Corporate Identification Number (CIN) Explained: Importance, Usage and More

Dec 30, 2024
Private Limited Company vs. Limited Liability Partnerships

A Corporate Identification Number (CIN) is a unique identifier issued to companies registered with India's Registrar of Companies (ROC). This number is provided at the time of registration and plays a vital role in company compliance. It must be included in all official filings, audits, and reports submitted to the Ministry of Corporate Affairs (MCA). 

To ensure smooth business operations, you must include your CIN in all required documents. It’s mandatory and demonstrates your company’s legal standing.

Table of Contents

What Is a Corporate Identification Number (CIN)?

A Corporate Identification Number or CIN number is a 21-character alpha-numeric code assigned to companies registered under the Registrar of Companies in India. It acts as a unique identifier, reflecting details like the type of company, its state of registration, and year of incorporation.

A CIN is provided to all 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 Companies
  • Nidhi Companies, etc.

In contrast, Limited Liability Partnerships (LLPs) are assigned an LLPIN (Limited Liability Partnership Identification Number). The CIN plays a vital role in company identification and compliance with legal obligations.

Importance of Corporate Identification Number

The CIN is critical for identifying and tracking a company’s activities from its incorporation. Assigned by the Registrar of Companies, it ensures every registered company has a distinct identity under the Ministry of Corporate Affairs. This 21-character alpha-numeric code provides key details, such as the company’s registration type, state, and year of incorporation.

For example, a typical CIN might look like U12345MH2024PLC567890, where each segment represents specific company details.

The CIN must be included in all filings, audits, and reports submitted to the ROC or MCA. It is essential for verifying company information during legal and financial transactions, offering transparency and credibility. The CIN acts as the foundation for company identification, ensuring compliance with Indian business regulations.

Breaking Down Corporate Identification Number

A CIN is a 21-character alphanumeric code that reveals key details about a company. It is structured into six sections, each offering specific information that aids in company identification and regulatory tracking by the ROC and the MCA. Here’s a breakdown:

Section-1: Listing Status

The first character indicates whether a company is “Listed” or “Unlisted” on the stock market.

  • L: Listed on the Indian stock exchange.
  • U: Unlisted.

Section-2: Industry Classification

The following five numeric digits represent the company’s primary economic activity or industry. The MCA assigns each category of economic activity a specific code. For example, 12345 could signify a particular industry, such as technology or healthcare.

Section-3: Registration State

The following two letters identify the state where the company is registered. Examples include:

  • TN: Tamil Nadu
  • GJ: Gujarat
  • UP: Uttar Pradesh

This section functions similarly to state codes in vehicle registration numbers.

Section-4: Year of Incorporation

The next four numeric digits represent the company’s year of incorporation. For example, "2015" signifies that the company was established in 2015.

Section-5: Company Classification

The following three characters indicate the company type. Examples include:

  • PLC: Public Limited Company
  • NPL: Not-for-Profit Organisation
  • SGC: State Government Company

Section-6: Unique Registration Number

The last six digits are the company’s unique registration number, assigned by the ROC to distinguish it from other entities.

CIN number example: U12345TN2015PLC789101

This example shows an unlisted company (U) operating in a specific industry (12345), registered in Tamil Nadu (TN), incorporated in 2015 (2015), classified as a public limited company (PLC), with a unique registration number of 789101.

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Abbreviations in CIN Number

The abbreviations used in Section 5 of the CIN include:

  • FLC: Financial Lease Company as Public Limited.
  • FTC: Private Limited Company Subsidiary of a Foreign Company.
  • GAP: General Association Public.
  • GAT: General Association Private.
  • GOI: Government of India-owned companies.
  • NPL: Not-for-Profit License Company.
  • PLC: Public Limited Company.
  • PTC: Private Limited Company.
  • SGC: State Government-owned Companies.
  • ULL: Unlimited Liability Limited Company.
  • ULT: Unlimited Liability Trust.

Usage of Corporate Incorporation Number

The CIN is essential for ensuring compliance and maintaining legitimacy. It must be used in the following:

  • Invoices: To identify the company in financial transactions.
  • Notices: For official communication with stakeholders.
  • Letterheads: To reflect the company’s legal identity in correspondence.
  • Annual Reports: As a mandatory disclosure for regulatory purposes.
  • MCA e-forms: To ensure accurate filing with the Ministry of Corporate Affairs.
  • Publications: For transparency in public-facing materials.

