One of the major developments in the administration of Companies in India is the need to quote its Company Identification Number on various documents including Invoices and Letter Heads. This is effective from April 1 2014.
The specific Companies Act section is (Section 12(3)(c) of New Companies Act, 2013)
Q: What is CIN?
Ans: Company CIN Code, sometimes referred as Company CIN Number or Company CIN No. is a unique identification number assigned by Registrar of Companies (ROCs) functioning in various states under Ministry of Corporate Affairs (MCA), Govt. of India.
On successful formation of the company, the respective ROC issues a certificate containing its unique Corporate Identification Number (CIN No. or CIN Code) along with its approved name. Till now every company had to quote this unique Company CIN number whenever a correspondence or data forms submitted to MCA, particularly in audits and reports.
ROCs function as registry of company records, related to the companies registered with them and located in various states of India.
Q: How is the CIN generated?
Ans: The Corporate Identity Number code or Company CIN No. / code is a 21 digits alpha-numeric code / number.
Company CIN Code is unique and can be used to identify or track each of the company for various levels. The Company CIN Number / Code has its own meaning, easily translatable and assists in finding the basic information of the company.
Q: Please explain the structure of the CIN.
Ans: The CIN has a 21 digits alpha-numeric code with six parts:
Part-1: First character reveals that whether the company is “Listed” in the stock market or “Unlisted”. It refers to listing status. If Company is Listed in the stock exchange, it will start with ‘L’ and if Company is not Listed it will start with ‘U’.
Part-2: Next 5 numeric digits categorize the industry of the company. MCA has their own categorization in this regard.
Part-3: Next 2 alphabets represent the state code of the registered office exists and which ROC has registered the company.
Part-4: Next 4 numeric digits represents the year of incorporation.
Part-5: Next 3 alphabets states the classification of the company. ie., public limited or private limited or etc.
Part-6: Last 6 numeric digits indicate the registration number. This registration number includes the code of ROCs that company has been registered.
Fore easer of understanding, let me quote the example of CIN of Reliance Industries.
The CIN number of Reliance Industries Ltd. (RIL) is L17110MH1973PLC019786.
Here, L indicates that it is a listed company.
17110, which are the next 5 digits, indicate the industry or the sector which the company belongs.
MH is the code for Maharashtra, where the company is situated.
1973 is the year of incorporation. PLC stands for Public limited company.
019786 is the registration number of the company.
Q: Where has CIN to be mentioned?
Ans: It is compulsory to mentioned Company Identification Number on the following documents:
- On Invoices and Receipts
- On Letterheads
- On Notice
- Any other publications
Q: Is there any penalty for violating this rule
Ans: In case of any non compliance of the said section, the company and the officers which are in default shall be liable to a penalty of Rs. 1000 for every day during which the default continues but not exceeding Rs. 1,00,000/-.
The company’s website is considered to be the company’s’ publication. Hence, the CIN has to be mentioned on the Company’s website.
As responsible netziens in case the CIN is not mentioned on any company’s website, please send a message through the ‘Contact Us’, option.