The Company Identification Number, or CIN, is an alphanumeric number assigned to all the companies that are registered under the Companies Act in India. It is a 21-character-long unique number issued by the Registrar of Companies commonly known as RoC which comes under the MCA i.e Ministry of Corporate Affairs (MCA) and functions as the unique identification of that particular company. The CIN is the part of the process of regulatory filings, proof of the legal existence of that company in India. Whether it's opening a new company or retrieving the CIN of an existing one, this understanding about its acquisition is necessary for maintaining legality and legal compliance.
What is CIN?
CIN is a 21 digit number which carries all information on type of company, date of incorporation, state of registration, and industry classification. CIN is given in the pattern as follows:
- The first character specifies whether it is a public or private company.
- The next five characters: This is NIC codes of industry.
- The following two characters: State in which the company is registered.
- Next four digits: Incorporation Year
- Next three digits: It is the unique number assigned to the company by RoC.
- Last digit: It is the special code representing the listing status of the company.
For instance, a CIN can appear like this: U12345MH2024PLC001234.
- U denotes to the status of listing of the company, where U denotes to unlisted company and L denotes to listed company
- 12345 is the industry code that represents the economic activity of the company (as per the National Industrial Classification).
- MH means the state code where the company is registered. For example: MH is for Maharashtra, DL is for Delhi, KA is for Karnataka etc
- 2024: The date of incorporation.
- PTC000001: The CIN ID, here PTC means Private Limited Company, PLC represents Public Limited Company and NPL means Not-for-Profit Organization (Section 8 companies)
Corporate Identification Number (CIN) vs Company Registration Number (CRN)
Many times people get confused between a corporate identification number and company registration number. They end up considering both as the same. But for clarification purposes it's important to know the difference between them.
CIN or Corporate Identification Number
A permanent, 21-digit alphanumeric code which is considered as the official identity of a company. It is issued by the ROC after the incorporation of a company and appears in the Certificate of Incorporation of the company. A CIN includes essential information related to the company, including its type, industry code, state code, and year of incorporation.
CRN or Company Registration Number
An easy-to-remember, unique 21-digit alphanumeric number assigned to a company on filing, representing tracking of its application. CIN is a replacement given on the Certificate of Incorporation of the company that replaces CRN.
Importance of Company Registration Number (CIN)
The CIN is an important element of the identity and legal compliance of Indian businesses. Here are the primary reasons why the CIN is important:
- Legal Identity: The company registration number proves that a business is officially registered and recognized legally under Indian laws. It acts as proof of the existence and legal standing of the company.
- Compliance: CIN is required for filing annual returns, tax documents, and financial statements to the Ministry of Corporate Affairs, MCA. A valid company registration number ensures that all compliance to corporate regulations becomes hassle-free.
- Verification: With CIN, an investor, partner, or regulatory authority can check on the genuineness of a company and even access the registered information of a company on the MCA portal.
- Transparency: The company registration number makes a company's information traceable in government records. This builds accountability and trust by making essential details publicly accessible
Step-by-Step Process to get Corporate Identification Number
To obtain a CIN, you would have to incorporate your company via the Ministry of Corporate Affairs (MCA). Here's the step-by-step process on how to do it:
Preparation for Registration
- Select the type of a company (Private Limited, Public Limited, One-Person Company, Section 8 etc.)
- Choose an unique name for the company which complies to the naming rules of MCA
- Collect all of the documents
- PAN and Aadhaar of Directors
- Proof of the address of the registered office.
- Memorandum of Association.
- Articles of Association.
Registration on the MCA Portal
- Navigate to the MCA Website.
- Create an account with the MCA portal as the company incorporation service would be procured from it.
Obtain a Digital Signature Certificate
- Every director has to obtain a DSC to digitally sign the incorporation forms.
- Obtain a DSC from the certifying agencies as given on the MCA website.
Obtain a Director Identification Number
- Apply for DIN for all directors through the SPICe+ form, which is Simplified Proforma for Incorporating Company Electronically Plus.
- DIN is compulsorily required for the appointment of directors in any company.
Filing of SPICe+ Form
- Take the SPICe+ form from the MCA portal, that includes,
- Part A: Name reservation application
- Part B: Incorporation application
- Enter every detail and upload documents in support; then make fee payment
Certificate of Incorporation
- RoC issues CoI after the acceptance. This consists of CIN about the company
- Download the copy of the CoI and use for the further course
How to Find If a Company Is Registered Legitimately Using CIN?
In order to find out whether a company is registered or not, CIN helps a lot. With the help of corporate identification number you can identify the registration status of the company as following:
- Open the MCA website
- Click on "MCA Services" then select "View Company/LLP Master Data."
- Type in CIN or search using company name
- Observe the company registration details, compliance status, and the financial filings made.
Conclusion
CIN which is the corporate identification number is of high importance beyond just being a regulatory requirement. It makes verification of legitimacy even easier on the regulatory front and aids in bringing in more transparency in the operation. The CIN can be retrieved or validated by the public using the online services provided by the MCA. Whether you are an owner of a company or a stakeholder, keeping a CIN on hand is very important to enable smooth interactions with government authorities and other entities. In other words, the CIN acts like a passport for the smooth operation of a company in India.
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