Corporate Identification Number (CIN): Complete Guide

Each registered company is assigned with a unique number commonly known as Corporate Identification Number (CIN). Corporate Identification Number or Company Identification Number helps in identifying companies in detail and it is mandatory for all companies to mention their CIN on the official documents including letterhead once the company gets incorporated.

But what if CIN is not mentioned on these documents? In this blog, we will discuss in detail what is a CIN number, Corporate Identification Number breakdown, use of CIN, penalty for non-compliance, change in CIN, and many more.

What is a Corporate Identification Number (CIN)?

A CIN or Corporate Identification Number is a 21 digit alpha numeric number assigned to companies incorporated within the country by the Registrar of Companies. This CIN is provided to all types of companies including the,, State Government Companies, Non-profit Organizations,, Nidhi Companies, etc. It is important to note that for, corporate identification number is not issued while for LLPs one LLPIN is issued. A Corporate Identification Number (CIN) includes 6 sections with each different purpose. Let’s understand the detailed breakdown of CIN.

Corporate Identification Number Breakdown

A Corporate Identification Number includes 6 major sections and they are as follows:

Section 1: Listing Status:The first section includes one single place represented as “L”or “U”. Here “L” represents the company that is listed while “U” represents the company that is unlisted.

Section 2: Industry Code:The next 5 digits of CIN represents the industry code of the company. This classification is based on the nature of business activity by the Ministry of Corporate Affairs.

Section 3: State Code:The Next 2 alphabets represent the state in which the company is registered.

Section 4: Incorporation Year:The next four digits represent the year of company incorporation.

Section 5: Company Type:The next three letters represent the type of company either a PTC (Private Limited Company), PLC (Public Limited Company), LLP (Limited Liability Partnership), etc.

Section 6: Registration Number:The last six digits of CIN denotes the registration number of the company provided by the Registrar of Companies.

Simple Breakdown of CIN (Corporate Identification Number):

For Example: Let’s assume an imaginary CIN number for better clarity —

L54321MP2021PTC987654

“L” represent the Company is registered

“54321” is the example of industry of the business (business activity)

“MP” represents Madhya Pradesh state where company is incorporated

“2021” represent the year in wich company is registered

“PTC” represents the company type, here private limited companies

“987654” represents the registration number of the company

Common Confusion:People get confused with the abbreviation used for company structure. It is advised to check abbreviation & business structure clearly to avoid confusion.

Abbreviations Under CIN

Use of Corporate Identification Number

Corporate Identification Number commonly known as CIN Number is used on multiple documents prepared by the company. Following is the list of documents where Corporate Identification Number is used:

Payment Documents including invoices, receipts and bills

Company’s letter head and other official documents

Communication documents including Notice and Agenda of meeting etc.

Finance related documents including audit reports and annual filings

Any government official document is going to be submitted with the Ministry of Corporate Affairs (MCA) Portal.

Penalty for CIN Non-Compliance

It is mandatory for each registered company toindicate its Corporate Identification Number on business letters, billheads, notices, etc as perof Companies Act, 2013. In case if the company fails to do so, there will be a penalty of ₹1000/- per day till the default continues as perof Companies Act, 2013. However, this penalty is limited up to ₹1,00,000/-. Also, it is important to note this penalty will apply to the company and every officer in default. It is advised to stay compliant to avoid heavy penalties and legal consequences.

Change in CIN

Corporate Identification Number or CIN Number is a crucial part for any company registered with MCA. CIN is provided to each registered company providing it a unique identity but this CIN may need to be changed in case of change within the company. These changes can be as follow:

Change in Listing Status:In case of change in listing status of a company, CIN number also required modification.

Change in Industry:In case companies change their industry or sector of work, they must update their CIN as it includes their business industry code as well.

Change in State:In case companies change their state, they must update their CIN number as well.

Change in Business Structure:In case companies decides to shift from one business structure to another, for example from One Person Company to Private Limited Company

Conclusion

CIN Number or Corporate Identification Number is a 21 digit alpha-numeric number assigned to each registered company with MCA. This number includes listing status, industry code, state status, incorporation year, company structure and registration number. It is important to stay compliant with CIN to avoid heavy penalties and legal consequences. CIN number needs to be updated with MCA in case of change in state or location, industry sector, listing status or business structure. In case of non-complaint ₹1,000/- per day penalty is levied on the company which can go up to ₹1 lakh. It is advised to keep your CIN number active so that no legal action would be taken against the company. To avoid the hassle of managing CIN activation, consult with an expert in this field.

Frequently Asked Questions (FAQs)

What is a CIN Number?

A CIN Number is a 21-digit alpha numeric number allotted to each company on the successful registration of their company with MCA in India.

Is CIN allotted to LLPs?

No, CIN is only allotted to companies, while LLPs are allotted with LLPIN (Limited Liability Partnership Identification Number).

Is CIN mandatory to mention on Company’s Invoices?

Yes, it is mandatory to mention a company's CIN number on their company invoice and other legal communication documents.

Are CIN and PAN the same?

No, CIN is a 21-digit alpha numeric number allotted to the companies on their successful registration while PAN is a 10 digit alpha numeric number allotted to individuals or entities for Income Tax Identification purposes.

Does every company have a CIN Number?

Yes, a CIN number is mandatory for all companies in India including private limited companies, public limited companies, one person companies, section 8 companies, etc.