Using the CIN correctly ensures smooth corporate communication and compliance with Indian legal requirements.

Penalty for Non-Compliance of Mentioning CIN Number

Failing to comply with the requirement of mentioning the CIN on official documents can lead to significant penalties. If the requirements are not met, the defaulting company and its officers in default face a penalty of ₹1,000 per day, continuing until the non-compliance is rectified. The maximum penalty for such defaults is capped at ₹1,00,000. These penalties ensure strict adherence to regulatory norms and maintain transparency in corporate operations.

Changing Corporate Identification Number

You cannot directly change the Corporate Identification Number (CIN), but it automatically updates when specific changes occur in your company’s status or structure. These changes include:

  • Listing Status: The CIN updates automatically if your company transitions from private to public or is delisted. For example, a Private Limited Company converting into a Public Limited Company will update its CIN to reflect the new listing status.
  • Registered Office Location: Moving your company’s registered office to another state will result in an updated CIN to match the new state code. For example, if your company relocates its registered office from Maharashtra to Karnataka, the CIN will change from 'MH' to 'KA'.
  • Industry or Sector: A change in your company’s primary business activity will update the industry classification in the CIN. For example, a company shifting from software services to financial services will modify its CIN to reflect the new industry.

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Frequently Asked Questions

How to apply for CIN?

A CIN is automatically assigned to a company during its registration with the Registrar of Companies (ROC). You do not need to apply for it separately. Ensure you complete all registration requirements with the Ministry of Corporate Affairs (MCA).

How do I find my company's CIN number?

You can find your company’s Corporate Identification Number (CIN) on the MCA website by following these steps:

  1. Visit the MCA website.
  2. Click on the 'MCA Services' tab on the homepage.
  3. From the 'Company Services' dropdown, select 'Find CIN'.
  4. Choose the 'Search Based on Existing Company/LLP Name' option.
  5. Enter the company name in the 'Existing Company' field, complete the captcha, and click 'Search'.

Is CIN allotted to LLP?

No, CIN is specific to companies registered under the Companies Act. Limited Liability Partnerships are assigned a unique identification called an LLPIN instead of a CIN.

What is an example of a corporate identity number?

An example of a CIN is U12345MH2020PTC098765, where:

  • U indicates an unlisted company.
  • 12345 represents the industry.
  • MH denotes Maharashtra as the state of registration.
  • 2020 is the year of incorporation.
  • PTC indicates a private limited company.
  • 098765 is the unique registration number.

How to get a CIN certificate?

Once a company is successfully registered, the ROC provides a CIN certificate. The certificate includes the CIN and other registration details as official proof of the company’s incorporation.

Are CIN and GST the same?

No, CIN and GST are entirely different. CIN is a company identification number issued during registration, while GSTIN (Goods and Services Tax Identification Number) is related to business tax compliance under the GST Act.

Is mentioning CIN on the company’s invoices, bills, and receipts mandatory?

Yes, the Corporate Identification Number (CIN) must be mentioned on invoices, bills, receipts, letterheads, notices, and other official documents. Non-compliance can result in penalties.

Akash Goel

Akash Goel is an experienced Company Secretary specializing in startup compliance and advisory across India. He has worked with numerous early and growth-stage startups, supporting them through critical funding rounds involving top VCs like Matrix Partners, India Quotient, Shunwei, KStart, VH Capital, SAIF Partners, and Pravega Ventures.

His expertise spans Secretarial compliance, IPR, FEMA, valuation, and due diligence, helping founders understand how startups operate and the complexities of legal regulations.

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Related Posts

Startup Accelerators of MeitY for Product Innovation, Development, and Growth (SAMRIDH)

Startup Accelerators of MeitY for Product Innovation, Development, and Growth (SAMRIDH)

SAMRIDH or Startup Accelerators of MeitY for Product Innovation, Development, and Growth, launched by the Ministry of Electronics and IT, aims to provide funding and acceleration to startups, predominantly software startups.

