In India, starting a new business takes more than just a skill and an idea. You will need to devote time to completing various documentation processes and registering for various unique business identity numbers, such as
GST, TIN, and CIN. The primary goal of making such registration mandatory is to increase transparency in the system and ensure that various business rules and regulations are strictly followed.
In this blog, we will go over everything there is to know about Corporate Identity Numbers (CIN), including what they are, how to get them, and much more.
What is the company CIN number?
CIN is a 21-digit alphanumeric number that is allocated to different types of businesses when they get registered in India. The Registrar of Companies (ROC) under the Ministry of Corporate Affairs (MCA) is in charge of allocating this number.
CIN is assigned to the following types of entities:
- Private limited companies
- State government companies
- Central government-owned companies
- One-person companies
- Nidhi companies
If you own a limited liability partnership, the ROC will assign you a 7-digit limited liability partnership identification number (LLPIN) instead of a CIN.
What do the different CIN numbers mean?
The 21-digit unique CIN can be divided into six sections. These are.
Part 1
In this comes the first letter – 'L'. It informs you of whether the particular company is listed on the stock exchange. A CIN beginning with L indicates that the company is publicly traded. In case the company is not listed, the CIN will begin with the letter U.
Part 2
It is the next five digits of your CIN. These five letters tell you which economic activity the company is involved in. The MCA has assigned identical five-digit numbers to each business in a similar industry. Check the table below to learn about them.
| Business Activity | Five Digit Code |
|---|
| Hospitals | 85110 |
| Contract/fees basis real estate activities | 70200 |
| Freight transportation business using motor vehicle | 60231 |
| Mineral water production | 15543 |
| Construction materials (retail sales) | 52341 |
| Farming of goats, cattle, sheep, horses, etc. | 01211 |
| Tour operator and travel agency business | 63040 |
| Production or supply of software | 72211 |
Part 3
The third part in the CIN is about 7th and 8th place. These two alphabetical locations inform you of the state ROC in which the particular company is registered. For example, if the company is registered in Uttar Pradesh, the seventh and eighth positions will show UP. Similarly, if the business is incorporated in Maharashtra, the code will be MH.
Part 4
The 9th to 12th place informs about the year in which the company is incorporated.
Part 5
The next three positions, 13th to 15th, represent the company classification. Some of the alphabets you will notice here are GOI, FTC, OPC, and so on. But what these alphabets mean will be discussed in the following section.
Part 6
The last six digits, 16th to 21st, indicate the company's registration number as provided by the ROC.
What do the various abbreviations used in CIN mean?
When looking at various companies' CINs, you may notice different abbreviations in section five. Here is an explanation of what they are and what they mean.
| Abbreviation | Meaning | Abbreviation | Meaning |
|---|
| FTC | A subsidiary of a foreign organisation as a private limited company | PTC | Private limited company |
| GAT | General association private | ULT | Unlimited liability private company |
| OPC | One person company | SGC | State government-owned company |
| GOI | Central government-owned company | ULL | A public limited company having unlimited liability provision |
| PLC | Public limited company | GAP | General association public |
| FLC | Financial lease public limited company | NPL | Not-for-profit company (Section 8) |
What are the various uses of CIN?
The CIN is required on several documents. These are:
- Receipts
- Invoices
- Notice
- Letterheads
- Annual Reports
- Business letters
- Bill heads
- E-forms available on the Ministry of Corporate Affairs portal
- Email to third parties (not part of the country)
- Publications, including financial results, periodicals, journals, and books
What will happen if you do not comply with the CIN regulations?
Noncompliance with CIN rules will result in significant penalties. You must pay a daily penalty of Rs 1,000 as a defaulting company until you comply with the rule. However, the maximum penalty amount is limited to Rs 1,00,000.
What are the circumstances under which you can request a change in your CIN?
A request for CIN is permissible in the following three cases.
- If the listing status of the company changes.
- If you are relocating your office or transferring your registered office to a new state.
- If you are transitioning from one sector to another.
How to get the CIN number of a company?
There is no separate procedure to apply for this number. CIN is automatically assigned as soon as your company is incorporated and the ROC approves it.
The ROC is a government agency with offices in every state and union territory. Apart from allocating CIN, this body's other functions include
- Allowing change in the company name
- Permitting changes in the registered office
- Change in objective clause
- Taking strict action against companies not abiding by laws
- Conversion of private companies to public
How to check the CIN of any company?
You can check any company's CIN by following the six steps outlined below.
- Go to the official website of MCA
- On the home page, navigate to the 'MCA Services' tab.
- Next, click on 'Company Services' and choose 'Find CIN' from the drop-down menu.
- Choose the 'Search Based on Existing Company' option.
- Under the 'Existing Company' option, mention the name of the company you wish to find CIN.
- Lastly, input the captcha code and tap on the 'Search' tab.
Also Read: Simplifying Business Loan Documentation Conclusion
The article must have addressed your question about how to get a CIN number. If you want to do business in India, you must have this unique 21-digit number. It enables concerned authorities to keep track of your critical business activities and ensure you comply with the Ministry of Corporate Affairs' various laws and regulations.
