Starting a business from scratch is not as easy as it looks. It is more of implementation than just ideation. Various things are needed to be taken care of before beginning this journey. You need to tend to work like GST registration, TIN number, CIN number registration, avail of a business loan if required, and many more. For now, let us focus on the CIN number: what is the CIN number and how to get it done?
What is a CIN Number?
CIN stands for Corporate Identity Number. A CIN consists of 21 alpha-numeric digits which is a unique code. It is provided by the Registrar of Companies (RoC) that operates under the Ministry of Corporate Affairs. This unique code number helps in tracking everything related to a business or company which operates in India. A CIN consists of the following details:
- Incorporation Year
- State Code
- Listing Status
- Company Type
CIN Number Format
The 21 alpha-numeric digits in a CIN number consist of the following:
- Listing Status - The first letter of the unique number represents whether the company has been listed or not. L represents for being listed and U represents for being unlisted.
- Industry Code - The 5 digits after the L or U represent the RoC industry code. It shows what type of industry the company is engaged in.
- State Code - The two letters after the 5 digits of the industry code are the state code. They represent from which state of RoC your business is being registered.
- Year of Incorporation - These 4 digits represent the year of incorporation of the business. If the business is incorporated in 2020 then these 4 digits will be 2020.
- Ownership - The next 3 alphabets represent the type of ownership of the company under Government of India, Private Limited Company, Not-for-profit, State Government Company, or One Person Company.
- Registration Number - The last 6 digits represent the registration number under which your business is being registered by RoC.
Where to Use the CIN Number?
The 21 alpha-numeric digits in a CIN number can be used or mentioned in the following:
- Annual Reports
- Receipts and Invoices
- MCA Portal
- Other publications
How to Get a CIN Number?
The CIN number is like identification proof of your registered business. It also determines the authenticity and legitimacy of your company. Any business can apply for the CIN number from the MCA official website by following these simple steps:
- Step 1 - Fill up the registration application form from www.mca.gov.in.
- Step 2 - Provide all the necessary documents and information asked for.
- Step 3 - Make the payment to receive the CIN number from MCA.
To Sum Up
The CIN number is one of the most important facets for a business as it works as identity proof and as a sign of authenticity. It is asked for in numerous official business documents. Do remember to get yours as soon as you start establishing your company. Furthermore, don't forget that if you need financial aid for your business you can always opt for a business loan. However, to choose the right type of business loan for you, utilize a Business Loan Eligibility Calculator which is easily available online.