Description Who is it for? Benefits
To provide funding support to the tech and software startups with proof of concept & innovations. For Tech & Software startups Under this scheme, startups can get funding of up to Rs. 40 lakhs based on current valuation and growth stage through selected accelerators.

The investment is extensively for brilliant solutions and proof of concepts through selected accelerators. The selected accelerators are responsible for providing a customized acceleration program for 300 selected startups.

Startup Accelerators of MeitY for Product Innovation, Development, and Growth (SAMRIDH)

Table of Contents

Features of SAMRIDH Scheme

Features of SAMRIDH Scheme
  • The SAMRIDH scheme provides your startup which already has brilliant solutions and proof of concept for their product, better facilities to enhance the product using innovative technologies for the market with a solid business plan.
  • The scheme provides a platform to enhance your products and secure investment for scaling your business.
  • Once your startup gains traction, there is a gap in accessing the growth stage funding to scale up the operations,and the scheme is filling up this gap for startups.
  • The scheme supports existing and upcoming Accelerators to select and accelerate potential IT-based startups to scale to solve India's problems and create positive social impact.

Eligibility for SAMRIDH Scheme

For Startups

  • Must be recognized by DPIIT.
  • Must be in the Early-growth stage.
  • The product of the startup must be software-based.

For Accelerators

  • Must have operations in India.
  • Must have been in the business of incubation for more than three years and supported more than 50 startups.
  • Must have the required infrastructure and targeted acceleration programs.

Application procedure for Startups

The application procedure primarily comprises the following steps:

  • Visit https://meitystartuphub.in.
  • On the homepage, click on “Register” under the Startup section.
  • The registration page will appear. Fill in all the requisite details and click on the “Submit” button.
  • Following registration, one can "log in" to the page for further access by filling in the username and password.

Benefits of SAMRIDH

  • This scheme provides a platform for product development and business scaling in terms of investment.
  • To provide customer connect, investor connect, and international connect services.
  • Up to Rs 40 lakh will be provided to the startups according to their current valuation and growth stage through accelerators..
  • Customized acceleration programs for startups and provided product and capacity enhancement services.

Post-Selection Process for SAMRIDH Scheme

The ​​MeitY SAMRIDH Scheme will be implemented through the MeitY Startup Hub (MSH). The selected Accelerator will be responsible for developing personalized acceleration programmes, and the budget for each startup is Rs. 2 lakh.

The services include- Co-learning, networking, expert diagnosis, and negotiation of investment funding from Angel Investors. A maximum of 10 businesses and a minimum of 5 startups working in the sphere of software products can be helped by a shortlisted accelerator.

MSH will take equity in startups for the government's contribution via Promissory/SAFE Note, the same as Accelerator, which will be utilized to sustain the program.The startup's exit may be executed by MSH or its appointed entity holding the company's equity, subject to approval from SMC. Biannual assessments of startups within the portfolio will be conducted, and the resulting reports will inform decisions regarding exiting from the startup.

Frequently Asked Questions

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Frequently Asked Questions

What documents are required to apply for the SAMRIDH Scheme?

The documentation requirements may vary depending on the lending institution, but generally, applicants need to provide identity proof, address proof, income proof, and business-related documents.

What are the key benefits of the SAMRIDH Scheme?

The key benefits of the SAMRIDH Scheme include financial support, access to investment opportunities, and promotion of entrepreneurship with the help of the accelerators.

Which accelerators are presently part of the Samridh Scheme?

Here is a list of accelerators participating in the Samridh Scheme: Link.

Form STK-2 for Winding Up of Companies: Procedure, Fees & Documents

Form STK-2 for Winding Up of Companies: Procedure, Fees & Documents

The Ministry of Corporate Affairs (MCA) has simplified the process of closing down non-operational companies by introducing Form STK-2. This form is filed for striking off or winding up a company by removing its name from the register of companies maintained by the Registrar of Companies (ROC).

Available for filing on the MCA portal, Form STK-2 is one of the most commonly used methods of company closure, especially for startups or businesses that are no longer in operation and wish to avoid ongoing compliance costs.

In this blog, we will cover everything you need to know about Form STK-2, including its purpose, eligibility, required documents, filing process, and key consequences.

