When you incorporate a company, you must ensure that you meet the required compliances. Such compliances include completing the registration process in its entirety. One step in the registration process is issuing a Corporate Identification Number (CIN). CIN has various uses and can be quite important for your company as you continue running your operations. Continue reading to learn more about CIN and its role in your business activities.
What is a CIN?
CIN means Corporate Identification Number, and it is used by the Registrar of Companies for all companies registered in India. It is a unique identification number provided to you at the same time as your registration certificate. It consists of a 21-digit alpha numeric code and is issued to companies registered in India, including:
Private Limited Companies (PLCs)
One Person Companies (OPCs)
Companies owned by the Government of India
State Government Companies
Not-for-Profit Section 8 Company
Nidhi Companies, etc.
Note that a CIN is not provided to Limited Liability Partnerships (LLPs) registered in India. If you have an LLP, you will receive an LLPIN (Limited Liability Partnership Identification Number), a unique 7-digit identification number.
Read more about LLP registration here.
What are the different sections of a CIN?
The 21 digits of a CIN represent information about a company and are broken down into six sections. The sections and the details they provide are as follows:
Section 1: This section consists of the first character of the CIN and reveals whether a company is ‘listed’ or ‘unlisted’ on the Indian stock market. The former is denoted by ‘L’ and the latter by ‘U’.
Section 2: This section, consisting of the next five digits, showcases the economic activity of a company or the industry to which it belongs.
Section 3: Consisting of two letters, this section denotes the Indian state where the company is registered.
Section 4: This section comprises four numeric digits that signify the year in which the company was incorporated.
Section 5: This section consists of the next three letters that indicate whether a company is a private or public limited company.
Section 6: Consisting of the last six numeric digits, this section denotes the registration number issued by the Registrar of Companies.
What is the importance of CIN for businesses?
CIN is issued to track all the activities and other aspects of a company, right from its incorporation. No matter what kind of transactions your company initiates with the Registrar of Companies, you must provide a CIN.
Since the 21-digit number is unique and has its meaning, it is useful to find out basic information about a company. It can be used to track and identify companies or discover additional information about an organisation registered under the Registrar of Companies.
Thus, you have to provide a CIN on almost all useful documents about your company for identification and tracking purposes. These documents include invoices, bills, notices, memos, letterheads, annual reports, official publications, etc. Hence, having a CIN becomes integral to your daily business activities.
Now that you know more about CIN meaning make sure your company has one and use it when required.
HDFC Bank recognises the challenges entrepreneurs face while acquiring capital. Thus, HDFC Bank has created MyBusiness, a one-stop solution that gives you easy access to loans, digital solutions and provides you with the essential knowledge you need to run your business. With HDFC Bank MyBusiness, you can scale up, expand your operations, and nurture your business.
To learn more about the various products and services at HDFC Bank that can benefit your enterprise, you can check out the MyBusiness page here.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. HDFC Bank recognises the challenges entrepreneurs face while acquiring capital. Thus, HDFC Bank has created MyBusiness, a one-stop solution that gives you easy access to loans, digital solutions and provides you with the essential knowledge you need to run your business. With HDFC Bank MyBusiness, you can scale up, expand your operations, and nurture your business.