In incorporating a company, the first thing which needs to be done, is to register for a CIN i.e. Corporate Identification Number. Every company at its incorporation has to mandatorily obtain a Corporate Identification Number which will help others, in  having knowledge about the said company. CIN imparts a number of information such as the company’s registration number, the type of company, its nature of business, the year of incorporation of the company and other things. In this write-up we are going to discuss about CIN in detail.  

What is Corporate Identification Number? 

One of the basic requirements while incorporating a new company is to obtain its Corporate Identification Number (CIN). The Corporate Identification Number is a 21-digit alphanumeric unique code provided to the companies to distinguish and identify them as individuals. Issued by the Registrar of Company, CIN is necessary for all types of companies whether it be a Private Limited Company, a Public Limited Company, a One Person Company, a Section 8 Company, a Nidhi Company, or a Producer Company. 

Information provided through Corporate Identification Number 

The CIN Number provides certain information regarding its company. The CIN Number is divided into six parts, referring to six different pieces of information. They are- 

Listing Status  

The first division is a single alphabet denoting the listing status of the company in the stock market. It is denoted through ‘L’ or ‘U’. ‘L’ denotes the company as ‘Listed’, while ‘U’ denotes the company as ‘Unlisted’. 

Industry Code 

In the next division, the five-digit number denotes the economic activities of the company. This division is known as the industry code of the company. The code depends on the type of business executed by the company, such as- 

• Hospitals have code – 85110 
• Manufacturing of mineral water has code – 15543 
• Dairy and cattle farming have code – 0121144 
• And other codes as mentioned in the list of ROC Industry Codes. 

State Code  

The next division is the state code of the registered office of the company. The two alphabet helps locate the state registered office and also the concerned ROC of the company. The alphabets are as per the state names, such as, ‘MH’ for Maharashtra,‘TN’ for Tamil Nadu etc. The said state code would change accordingly with any change in the state of the registered office of the company. 

Company Incorporation  

The next division simply signifies the year of the company incorporation. 

Type of Company  

The next division represented by three alphabets denotes the type of the company. It denoted whether it is a private company, a public, a one-person company, or any other type. Some of the company codes are- 

• Private Limited Company
• Public Limited Company
• One Person Company
• Companies of the State Government
• Government of India Companies
• Section 8 Company, any non-profit company 
• And others. 

Registration Number  

The last division is represented by six numbers indicating the registration number of the company. It is the unique ROC code of the company which depends on the type of business carried out by the company and the ROC the company has registered.44444 

Importance of Corporate Identification Number 

As mentioned earlier, the CIN certificate issued by the ROC contains a number of information. It presents a number of aspects of the company and basic information of the company essential for each of its transactions. Other than the transacting companies, anyone seeking information about a company can gather information under the MCA^[1]. 

Obtaining Corporate Identification Number 

One does not need to specifically apply for obtaining a Corporate Identification Number. The Corporate Identification Number is automatically provided to the company on its incorporation by the Registrar of Company. The ROC ensure the compliance to be fulfilled by the company before its incorporation. Step for incorporation of a company- 

• Acquiring a digital signature certificate 
• Acquiring a director identification number44 
• Reservation of company name 
• Incorporation of company 

Upon a successful incorporation of the company, the ROC provides the company with the CIN. 

Changing CIN of a Company 

The Corporate Identification Number, though does not have an expiry, it needs to be changed under certain circumstances. These circumstances are of significant importance to the company, such as- 

• Any change in the listing status of the company. 
• Any change in the registered office of the company. 
• Any change in the nature of business of the company. 

Penalty for not Citing CIN 

As per the Companies Act, there is penalty of Rs. 1000 per day to be paid by the company when CIN is not mentioned in its important documents. Such penalty cannot exceed the amount of Rs. 1 Lakh. 

Conclusion   

The Corporate Identification Number helps maintain the availability of information regarding a company for the one in need. The Corporate Identification Number along with the MCA allows to make information available with creating any crucial information about the company which may cause harm to it. With no steps to follow separately in order to obtain a CIN other than the incorporation of the company itself, there is no additional compliance that has to be followed. Still, for any further clarifications, feel free to contact Bizadvisors.  

Read our article:All You Need to Know About Director Identification Number (DIN)