Understanding Corporate Identification Number (CIN)

Summary: A Corporate Identification Number (CIN) is a unique 21-character alphanumeric code assigned to companies registered in India by the Registrar of Companies (ROC) under the Ministry of Corporate Affairs (MCA). It applies to private and public limited companies, government-owned entities, and not-for-profit organizations. The CIN structure consists of six sections that provide details about a company, including listing status, industry type, state of registration, year of incorporation, classification (such as private or public limited), and registration number. For example, an “L” at the beginning indicates a listed company, while a “U” denotes an unlisted one. The industry code identifies the business sector, and state codes such as “RJ” (Rajasthan) or “MH” (Maharashtra) indicate the registration state. Companies must use CIN on official documents, including invoices, memos, letterheads, and MCA filings. Changes in listing status, state of registration, or industry sector can lead to CIN modifications. Failure to mention CIN in required documents results in penalties of ₹1,000 per day, up to ₹1,00,000. Understanding CIN helps businesses ensure compliance and accurate company identification in legal and financial transactions.

WHAT IS CIN?

Corporate Identification Number (CIN) is a 21-digit alpha-numeric number assigned to all Private Limited Companies, Person Companies, Government of India Companies, State Government Companies, Not-for-Profit, Nidhi Companies, and other entities registered in India.

CIN number means that it is a unique identification number assigned by the ROC (Registrar of Companies) of each state under the MCA (Ministry of Corporate Affairs). CIN numbers are assigned to companies registered in India by ROCs located across the country.

CIN FULL FORM & DECODING:

In the above example, the CIN can be broken down as follows:

 Section-1: The first character – L

Section-2: The next five digits – 54321

Section-3: The next two letters – RJ

Section-4: The next four digits – 2010

Section-5: The next three characters – PTC

Section-6: The last six digits – 010431

Each section provides the following information:

 Section-1:Consists of the first character of CIN that reveals whether a company is “Listed” or “Unlisted” on the Indian stock market. In other words, the first character implies the Stock Market listing status. In case a company is listed, the CIN would start with the letter ‘L’ and in case a company isn’t listed it would start with the letter ‘U’.

Section-2:Consists of the next set of five numeric digits that categorizes the economic activity of a company or to which industry the company belongs to. This classification is based on the nature of the economic activities which would be carried out by such an establishment. The Ministry of Corporate Affairs (MCA) has allotted a number to every category or industry.

Section-3:Consists of the next two letters that denote the Indian state where the company is registered. For instance, RJ is for Rajasthan, MH is for Maharashtra, DL is for Delhi, etc. It works in a similar fashion as the car registration number.

Section-4:Consists of the next set of four numeric digits that signifies the year of incorporation of a company.

Section-5:Consists of the following three letters that denote the company classification. These three letters help to identify whether a company is a private limited company or a public limited company. If the CIN number here is FTC, it would mean that such a company is a subsidiary of any foreign company or if it’s GOI, it would imply that such company is owned by the Indian Government.

Section-6:Consists of the remaining six numeric digits that denote the registration number provided by the respective Registrar of Companies (ROC).

ABBREVIATIONS IN CIN NUMBER

 The abbreviations used in the Section-5 of the CIN are as follows:

• FLC: Financial Lease Company as Public Limited
• FTC: Subsidiary of a Foreign Company as Private Limited Company
• GAP: General Association Public
• GAT: General Association Private
• GOI: Companies owned by the Government of India
• NPL: Not-for-Profit License Company (Section 8 Company)
• OPC: One Person Company
• PLC: Public Limited Company
• PTC: Private Limited Company
• SGC: Companies owned by State Government
• ULL: Public Limited Company with Unlimited Liability
• ULT: Private Company with Unlimited Liability

USAGE OF CORPORATE INCORPORATION NUMBER

 Every company that is established in India needs to quote its Corporate Identification Number on various documents which include:

• On invoices, bills and receipts
• On notice
• On memos
• On letterheads
• Annual Reports and audits
• Every e-form submission on the MCA portal
• Company’s official publications
• Any other company publications

CHANGING CORPORATE IDENTIFICATION NUMBER

CIN which is provided to every registered company for the purpose of identification can be changed in certain cases such as:

• Any change in the listing status of a company
• Any change in the location or change of state where the company’s registered office is situated
• Any change in the industry/sector to which a company belongs

PENALTY FOR NON-COMPLIANCE OF MENTIONING CIN

Penalty of Rs. 1000/day on the defaulting Company and Officers in Default (Maximum penalty: Rs. 100000).