NGO Company: Definition, Functions & Registration Process Explained

May 29, 2025
Private Limited Company vs. Limited Liability Partnerships

In a world that constantly faces social, economic, and environmental challenges, Non-Governmental Organisations (NGOs) play a vital role in driving impactful change. Whether it's empowering underserved communities, promoting education, supporting healthcare initiatives, or advocating for environmental sustainability, NGOs act as catalysts for progress. In India, NGOs can be structured as Section 8 companies, trusts, or societies, each with its own legal framework.

In this blog, we’ll explore what an NGO is, why setting one up matters, the different types of NGOs, how they function, and a detailed look at the NGO registration process in India.

Table of Contents

What is an NGO?

An NGO (Non-Governmental Organization) is a non-profit entity that operates independently of government control. These organisations work toward social, cultural, environmental, educational, or humanitarian goals. While they can receive support from government bodies, their operations are autonomous and mission-driven.

In India, NGOs can be registered as:

  • Trusts (under the Indian Trusts Act, 1882)
  • Societies (under the Societies Registration Act, 1860)
  • Section 8 Companies (under the Companies Act, 2013)

Each type comes with its own legal, operational, and tax implications.

Why To Set Up NGOs?

Setting up an NGO provides individuals and groups with a structured platform to:

  • Drive meaningful social change
  • Support marginalised or underprivileged communities
  • Promote awareness in education, health, and the environment
  • Organise charitable events and campaigns
  • Attract grants and donations for cause-based work
  • Collaborate with government bodies, corporations, and international organisations

Most importantly, NGOs create a long-lasting impact by scaling their efforts through organised, transparent, and legally recognised structures.

NGO Vs NPO

While the terms NGO and NPO (Non-Profit Organization) are often used interchangeably, there are differences:

Aspect NBFC Section 8
Stands for Non– Government Organisation Non–Profit Organisation
Purpose Primarily social or environmental causes Any activity without a profit motive
Scope Usually broader; includes advocacy & operations May include cultural, sports, and religion–based work
Structure Maybe a trust, society or Section 8 company Any entity without profit distribution

How Does an NGO Work?

NGOs follow a structured approach to fulfil their mission:

  1. Identifying a Cause: Based on research and community needs
  2. Fundraising: Via donations, grants, events, and crowdfunding
  3. Project Planning: Setting objectives, timelines, and budgets
  4. Implementation: Executing programs via staff or volunteers
  5. Monitoring & Evaluation: Measuring impact and reporting outcomes
  6. Collaboration: Partnering with donors, corporates, and institutions
  7. Governance: Managed by a board or trustees ensuring accountability

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Benefits of NGO Registration

Registering an NGO offers multiple advantages:

  • Legal recognition
  • Eligibility for tax exemptions under Section 12A and 80G
  • Access to government and international funding
  • Increased credibility among donors and the public
  • Easier access to open a bank account
  • Enhances long-term sustainability

Eligibility For NGO Registration Online

To register an NGO online in India, you need:

  • Minimum 2 members for a Trust or Society; 3 directors for a Section 8 company
  • Members must be at least 18 years old
  • Indian citizenship (Foreign nationals can be members under certain conditions)
  • Valid identity and address proofs
  • Digital Signature Certificates (DSCs) for directors (in the case of Section 8)

How to Register an NGO Online: Step-by-Step Guide

Whether you're starting a non-profit to promote education, healthcare, or social development, registering your NGO gives it legal standing and access to benefits like tax exemptions and grants. Here's how to do it for each structure:

1. Registering a Section 8 Company (Companies Act, 2013)

Ideal for NGOs focusing on charitable, educational, religious, or social objectives with a corporate-style structure.

  • Get Digital Signature Certificates (DSC):
    Required for signing online forms. Obtain DSC for all proposed directors.
  • Reserve NGO Name:
    Use the SPICe+ Part A form on the MCA portal to check availability and reserve your NGO's name.
  • File Incorporation Documents:
    Submit:
    • SPICe+ Part B (Main incorporation form)
    • MOA (Memorandum of Association)
    • AOA (Articles of Association)
    • AGILE-PRO (for GST, ESIC, EPFO registrations)
  • Apply for PAN and TAN:
    These are issued automatically with the incorporation process via the same SPICe+ form.
  • Receive Certificate of Incorporation:
    Once approved, you’ll receive your COI, PAN, and TAN—your NGO is now a legal Section 8 company!

