving from a Private Limited to a Public Limited Company or getting delisted. This update helps reflect the company’s current status in its identification number without needing a manual change.

• Registered Office Location

If your company shifts its registered office to a different state, the CIN will automatically update to reflect the new state code. For example, relocating from Maharashtra to Karnataka will change the CIN’s state code from ‘MH’ to ‘KA’. This ensures that the number accurately represents the company’s location.

• Industry or Sector

When your company changes its main business activity, the industry code in the CIN will be updated accordingly. For example, if a company moves from software services to financial services, the CIN will be revised to show the new industry classification.

Penalties for Non-Compliance

Failing to mention the Corporate Identification Number (CIN) on official documents can lead to strict penalties. If a company fails to meet this requirement, both the company and responsible officers may be fined Rs. 1,000 per day until the error is corrected. The total penalty can go up to Rs. 1,00,000. These provisions help enforce compliance and promote transparency in company operations.

Conclusion

The Corporate Identification Number (CIN) plays an important role in identifying and regulating companies in India. It helps ensure legal compliance, promotes transparency, and allows stakeholders to access key company details easily. By understanding and using the CIN correctly, businesses can stay compliant with government rules and operate smoothly in legal, financial, and official matters. To register a company, you can reach out to Online Legal India. Their team of professionals offers expert assistance throughout the process.