What is the CIN of a Company and How to Get it?

Launching your own business is no small feat. The round-the-clock demand of the industry will keep any budding entrepreneur on her feet. There are just so many legalities of starting your venture that it is important to have everything noted down in a checklist format, so you have an idea of what to do and how to do it.

The thing that any budding entrepreneur needs to pay special attention to is the Corporate Identity Number (CIN). The article will act as an entrepreneur’s guide in understanding what a CIN number is, and how to get it.

What is CIN?

To put it simply, CIN is the identity card of your company. The 21 digits alpha-numeric unique identification code, CIN is allotted by the Registrar of Companies, also known as RoC, following the registration of the company. The unique code is provided by the RoCs of the states under the Ministry of Corporate Affairs (MCA). Read more about CIN on the Finserv MARKETS website.

Why is it required?

The CIN serves multiple purposes, the primary being the distinguishing factor. The CIN is unique to each company and no two firms will have the same corporate identity number. It provides a means for the state and centre to keep an eye on the authenticity of the business. The number also provides information on which industry does your company belong to, among other things.

Understanding the format of the CIN

To understand better, let us assume your newly registered company has just received its corporate identification number, or CIN number – L22210MH2020PLC084781

Now, let us see all the information that can be collected after a cursory glance at this code.

1. If your company is yet to be listed on the stock exchange, your CIN number will begin with U (for unlisted) — followed by 20 other digits. For companies that are listed on the stock exchange, the corporate identity number will begin with L (for listed)
2. The following five digits (22210) represents the industry code. Each industry has a unique five-digit RoC code prescribed. This code helps in identifying the type of firm
3. The industry code is followed by the state code (MH for Maharashtra). This signifies that the company was registered in Maharashtra, with its registered office being there
4. The state code is followed by the year in which the company was incorporated (2020, in the above example)
5. The year of incorporation is followed by the information on the ownership pattern of the company. In the above instance, the company is a Private Limited Company (PLC)
6. The final six digits represent the registration number of the company

How to get CIN?

The unique code will be automatically allotted after the company’s successful registration.

Now that you know what CIN is, and how to get one, it is important to also increase your financial literacy by reading more about business loans that provide quick clearance and disbursal.  You can read more about it on the Finserv MARKETS website.