Table of Contents

What is Form STK-2, and When is it Used?

Form STK-2 is prescribed under Section 248(2) of the Companies Act, 2013, allowing a company to apply for voluntary strike-off. It is used by companies that are:

  • Not carrying on any business for the last two consecutive financial years, or
  • Have not sought the status of a dormant company, and
  • Do not have any outstanding liabilities.

For example, consider a startup that launched operations but never scaled up. Instead of continuing to maintain compliance (like audits, annual filings, and tax submissions) with no business activity, the founders can choose to file Form STK-2 and officially close the company.

What are the Benefits of Filing STK-2?

Filing Form STK-2 provides several benefits:

  • Quick and cost-effective closure compared to liquidation.
  • Savings on audits and compliance costs that continue even if the company has no operations.
  • Faster process – usually completed within a few months.
  • Protection of directors and shareholders from future penalties or liabilities.

This makes STK-2 a practical option for small companies and startups that wish to wind up smoothly.

What are the Eligibility Criteria to File STK-2?

Not every company is eligible to file STK-2. The key criteria are:

  • Applicable to Private Limited Companies, One Person Companies (OPC), and Unlisted Public Companies.
  • The company should have no pending liabilities and must clear all dues before applying.
  • The business must not have carried on any activity for at least two consecutive years.
  • Board and special resolutions (approved by at least 75% of shareholders) are mandatory.

Companies that are listed, under inspection, or involved in ongoing litigation are not eligible for strike-off.

What Documents Are Required for STK-2?

The following documents must be attached while filing STK-2:

  • Board resolution and special resolution approving strike-off.
  • Affidavit by directors (Form STK-4) declaring no pending liabilities.
  • Indemnity bond by directors (Form STK-3), ensuring liability coverage.
  • The company's latest audited financial statements.
  • Directors’ PAN, Aadhaar, and digital signatures (DSC).
  • Incorporation documents like Certificate of Incorporation, MoA, and AoA.

How to File the STK-2 Form? Step-by-Step Guide

Here’s a step-by-step guide to filing Form STK-2:

  1. Board Approval: Conduct a board meeting and pass a resolution for closure.
  2. Shareholder Consent: Obtain a special resolution with 75% shareholder approval.
  3. Clear Liabilities: Pay off loans, creditors, and statutory dues.
  4. Prepare Documents: Collect Forms STK-2, STK-3, STK-4, audited accounts, MoA, AoA, and ID proofs.
  5. Online Filing: File Form STK-2 on the MCA portal along with attachments.
  6. Pay Government Fee: ₹10,000 is payable at the time of filing.
  7. ROC Review: The Registrar verifies documents and issues a public notice.
  8. Strike-Off Approval: Once satisfied, the ROC strikes the company name from the register.

Voluntarily Removing Company Name using Form STK-2

Companies can voluntarily apply for strike-off by:

  • Clearing all debts and liabilities.
  • Passing a special resolution with the approval of at least 75% members.
  • Seeking NOC/approval from regulatory bodies (if the company is under their regulation).

Effect of Removing Name from Register of Companies

Once the company’s name is removed under Section 248:

  • The company is dissolved and ceases to exist legally.
  • The Certificate of Incorporation is cancelled.
  • The company cannot carry on any business operations.

However, directors, managers, and shareholders remain liable for any past dues, fraud, or pending obligations as if the company had not been dissolved.

Closing of Company by Filing Form STK-2

The closure process through STK-2 involves:

  • ROC verification of pending liabilities.
  • Publication of a public notice inviting objections.
  • Striking off the company’s name from the register.
  • Publishing the strike-off notification in the Official Gazette.

Once published, the company is considered officially dissolved.

What are the Consequences of Not Filing STK-2?

Failing to close an inactive company can lead to several consequences:

  • Director disqualification under the Companies Act.
  • Heavy penalties and fines for non-filing of annual returns and financial statements.
  • Government-initiated strike-off without the company’s consent.
  • Restrictions on starting new companies for disqualified directors.
  • Continued obligations for tax filings and ROC compliance despite no business activity.

What Challenges Can You Face While Filing STK-2?

