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Introduction:
Understanding Corporate Identification Numbers (CIN) is crucial for every business registered in India. Whether you're running a Private Limited Company, a State Government enterprise, or any other company, knowing your CIN and its significance is essential. In this comprehensive guide, we delve into the intricacies of CIN, its components, its importance, and how to obtain it.
Understand What Is corporate identification number (CIN Number Of Company)
Corporate Identification Number (CIN) is a unique 21-digit alphanumeric code assigned to companies registered in India by the Registrar of Companies (ROC) under the Ministry of Corporate Affairs (MCA). It serves as a vital identifier for tracking a company's activities and transactions with the ROC.
Components of CIN:
Breaking down the 21-digit CIN reveals key information about the company:
Section-1: Indicates the listing status of the company (Listed/Unlisted).
Section-2: Classifies the economic activity or industry of the company.
Section-3: Denotes the Indian state where the company is registered.
Section-4: Represents the year of the company's incorporation.
Section-5: Identifies the type of company (Private Limited, Public Limited, etc.)
Section-6: Signifies the registration number provided by the ROC.
Let's break down the components of CIN:
Section-1:
The first character of the CIN indicates the listing status of the company.
It can be either "L" for listed companies or "U" for unlisted companies.
This character distinguishes between companies listed on the Indian stock exchange and those that are not.
Section-2:
The next five digits classify the economic activity or industry to which the company belongs.
These digits categorize the company based on the nature of its economic activities.
The Ministry of Corporate Affairs (MCA) assigns a specific number to each category or industry.
Section-3:
This section consists of two letters that denote the Indian state where the company is registered.
For example, "MH" represents Maharashtra, "KA" represents Karnataka, and so on.
It functions similarly to a vehicle registration number, indicating the state of registration.
Section-4:
The next four digits represent the year of the company's incorporation.
These digits indicate the year in which the company was registered with the Registrar of Companies (ROC).
Section-5:
This section consists of three letters that denote the type of company.
It helps identify whether the company is a private limited company, public limited company, or other types of companies.
For example, "PTC" represents a Private Limited Company, "PLC" represents a Public Limited Company, and so on.
Section-6:
The final six digits represent the registration number provided by the respective Registrar of Companies (ROC).
Each registered company is assigned a unique registration number by the ROC, which is included in the CIN.
These six sections collectively form the 21-digit alphanumeric code of the CIN, providing essential information about the company's listing status, economic activity, state of registration, year of incorporation, type of company, and registration number. The CIN serves as a unique identifier for tracking and identifying companies registered in India.
Importance of CIN Number Of Company
Legal Compliance: CIN is a legal requirement, and companies must include it in all documents submitted to the MCA. Non-compliance may lead to penalties.
Business Identification: CIN distinguishes a company from others and aids in brand recognition and reputation building.
Access to Credit: Lenders often require the CIN for loan applications, impacting a company's ability to secure credit.
Compliance with Tax Regulations: CIN facilitates compliance with various tax regulations, ensuring accurate tracking of transactions.
Corporate Governance: Including CIN in official documents promotes transparency and accountability, enhancing corporate governance practices.
Obtaining a CIN Number Of Company
To obtain a CIN, companies need to follow these steps:
Choose a unique name for the company.
Decide on the type of company (Private Limited, Public Limited, etc.).
Obtain Director Identification Number (DIN) and Digital Signature Certificate (DSC).
Reserve the chosen name with the government.
Draft the Memorandum of Association (MOA) and Articles of Association (AOA).
Apply for company registration with the ROC and pay the required fees.
Upon approval, receive the Certificate of Incorporation (COI) containing the CIN.
Penalty for Non-Compliance:
Failure to include CIN in relevant documents may result in penalties of INR 1,000 per day until compliance is met, with a maximum penalty of INR 1,00,000.
Changing CIN Number Of Company:
Changes in listing status, registered office location, industry focus, ownership structure, or ROC oversight may necessitate updating the CIN.
FAQs About CIN:
- How to apply for CIN?
CIN is automatically allotted upon company incorporation and approval by the ROC.
- How do I find a company's CIN?
Visit the MCA website, navigate to the 'MCA Services' tab, and select 'Check CIN' to search for a company's CIN.
- Is CIN allotted to LLPs?
No, LLPs receive an LLPIN (Limited Liability Partnership Identification Number) instead of a CIN.
- Are CIN and GSTIN the same?
No, CIN is a unique identifier issued by the ROC, while GSTIN is issued for Goods and Services Tax registration.
- Is mentioning CIN mandatory on company documents?
Yes, as per the Companies Act, CIN must be included in all business letters, bills, letterheads, etc.