A Corporate Identification Number (CIN) is a distinct identification number provided to firms registered in India by the Company registrar. The CIN is given to firms by the Company registrar after they receive their Certificate Issued. The CIN is significant because every corporation must provide this unique identifier in all the documents filed to the Department of Corporate Affairs, including assessments and investigations.
What Is a Corporate Identification Number?
The Corporate Identification Number (CIN) is a 21-digit dominant code granted to firms established in India after already being established with the ROC in various cities and states underneath the MCA.
All firms operating in India are given a corporate identification number, which includes:
- Companies under the state government
- Individual companies
- Companies that are privately limited
- Non–Profit section 8 company
- Indian government-owned companies
- A multinational firm’s affiliate
- Nidhi Companies and many more
Limited Liability Companies operating in India do not receive a CIN. The Limited Liability Partnership Identifying Code is a distinctive seven-digit identifying number that is assigned by the ROC to LLPs.
Importance of Corporate Identification Number
The twenty-first digit CIN does have its significance that is simply readily convertible and aids in the discovery of fundamental business information. It’s utilised to get the basic information on organizations that are established under the MCA in the nation. CIN is obliged to comply with all interactions with the relevant ROC which is used to trace all elements and activities of a company starting with its establishment by the ROC.
CIN is a one-of-a-kind amount which can be used to distinguish or trace organisations for various levels of communication held by ROC / MCA. The CIN includes an organization’s identification as well as additional details about the ROC-registered corporation.
Usage of Corporate Identification Number
Every firm based in India should include its Company Identification Code on a variety of papers, including:
- On the Registration page, each e-form entry is done.
- Important releases of the organization
- Any other works by the organization
- Printed on stationery, letterheads, etc.
- Inspects and financial statements
- On billing, contracts, and reimbursements
- Put on served notice
Sections Of Corporate Identification Number
The CIN is a 21-digit value that measures the organization and provides information about it. The CIN is organized into six segments, which are as follows:
- Section-1: The very first element of a CIN indicates if a firm is “Classified” or “Unregistered” on the Indian stock exchange. In simple words, the first character denotes whether or not the company is listed on the stock market. If a firm is registered, the CIN will begin with the character ‘L,’ and if it is not classified, it will begin with the character ‘U.’
- Section-2: The following set of five alphanumeric numbers categorizes a firm’s business growth or the sector to which the group is attached. This categorization is classified according to the type of economic output that such an organization would engage in. Each division or business has been given a value by the Securities Commission.
- Section-3: The very next two forms identify the Indian state in which the business is incorporated. For example, DL stands for Delhi, MH for Maharashtra, TN for Tamil Nadu, and so on. It functions similarly to an automobile identity card.
- Section-4: The following set of four alphanumeric characters represents the year in which the company was founded.
- Section-5: The business categorization is described by the following initial words. These three letters indicate whether a business is a privately owned or a publicly traded firm. If the CIN registration is FTC, it indicates that the firm is a subordinate of a multinational corporation, while GOI indicates that the team is owned by the Indian government.
- Section-6: The registration plate supplied by the individual Company registrar is represented by the remaining 6 numeric characters.
Changing Corporate Identification Number
The CIN, which is given to each and every registered firm for identifying purposes, can be modified in specific circumstances, such as:
- A modification in the firm’s registration category
- The firm’s business shifts.
- The firm’s industry shifts.
- Each firm is issued a distinctive CIN for recognition, and the corporation is meant to use that CIN for the rest of its life, however, in some instances, the CIN may alter.
- Changes in the site or jurisdiction of the nation’s corporate headquarters
CIN Number consists of?
Only the corporate headquarters, its subsidiaries, divisions, and industrial sites can use the corporate identification number for any dealings or communications.
Details that a CIN Number consists of are as follows:
- Corporate Governance Status
- Identifier of the license.
- Regulation of Business Practices
- Law of the Territory
- Year of Establishment
- Validity of the listing
The other necessary documents that are required are as follows:
- All e-forms are available on the Department of Trade And industry website.
- Bills are in charge.
- Articles of commerce
- Statistics for the Year
If the previous section requirements are not met, the infringing organization and each of its officers’ face penalties of INR 1,000 per day until the mistake is resolved. The highest punishment for this omission, nevertheless, is INR 1,000,000.
CIN refers to Corporate Identification Number, and it is required of all businesses to obtain this 21-digit identifier issued by the Registration of Offices (RoC) in each province. It is an identification code that is used to establish all of the firm’s essential knowledge. As a result, all sorts of organisations operating in India must have a Professional Identifying Number and no corporation may operate without one.
A CIN is an alphabetic number that is assigned to a corporation by the Company registrar at the moment of its establishment. The CIN is listed in the firm’s Articles of Incorporation. When a business is formed and authorized by the Companies registry, it is automatically added a CIN code.
Nope, the Commission assigns a CIN to a commercial entity and an LLPIN to a Partnership Firm.