Some common challenges include:

  • Delays in obtaining tax or GST clearance.
  • Errors in affidavits or indemnity bonds.
  • Issues with expired DSCs of directors.
  • Non-cooperation from shareholders or directors.
  • ROC objections due to mismatched or incomplete details.

What is the Cost Involved in STK-2?

The cost of filing Form STK-2 includes:

  • Government fee
  • Professional charges
  • Notary and affidavit charges
  • DSC renewal costs, if applicable
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Frequently Asked Questions

Sarthak Goyal

Sarthak Goyal is a Chartered Accountant with 10+ years of experience in business process consulting, internal audits, risk management, and Virtual CFO services. He cleared his CA at 21, began his career in a PSU, and went on to establish a successful ₹8 Cr+ e-commerce venture.

He has since advised ₹200–1000 Cr+ companies on streamlining operations, setting up audit frameworks, and financial monitoring. A community builder for finance professionals and an amateur writer, Sarthak blends deep finance expertise with an entrepreneurial spirit and a passion for continuous learning.

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A Guide to Charitable Trust Registration

A Guide to Charitable Trust Registration

Charitable trusts are powerful vehicles for driving social impact. Whether it's providing education to underprivileged children, supporting healthcare initiatives, or promoting cultural and religious values, charitable trusts operate with the sole aim of public welfare. They function as nonprofit entities, helping individuals and organisations contribute meaningfully to society.

Proper legal registration is required to set up a charitable trust. This not only establishes credibility but also enables access to tax benefits and ensures compliance with laws.

In this guide, we’ll explain everything you need to know about charitable trust registration: what it is, how to create one, the benefits, required documents, legal structure options, and a step-by-step registration process.

Table of Contents

What is a Trust?

A trust is a legal arrangement where one party (the trustor or settlor) transfers assets to another (the trustee), who manages them for the benefit of a third party (the beneficiary). Trusts can be:

  • Private trusts – Created for specific individuals or groups (like family members).
  • Charitable/public trusts – Established to serve the public good through activities in education, healthcare, relief, or religion.

Creation of Trust

Setting up a trust involves a few essential steps:

  1. Define the purpose – Clearly outline the mission or goal of the trust.
  2. Draft a Trust Deed – This is the legal document that outlines the trust’s objectives, details of trustees, mode of operations, and more.
  3. Appoint Trustees – These are individuals who will manage the trust's affairs.
  4. Identify Beneficiaries – Define who will benefit from the trust.
  5. Register the Trust – For a charitable trust to be recognized legally and receive tax exemptions, registration with the local authority is crucial.

What is a Charitable Trust?

A charitable trust is a type of public trust established to carry out philanthropic, religious, educational, or social activities. Unlike private trusts, these operate for the benefit of society at large and not for any specific individual or family.

Charitable trusts must be registered under applicable laws, such as the Indian Trusts Act, 1882, or state-specific legislation, to be legally recognised and to enjoy tax benefits.

Benefits of Setting Up a Charitable Trust

Here’s why setting up a charitable trust can be highly beneficial:

  • Tax Exemptions: Registered charitable trusts can avail of tax benefits under Sections 12A and 80G of the Income Tax Act.
  • Legal Recognition: Gives legitimacy and builds trust among donors and beneficiaries.
  • Structured Fund Management: Enables systematic handling of funds and activities.
  • Credibility and Transparency: Boosts donor confidence and supports fundraising.
  • Long-Term Impact: A legal trust ensures that social efforts continue beyond the lifespan of its founders.

Legal Structure Options for Charitable Trust

When setting up a charitable organisation, you can choose from a few legal structures:

  • Public Charitable Trusts – Governed by the Indian Trusts Act or state laws. Ideal for small to mid-sized social initiatives.
  • Societies – Registered under the Societies Registration Act, 1860. Suitable for large-scale, membership-based organisations.
  • Section 8 Companies – Formed under the Companies Act, 2013, for nonprofit purposes. Best for organisations looking for high compliance standards and credibility.

Depending on your goals, each structure has different compliance requirements, operational flexibility, and advantages.

Documents Required for Registering a Charitable Trust

To register a charitable trust, you’ll typically need the following documents:

  • Trust Deed (on non-judicial stamp paper)
  • PAN card of the trust and the trustees
  • ID and address proof of all trustees (Aadhaar, passport, voter ID)
  • Passport-size photographs of trustees
  • Proof of registered office address (rent agreement, utility bill)
  • No Objection Certificate (NOC) from the property owner (if applicable)
  • Trust objectives clearly stated in the deed

Charitable Trust Registration Process

Follow these steps to register your charitable trust:

  1. Draft the Trust Deed – Clearly define your objectives, trustees, operations, and rules.
  2. Get it Notarised – Ensure it’s on proper stamp paper and signed by the settlor and trustees.
  3. Submit to the Registrar – File the trust deed with the local Sub-Registrar office along with identity proofs and passport-size photos of trustees.
  4. Pay Registration Fees – Fees vary depending on the state and property involved.
  5. Apply for PAN – After registration, get a PAN card for the trust.
  6. Apply for 12A and 80G Certification – These allow income tax exemption for the trust and its donors.

Conclusion

Setting up a charitable trust is a meaningful way to contribute to society, but it requires careful planning, legal clarity, and compliance. Registering your trust legitimises your efforts and opens up access to tax benefits and funding opportunities.

Whether you're working toward education, healthcare, or social welfare, a properly structured and registered charitable trust ensures that your good work has a lasting impact.

Frequently Asked Questions

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Frequently Asked Questions

How Do I Register for a Charitable Trust?

To register a Charitable Trust in India, follow these steps:

Step-by-Step Process:

  1. Choose Trustees: Decide the number of trustees (minimum 2). There’s no upper limit.
  2. Draft a Trust Deed: This legal document defines the trust's objectives, operations, trustee roles, and management rules.
  3. Prepare Supporting Documents: Prepare documents like ID and address proof of all trustees, Photographs, Proof of registered office (rent agreement or ownership document + NOC), etc.
  4. Visit Sub-Registrar Office: Submit the trust deed on stamp paper (value depends on the state), signed by trustees and two witnesses.
  5. Get Trust Deed Registered: Once verified, the registrar will return a certified copy of the trust deed with an official stamp and registration number.

What is the Difference Between an NGO and a Charitable Trust?

"NGO" is a broad term referring to any non-governmental organisation working for social welfare. A Charitable Trust is a specific legal structure for an NGO.

Aspect Charitable Trust NGO
Legal form Specific type of NGO Can be a Trust, Society, or Sector 8 Company
Registration Act Indian Trusts Act, 1882 Depends on structure: Trust Act, Societies Act or Companies Act
Governing Body Trustees Governing council, Board of Directors, etc.
Best suited for Smaller, family-run or religious initiatives Formal NGOs working with the Government or donors

What are the Eligibility Criteria for a Charitable Trust?

To register a charitable trust:

  • Minimum of 2 trustees (individuals)
  • At least one trustee should be an Indian citizen
  • Must have a defined charitable objective (education, healthcare, poverty relief, etc.)
  • Should have a registered address (can be residential or rented space with NOC)
  • Trustees should not be involved in any criminal or financial misconduct

What is the Fee for Charitable Trust Registration?

The registration fee varies by state and typically includes:

  • Stamp Duty for Trust Deed
  • Notarisation Fee
  • Professional Fee

Does a Charitable Trust Have to Pay Tax?

Yes, but they can get exemptions if they register under:

  • Section 12A: Grants income tax exemption for charitable activities.
  • Section 80G: Allows donors to claim tax deductions on donations.

Key conditions to claim exemptions:

  • Funds must only be used for charitable purposes.
  • No profit distribution among trustees.
  • Accounts must be audited if income exceeds limits.

Sarthak Goyal

Sarthak Goyal is a Chartered Accountant with 10+ years of experience in business process consulting, internal audits, risk management, and Virtual CFO services. He cleared his CA at 21, began his career in a PSU, and went on to establish a successful ₹8 Cr+ e-commerce venture.

He has since advised ₹200–1000 Cr+ companies on streamlining operations, setting up audit frameworks, and financial monitoring. A community builder for finance professionals and an amateur writer, Sarthak blends deep finance expertise with an entrepreneurial spirit and a passion for continuous learning.

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