Corporate Law

How to Get a Corporate Identification Number or CIN in India?

calendar06 Feb, 2024
timeReading Time: 7 Minutes
Corporate Identification Number or CIN

A Corporate Identification Number or CIN is a unique identification number that the Registrar of Companies issues to every company that is incorporated and registered in India. Every company incorporated and formed in India is assigned a is a 21-digit alpha-numeric code known as the Corporate Identification Number (CIN), which is obtained through registration with the Regional Offices (ROC) located in several states of India under the Ministry of Corporate Affairs (MCA). The entities required to obtain a CIN number are companies incorporated in the form of Private Limited Companies (PLCs). One Person Companies or Sole Proprietorships, Companies owned by the Government of India, State Government Companies, Not-for-Profit Companies, Section 8 Companies, Nidhi Companies, or any other company incorporated under the provisions of the Companies Act, 2013 or any other law for the time being in force. For Limited Liability Partnerships, however, the ROC does not assign a CIN but instead assigns LLPIN (Limited Liability Partnership Identification Number).

Significance of Corporate Identification Number in India

The significance of Corporate Identification Number is that, it helps the regulatory authorities keep track ofthe company’s operations and activities and monitors its transactions, which is issued by the Registrar of Companies (ROC) at the time of the company’s creation. This is a special 21-digit number that needs to be given or shown in all paperwork and transactions pertaining to the ROC of the relevant state or area.

A Corporate Identification Number or CIN is very useful in extracting the fundamental information about a company registered in India, allotted by the Ministry of Corporate Affairs. Crucial information about the company can be extracted thanks to the important meaning and ease of interpretation associated with the Company Identification Number. It makes primary information retrievable and makes it easier to identify and follow companies at different information levels that are kept up to date by the Ministry of Corporate Affairs and the Registrar of Companies. A typical Corporate Identification Number or CIN looks like this –

U06278UP2007PTC096893

The 21-digit CIN represents and provides information about the company. The CIN can be broken down into six sections, where each section denotes a specific type of information about the company. In the above example, the CIN can be broken down as follows:

  • The first character of the Corporate Identification Number or CIN, which indicates whether a firm is “Listed” or “Unlisted” on the Indian stock market, makes up the First Part. Stated differently, the initial character denotes the status of the stock market listing. If a corporation is listed, its CIN begins with the letter “L,” and if it isn’t listed, it begins with the letter “U.”
  • The following collection of numbers represents the Industry Code. Five numerical digits make up the data, classifying a company’s economic activity or industry membership. This classification was made based on the type of economic operations that such an establishment would engage in. Every category and industry has been assigned a number by the Ministry of Corporate Affairs (MCA).
  • The next, i.e. 7th and 8th digits of the number that denote the Indian state where the company is registered. For instance, UP is for Uttar Pradesh, MH is for Maharashtra, KA is for Karnataka, DL is for Delhi, etc. It works similarly as the motor vehicle registration number.
  • The next four digits denotethe year of incorporation of the company, e.g. ‘2005.’
  •  Thenext three characters indicate the ownership structure of the company. The distinction between private and public limited companies can be made using these three letters. If this company’s CIN is FTC, it indicates that it is a subsidiary of a foreign business; if it is GOI, it indicates that the Indian government owns the business; if it’s OPC, it indicates One Person Company.
  • The remaining six digits signify the registration number provided by the Registrar of Companies (ROC).

Process of Obtaining CIN for Companies in India

The following process of obtaining CIN for companies in India are –

Step -1 Obtaining a Digital Signature Certificate (DSC)

Firstly, you must get a Digital Signature Certificate (DSC) from an authorized agency. A DSC is a valid instrument that allows the holder to sign documents electronically.

Step 2- Apply for a Director Identification Number (DIN)

The members/directors of the company shall apply for a Director Identification Number (DIN) from the Ministry of Corporate Affairs. It is a unique identification number for the Directors of the company.

Step 3- New registration on the MCA portal.

After obtaining the DSC and DIN number, you can proceed with the registration on the MCA Portal by signing up as a new user.

Step 4- Name Approval

Before submitting the forms, the name approval of the company is required to be taken by verifying the proposed name of the company from the MCA Portal. It should ensure ensured that the selected name has not been taken up by another entity.

Step 5- Submission of Forms

You must submit forms and documents on the MCA portal, such as MOA, AOA, Partnership deed, etc.. MCA has prescribed SPICE+ as a consolidated form for the purpose of making a company incorporation application.

Step 5- Evaluation and Acceptance by MCA

The Ministry of Corporate Affairs will review and approve the application after he receives the necessary paperwork and establishment forms, at this point, the special Company Identification Number(CIN) will be issued.

Step 6- Issuance of CIN

Moreover, once you have submitted all the required documents and incorporation forms, the Ministry of Corporate Affairs will assess and approve the application and issue the Company Identification Number(CIN) and Certificate of Incorporation.

What is the use of Corporate Identification Number or CIN?

