CIN or Corporate Identification Number is a unique identification number that a company receives when it is registered through a Registrar of Companies (RoC) in India. It carries key details about the company, such as its type, state and year of registration. Investors, lenders and business owners often need it.
This blog explains what CIN is, its format, and why it is important.
CIN Full Form and Meaning
CIN stands for Corporate Identification Number. (The Companies Act, 2013 calls it the Corporate Identity Number. Both mean the same thing.)
A CIN Number is a set of unique 21 alphanumeric characters a company gets through the Registrar of Companies under the Ministry of Corporate Affairs (MCA) at the time of incorporation. Each company has its own CIN, so it helps you tell one company from another, even in the same industry.
Format of CIN
A CIN has six sections. Here is what each one means.
- Section 1: The first of the CIN contains either the letter L or U. Where L represents Listed and U represents Unlisted.
- Section 2: This section contains 5 numerals which represent industry type and economic activity.
- Section 3: This section contains the 2 letters that represent the state which tells the location of company incorporation. For example, DL represents Delhi.
- Section 4: Section 4 contains 4 numeric digits that represent the year of incorporation of a company.
- Section 5: Section 5 contains 3 letters that represent the company type. For example:
- PLC: Public Limited Company
- PTC: Private Limited Company
- FTC: Subsidiary of a Foreign Company
- GOI: Government of India Company
- SGC: State Government Company
- OPC: One Person Company
- NPL: Not-for-profit company
- Section 6: The last six digits are unique identification numbers assigned by RoC to the company.
Simple Example Of CIN to understand the code
Let’s assume this is a CIN Number: U12345MH2023PTC012345
Here,
- U in CIN Number means Unlisted.
- 12345 represents the industry code of business activity.
- MH means Maharashtra
- 2023 represents the year 2023 when the company is incorporated.
- PTC IN CIN Number Means Private Limited Company
- 012345 represents the unique identification number of a company given by the official Registrar of the Company. It is known as the company registration number.
Each part of the CIN number provides you with company information that makes it easy to understand the company’s background.
Why is CIN mandatory?
CIN is mandatory to present on official documents like memos, letterheads, notices, invoices, and other official documents. Here is the list of documents that must have a CIN number.
- Invoices
- Notices
- Letterheads
- Receipts
- Annual Reports
- Emails to people outside the company
- Bill heads
- Business Letters
CIN is important to present on the document so it can be easily identified during the regulatory processes. Here is the list of important reasons why a company should have CIN number.
- Legal Compliance: Section 12 of the Companies Act, 2013 requires the CIN on these documents. It is a mandatory thing, if a company does not have CIN, it can face penalties and fines (a penalty of ₹1,000 per day until they add a CIN Number). This can impact the company’s financial condition.
- Gives Unique Business Identity: CIN is a unique identifier for a company, it makes it easy to differentiate a company from the other one. CIN is a major identifier for a company that is in the same industry.
- Tax Compliance: The CIN helps to ensure that the company follows tax rules by tracking its transactions and avoiding penalties.
- Easy Loans: Lenders like banks, NBFCs and financial institutions require CIN for loan processing. Without CIN it becomes really difficult for a company to get loans or credits. This limits the financial help that a company needs for its expansion and growth.
How to Get a CIN Number?
If you want to apply for the CIN, you need to follow the steps mentioned below.
- Get a Digital Signature Certificate (DSC): Arrange DSCs for the proposed directors and subscribers who need to digitally sign the incorporation documents.
- Get a Director Identification Number (DIN): Eligible first-time directors can apply for DIN
- Reserve the company name in SPICe+ Part A: Apply for name approval through SPICe+ Part A. You can also submit Part A and Part B together.
- File SPICe+ Part B with the MoA (Memorandum of Association) and AoA (Articles of Association).
- Pay the fees and stamp duty: Submit the digitally signed incorporation forms and pay the applicable government fees and stamp duty.
- After the RoC (Registrar of Companies) verifies everything, you receive the Certificate of Incorporation. It carries the CIN, along with the company’s PAN and TAN.
How To Find the CIN of a Company?
Anyone can easily find the CIN Number of the company on the official MCA portal. You can follow the below-given steps to find the CIN number of a company.
- Visit the official MCA Website
- Now find the MCA service section on the home page
- Under the MCA services, select the View company/LLP Master Data
- Enter the Company Name and the CAPTCHA
- Click on the search button
- Get CIN and Company details
These are a list of steps you can follow to find the CIN number of a company easily.
Alternative Method for CIN Number Check
Checking one CIN by hand is easy. Checking hundreds of vendors, borrowers or customers is slow and error-prone. A CIN Number Check API is a quick way to get the CIN and other details of a company straight from the official database. Using it is simple:
- Enter the company name or PAN
- Receive the CIN and company details
It saves time when you have to check many companies, and it helps you catch wrong or fake CINs.
Penalties for Not Mentioning the CIN
If a company fails to mention the CIN on the legal documents and other important places, it breaks Section 12(3) of the Companies Act, 2013. Under Section 12(8), the company and every officer in default can face a penalty of ₹1,000 for each day the default continues. However, the total penalty will never cross ₹1,00,000.
FAQs
Ques: Do foreign companies in India get a CIN?
Ans: Foreign companies that are in India under Section 380 do not receive a Corporate Identification Number (CIN). They are assigned a Foreign Company Registration Number (FCRN).
Ques: Can a company’s CIN change?
Ans: Yes, a company’s CIN (Corporate Identification Number) can be changed. It is done under specific corporate or legal circumstances. For example, when a private company becomes public, the RoC can issue an updated CIN.
But, it cannot be manually edited or changed by the company directly.
Ques: What is the difference between CIN and DIN?
Ans: CIN (Corporate Identification Number) is provided to a registered company. A DIN (Director Identification Number) is allotted to an individual who serves as a director.
Ques: Is it free to check CIN?
Ans: Yes, the basic search that shows company name, registration date, status, registered address, class, and capital details is free of cost
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