2. Registering a Trust

Ideal for family-run charitable institutions or those with fewer trustees and simpler operations.

  • Draft a Trust Deed:
    Include the trust’s name, objectives, details of trustees, and mode of operation.
  • Get the Trust Deed Notarized and Registered:
    Visit the local Sub-Registrar office with the trust deed and identity/address proofs of trustees. Pay the applicable stamp duty.
  • Apply for PAN:
    Once registered, apply for a Permanent Account Number (PAN) in the name of the Trust.

3. Registering a Society

Commonly used for clubs, cultural groups, welfare associations, and NGOs operating at a state or national level.

  • Draft Memorandum of Association (MOA) and Rules & Regulations:
    These should include your NGO’s objectives, structure, and operational guidelines.
  • Register with the Registrar of Societies (State-Level):
    Submit the MOA, rules, identity/address proof of members, and fee to the Registrar of Societies in your respective state.
  • Apply for PAN:
    After successful registration, apply for PAN for your society.

How NGOs are Funded?

Funding sources for NGOs include:

  • Government Grants (central and state)
  • Private Donations (individuals, philanthropists)
  • Corporate Sponsorships (CSR funds)
  • Crowdfunding Platforms
  • International Aid (foreign funding under FCRA compliance)
  • Membership Fees (in the case of societies)

Conclusion

NGOs play an important role in solving real-world challenges whether it’s improving education, supporting healthcare, protecting the environment, or empowering communities. They give individuals and groups a platform to drive meaningful change in society.

Understanding the different types of NGO structures and knowing how to register them is the first step toward building something impactful. The process may seem complex at first, but with the right guidance and resources, it becomes much more manageable.

Frequently Asked Questions

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Frequently Asked Questions

What is an NGO Company?

An NGO Company refers to a Section 8 Company registered under the Companies Act, 2013 in India. It is a non-profit organisation to promote charitable activities like education, health, environment, or social welfare. Unlike regular companies, it does not distribute profits to its members.

Which Type of NGO is Best?

The “best” type depends on your goals:

  • Section 8 Company: Best for credibility, fundraising, and large-scale operations.
  • Trust: Suitable for small groups or family-run charitable work.
  • Society: Ideal for cultural, educational, or social associations at a state or national level.

If you plan to seek government funding or work with international organisations, Section 8 Company is usually preferred due to its structured compliance and legal recognition.

How Do I Register My Own NGO?

You can register your NGO as a Trust, Society, or Section 8 Company. The basic steps are:

  • Decide on the structure (Trust/Society/Section 8)
  • Prepare necessary documents (like MOA, Trust Deed, identity/address proof)
  • Apply online or visit the relevant authority (MCA portal for Section 8, Registrar of Societies or Sub-Registrar for others)
  • Get PAN and complete any required notarization or registration

What is the Registration Fee for NGOs?

The cost depends on the type of NGO and the state. If it’s a Section 8 company then multiple factors like stamp duty, professional fees, DSC charges, etc. affect the cost.

How to Get an NGO Certificate?

Once your registration is approved:

  • For Trust/Society, the local authority will issue a registration certificate
  • For Section 8 Company, the Ministry of Corporate Affairs (MCA) will issue a Certificate of Incorporation

Who is Eligible for NGO Registration?

Any Indian citizen (18+ years old) can register an NGO.

  • Trust: Minimum 2 trustees
  • Society: Minimum 7 members (can include people from different states for national-level society)
  • Section 8 Company: Minimum 2 directors and members

Foreign nationals or NRIs can also be part of the NGO board, especially in Section 8 Companies, with some additional compliance.

Related Posts

 LLP Registration Fees: How much does an LLP cost in India?

LLP Registration Fees: How much does an LLP cost in India?

Starting a business in India is an exciting journey, but it begins with one crucial decision—choosing the right business structure. For entrepreneurs, particularly those leading small and medium enterprises (SMEs), a Limited Liability Partnership (LLP) has emerged as a favoured choice. 

This is due to its unique combination of the operational flexibility of a traditional partnership and the protective shield of limited liability that separates personal assets from business obligations.

An LLP is governed by the Limited Liability Partnership Act of 2008, which provides a robust legal framework and ensures a balance between flexibility and compliance. This structure is ideal for businesses looking to scale steadily while enjoying benefits like simplified compliance procedures and protection against unlimited liability.

In this blog, we’ll explain the various expenses associated with LLP registration online in India, including mandatory fees, additional charges, and professional costs. 

Table of Contents

How Much Does an LLP Cost in India?

The cost of LLP registration in India depends on multiple factors, including government fees, professional assistance, and other associated charges. Here’s a detailed breakdown of LLP registration fees:

1. LLP Registration Fees

The government fees for LLP registration are based on the contribution amount:

  • For a contribution of up to ₹1 lakh: ₹500
  • For a contribution between ₹1 lakh and ₹5 lakhs: ₹2,000
  • For a contribution between ₹5 lakhs and ₹10 lakhs: ₹4,000
  • For a contribution above ₹10 lakhs: ₹5,000

2. Digital Signature Certificate (DSC) Fees

At least one designated partner must obtain a Digital Signature Certificate (DSC) to sign and file documents online. Depending on the certifying authority, the cost of a DSC typically ranges from ₹2,000 to ₹4,000 per partner.

3. Professional Fees

While registering an LLP can be done independently, most entrepreneurs prefer to consult professionals (legal advisors or company secretaries) to ensure compliance. These fees can vary widely depending on the platform.

4. Stamp Duty Fees

Stamp duty is state-specific and varies based on the LLP’s contribution amount and the location of its registered office. On average, stamp duty can range from ₹500 to ₹5,000.

5. Name Reservation Fees

Reserving a unique name for your LLP costs ₹200 per application. This step ensures your chosen name complies with MCA guidelines.

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Other Costs Involved in Registering an LLP in India

Apart from the mandatory registration fees, here are additional LLP registration charges to consider:

1. LLP Agreement Drafting Charges

Drafting the LLP agreement, which outlines the rights, duties, and profit-sharing ratios of the partners, typically costs between ₹2,000 and ₹10,000, depending on complexity and professional assistance.

2. Notarisation Charges

Once the LLP agreement is drafted, it needs to be notarised. The charges for notarisation depend on the contribution amount and the state in which the LLP is registered, averaging ₹500 to ₹2,000.

3. Late Filing Penalties

Timely filing of required forms is crucial to avoid penalties. For instance, the late filing fee for Form 3 (LLP Agreement) is ₹100 per day of delay. Budgeting for timely compliance ensures you avoid these avoidable costs.

Professional Legal Charges Involved in Registering an LLP in India

When setting up a business, time is of the essence, and navigating the registration process can be overwhelming, especially for first-time entrepreneurs. While the government fees for LLP registration are standardised, the professional fees for legal and compliance services can vary depending on your required scope of assistance.

Engaging a qualified professional may feel like an added expense initially, but it can save you significant time, stress, and potential errors in the long run.

Here’s why hiring a professional for your LLP registration is worth the investment:

  • Drafting the LLP Agreement: The LLP agreement is more than just a legal document—it’s the backbone of your business operations. It defines the roles, responsibilities, profit-sharing ratios, and decision-making processes among partners. 
  • Name Reservation Assistance: Choosing the right name for your LLP can be tricky. The Ministry of Corporate Affairs (MCA) has stringent guidelines to ensure uniqueness and avoid duplication.
  • Digital Signature Certificate (DSC): A Digital Signature Certificate (DSC) is mandatory for designated partners to sign and file documents electronically during the registration process. Professionals assist in obtaining the DSC efficiently, ensuring you meet this requirement without delays.

At Razorpay Rize, we simplify the registration process by offering end-to-end support, covering everything from drafting agreements and obtaining DSCs to securing name reservations. 

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Our LLP package includes:

  • Company Name Registration
  • Digital Signature Certificate (DSC) tokens
  • DSC shipping & support
  • Designated Partner’s Identification Numbers (DPIN)
  • Certificate of Incorporation(COI)
  • LLP Agreement
  • Company PAN & TAN

With our team of experts managing the legalities, you can focus on building and growing your business confidently.

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  • Service-based businesses
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Limited Liability Partnership
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  • Professional services 
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  • Firms sharing resources with limited liability 

One Person Company
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  • Freelancers, Small-scale businesses
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Private Limited Company
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  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
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1,499 + Govt. Fee
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  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
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Private Limited Company
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Limited Liability Partnership
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BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

How Much Will It Cost for LLP Registration?

LLP registration fees in India range from ₹7,000 to ₹25,000 or more, including government fees, DSC, professional assistance, and stamp duty. The exact cost depends on the contribution amount and location.

What is the Stamp Duty for LLP?

Stamp duty varies by state and contribution amount. It generally ranges from ₹500 to ₹5,000 or 0.1%–0.2% of the total contribution, depending on state regulations.

Partnership Firm Tax Rate and Tax Return Filing Explained

Partnership Firm Tax Rate and Tax Return Filing Explained

A partnership firm is a business structure where two or more individuals come together to form a business entity. Each individual in the firm is referred to as a "partner." There are two types of partnership firms: registered and unregistered. A registered partnership firm obtains a registration certificate from the Registrar of Companies, while an unregistered firm does not have one.

Partnership firm e-filing involves submitting tax returns electronically using the Income Tax Department portal. In this article, we will focus on taxation for partnership firms, including partnership firm tax rate, deductions, ITR filing requirements, and the e-filing process. Whether you're a new partnership firm or an established one, this article will provide you with the essential information to navigate the partnership firm tax rate landscape with ease.

Table of Contents

Partnership Firm Tax Rate Explained

The income tax on partnership firms in India is levied at a flat rate of 30% on the total income earned by the firm. This rate applies irrespective of the quantum of income generated. Additionally, a surcharge of 12% is applicable if the total income exceeds ₹1 crore, effectively increasing the tax rate to 33.6%. Furthermore, a health and education cess of 4% is levied on the income tax (including surcharge, if applicable).

It's important to note that there is no basic exemption limit for partnership firms, unlike individual taxpayers. Moreover, partnership firms are not subject to Minimum Alternate Tax (MAT), which is applicable to companies.

Let's compare the tax rates for partnership firms with other business structures:

  • LLP Registration: Limited Liability Partnerships (LLPs) have the same base tax rate of 30% as partnership firms. However, the surcharge for LLPs kicks in only when the total income exceeds ₹1 crore, at a rate of 12%.
  • Companies: Companies have a flat base tax rate of 30% (25% for those with a turnover of up to ₹400 crore). However, companies are also subject to MAT.
  • Individuals: The peak tax rate for individuals earning over ₹15 lakhs annually is 30%, which is the same as the flat rate for partnership firms.

Here's a simple partnership firm income tax calculation example to illustrate:

  • Total income of partnership firm: ₹10,00,000
  • Base tax rate: 30%
  • Tax amount: ₹3,00,000 (30% of ₹10,00,000)
  • Education cess: ₹36,000 (12% of ₹3,00,000)
  • Health cess: ₹12,000 (4% of ₹3,00,000)
  • Total tax payable: ₹3,48,000 (₹3,00,000 + ₹36,000 + ₹12,000)

It's important to note that the share of profit received by partners from the firm is exempt from tax and excluded from their total income. However, partners have to pay tax on remuneration and interest income received from the firm.

Tax Deductions Allowed for Partnership Firms

Understanding deductions is crucial for reducing income tax liability for partnership firms. Deductions are allowed for specific firm expenses, such as:

  • Remuneration (salaries, bonuses, or commissions) paid to partners, subject to limits
  • Interest paid to partners on capital, subject to a maximum rate of 12% p.a.

For remuneration, the allowable deduction limit is:

Book Profit Deduction Limit
On first ₹3,00,000 90% of book profit or ₹1,50,000 (whichever is higher)
On balance book profit 60%

Any remuneration or interest paid to partners in excess of these limits is not tax-deductible for the firm. It's important to note that tax deductions will not apply to payments made to partners that are not in accordance with the partnership deed or for transactions made before the partnership deed is executed.

How to File Your Tax Return for a Partnership Firm Online?

A partnership firm must file its income tax return using Form ITR-5 on the Income Tax Department’s e-filing portal. Here’s a step-by-step guide:

1. Access the Income Tax Department's e-filing portal

  • Visit www.incometax.gov.in and log in using the firm’s PAN and password.

2. Gather Required Financial Information

  • Keep financial records ready, including:
    • Profit & Loss Account
    • Balance Sheet
    • Tax computation statements
    • GST and TDS details (if applicable)

3. Fill and Submit Form ITR-5

  • Select Form ITR-5 under the “Income Tax Return” section.
  • Enter income details, deductions, and tax payments.
  • Cross-check the information before submitting, as no attachments are required.

4. Verify the Return

Verification is mandatory and can be done using:

  • Digital Signature Certificate (DSC) – Class 3: Required for all partners if the firm is subject to audit.
  • Electronic Verification Code (EVC): OTP-based verification via Aadhaar, net banking, or Demat account.

5. Audit Applicability

  • If the firm’s turnover exceeds ₹1 crore (₹50 lakh for professional firms), a tax audit is mandatory.
  • The audit report must be e-filed before submitting ITR-5, and DSC is required.

6. Submission and Record-Keeping

  • Once submitted, download and keep the ITR-V acknowledgment for records.
  • Maintain supporting documents, including books of accounts, tax payments, and financial statements, for future reference.

Following this process will ensure smooth filing of your itr for partnership firm.

What are the Deadlines for Filing a Partnership Firm Tax Return?

The income tax return filing deadlines for partnership firms in India are based on audit requirements:

  • Firms not requiring an audit must file returns by 31st July
  • Firms requiring an audit must file by 31st October
    If the partnership firm fails to file the return by the due date, the following consequences may arise:
    • A late filing fee of ₹5,000 is applicable if the return is filed after the due date but before December 31st.
    • The late filing fee increases to ₹10,000 if the return is filed after December 31st.
    • Interest under Section 234A will be levied for the delay in filing the return.
    • Penalties under Section 271F may be imposed for non-filing of the return.

It's crucial to meet these deadlines to ensure compliance and avoid penalties. Keep in mind that deadlines may change, so it's advisable to check the official website or consult Razorpay for updates and timely filing.

Common Errors While Filing Tax Returns & How to Avoid Them

Some common mistakes made while filing partnership firm tax returns include:

  1. Not obtaining a Digital Signature Certificate (DSC) for e-filing
  2. Missing the filing deadline
  3. Incorrect or incomplete details of partners
  4. Mismatch in income and expenditure as per books vs. ITR
  5. Not reporting all income sources
  6. Errors in deductions and exemptions claimed
  7. Improper verification

To avoid these errors:

  • Ensure all partners obtain a valid DSC well in advance
  • Ensure you file your return by the applicable due date to avoid penalties.
  • Maintain accurate books of accounts and reconcile with ITR figures
  • Report all income from business, investments, capital gains, etc.
  • Claim only allowable deductions and exemptions as per limits
  • Cross-check all details before submitting the return
  • Ensure that all partners participate in the verification process using DSC or EVC.

Conclusion

Understanding the partnership firm tax rate and the filing process is essential for every partnership firm in India. E-filing tax returns for a partnership firm ensures a quick, efficient, and hassle-free process. Understanding firm types, taxation rules, eligible deductions, and filing procedures helps in accurate reporting and compliance. By staying informed about the applicable tax rates, deductions, and deadlines, you can ensure timely compliance and avoid penalties. Remember to maintain accurate records, file your ITR for partnership firm using ITR-5, and verify the return with the participation of all partners. With this comprehensive guide, you are now equipped with the knowledge to navigate the partnership firm income tax landscape confidently.

Frequently Asked Questions

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Private Limited Company
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  • Service-based businesses
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Limited Liability Partnership
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1,499 + Govt. Fee
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  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
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BEST SUITED FOR
  • Freelancers, Small-scale businesses
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  • Businesses looking for single-ownership

Private Limited Company
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1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

How to file an income tax return for a partnership firm?

Partnership firms must file their income tax return using Form ITR-5. The return has to be filed electronically using a Digital Signature Certificate (DSC). Detailed income and expense statements, along with partner details, have to be provided in the return.

Can we file ITR-5 for a partnership firm?

Yes, ITR-5 is the designated form for filing income tax returns for partnership firms. It is specifically designed to capture the income details and tax computation of firms.

Is ITR-4 applicable for partnership firms?

No, ITR-4 is not applicable for partnership firms. ITR-4 is meant for individuals and Hindu Undivided Families (HUFs) having income from business or profession. Partnership firms must use ITR-5 for filing their tax returns.

Can a partnership firm file ITR-3?

No, a partnership firm cannot file ITR-3. ITR-3 is applicable for individuals and HUFs having income from business or profession. Partnership firms must file their return using ITR-5 only.

How much TDS is deducted on a partnership firm?

TDS (Tax Deducted at Source) rates for partnership firms are as follows:

  1. 10% on interest paid by banks and co-operative societies
  2. 10% on rental income exceeding ₹2,40,000 per annum
  3. 2% on payments to contractors exceeding ₹30,000 (1% if the contractor is an individual or HUF)
  4. 10% on commission or brokerage exceeding ₹15,000 per annum

Is partnership firm taxable income?

Yes, the income of a partnership firm is taxable. The firm is taxed as a separate entity at a flat base rate of 30% plus applicable cess. The share of profit received by partners is exempt, but they have to pay tax on remuneration and interest received from the firm.

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

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

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.

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