A Corporate Identification Number or CIN is useful for a company in several ways since it serves as the official identification signature of the company and can be used on several documents, suchas –

  • Official invoices, bills, receipts and memos
  • Legal Notices and Communiques
  • Official letterheads of the company or firm
  • Annual Reports, audits, Detailed Project Reports, Board Meeting Notices etc
  • E-Forms such as MGT-14, PAS-5, GNL-2 etc filed on the MCA Portal
  • Officially issued publications of the company, such as pamphlets, flyers, brochures, books,periodicals, etc.

Penalty for not mentioning of CIN Number

It is mandatory to display and mention the legally issued Corporate Identification Number or CIN number on all official documents, reports, and communications of the company. If the company defaults in the same, the MCA can impose a penalty of Rs. 1,000/- from the date of default up to a maximum limit of Rs. 1,00,000/ As per section 12(3) of the Companies Act.           

Conclusion

Corporate Identification Number or CIN, is essential to company formation in India. Without it, it is not possible to incorporate a distinguishable corporate entity in India. The Corporate Identification Number is issued by the Ministry of Corporate Affairs, which issues the CIN number after verifying all relevant documents and details provided. The Corporate Identification Number. The CIN number must be displayed on every official document of the company, such as board meeting notices, audit and annual reports, publications, invoices, bills and receipts, etc. Omission to comply with the requirements of the Corporate Identification Number can lead to heavy penal implications for the company and the concerned persons as well.

We at Corpbiz specialize in corporate advisory and incorporation assistance services to our clients, with an experienced team handling almost all types of incorporation and licensing needs and obtaining Corporate Identification Numbers or CINs effortlessly and efficiently. You can rely on our expert services to help you obtain a Company Registration in India.

Frequently Asked Questions (FAQs)

1. What is a Corporate Identification Number or CIN?

A Corporate Identification Number or CIN is a unique identification number that the Registrar of Companies issues to every company that is incorporated and registered in India. Every company incorporated and formed in India is assigned a is a 21-digit alpha-numeric code known as the Corporate Identification Number (CIN).

2. What is the significance of the Corporate Identification Number or CIN in India?

A Corporate Identification Number or CIN helps the regulatory authorities keep track of the company’s operations and activities and monitors its transactions, which is issued by the Registrar of Companies (ROC) at the time of the company’s creation. This is a special 21-digit number that needs to be given or shown in all paperwork and transactions pertaining to the ROC of the respective state.

3. Which entities are required to obtain a Corporate Identification Number or CIN number in India?

For the purpose of operating business in India, all corporate entities- Private Limited Companies (PLCs). One Person Companies or Sole Proprietorships, Companies owned by the Government of India, State Government Companies, Not-for-Profit Companies, Section 8 Companies, Nidhi Companies and any other entity incorporated under the Companies Act, 2013 are required to have a valid CIN number.

4. Are Limited Liability Companies also required to obtain a Corporate Identification Number or CIN?

No, Limited Liability Partnerships are not required to obtain a CIN. Instead, the MCA assigns LLPIN (Limited Liability Partnership Identification Number).

5. Why is the Corporate Identification Number or CIN number important?

A Corporate Identification Number or CIN helps the regulatory authorities keep track of the company’s operations and activities and monitors its transactions. CIN number is also very useful in extracting the fundamental information about a company registered in India, allotted by the Ministry of Corporate Affairs.

6. What does a CIN Number appear like?

A Corporate Identification Number or CIN number is a 21-digit-alpha-numeric code that contains crucial information about the company that can be extracted and, makes primary information retrievable and makes it easier to identify and track the companies. A typical Corporate Identification Number or CIN looks like – U06278UP2007PTC096893

7. What is the penalty for non-compliance with CIN requirements?

It is mandatory to display and mention the legally issued Corporate Identification Number or CIN number on all official documents, reports, and communications of the company. If the company defaults in the same, the MCA can impose a penalty of Rs. 1,000/- from the date of default up to a maximum limit of Rs. 1,00,000/ As per section 12(3) of the Companies Act.

8. What is the process for applying for a Corporate Identification number in India?

The applicant will receive a Corporate Identification Number or CIN number after registering his/her business with the Registrar of Companies. Obtaining a Corporate Identification Number or CIN number does not require a different process. The company will be formed by obtaining a digital signature certificate (DSC) and a director identification number (DIC), having the name authorized, and finishing the necessary paperwork, including the Memorandum of Association and Articles of Association. A CIN number will be included in the certificate of incorporation.

9. What is the time frame to obtain a CIN Number from the MCA?

Post incorporation of the company and application, the Ministry of Corporate Affairs issues the Corporate Identification number within a period of 2-3 days.

10. How is the CIN number helpful for your company?

A CIN number is used as the official identification number of your company and is used to display on documents such as Official invoices, bills and receipts, Legal Notices, letterheads, Annual Reports, audit reports, Detailed Project Reports, Board Meeting Notices, E-Forms filed on the MCA Portal and Official publications of the company such as pamphlets, flyers, brochures, books, periodicals, etc.

Read our Article: Corporate Identification Number: Applicability And Usages

Request a Call Back

Are you human? : 6 + 4 =

Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality