Corporate Identification Number Vs Company Registration Number: Comparative Analysis
One of the most crucial steps in beginning a business is registering your firm with the government. In order to identify your business for legal and regulatory purposes, you must complete this registration process and get a special identification number. The Company Registration Number (CRN) and the Corporate Identification Number (CIN) are two identifiers that businesses frequently use in India. These two identification numbers will be compared and contrasted in this blog post, and we’ll provide some insights into how their usage and benefits vary.
What is Corporate Identification Number (CIN)?
Businesses that are incorporated in India are given a Corporate Identification Number (CIN), a unique identification number, by the Ministry of Corporate Affairs (MCA). A company’s CIN, which is made up of 21 alphanumeric numbers, can be used to find out details about it, such as where it is located, when it was founded, and what kind of business it is. The CIN is a crucial piece of information for any company doing business in India because it is required for all legal and regulatory filings. This number helps the government keep tabs on the operation of the company and make sure that pertinent laws and regulations are being obeyed.
What is Company Registration Number (CRN)?
When a company registers with the Registrar of Companies (ROC), it is given a Company Registration Number (CRN), a special identification number. A company’s name, address, and incorporation date are identified by the CRN, a seven-digit number that serves as a unique identifier. Similar to the CIN, the CRN is likewise necessary for every legal and regulatory filing the company makes. This number assists the government in monitoring the company’s operations and ensuring adherence to numerous rules and regulations.
Key Features of CIN and CRN
Both the CIN and CRN have somewhat same features. Some of the features of CIN and CRN are as follows:
- Unique number: Both the CIN and CRN are unique which means that no other company can have the same CIN or CRN.
- Perpetual in nature: Once the CIN and CRN are assigned to the company, It will continue to exist permanently and it remains the same throughout the lifespan of the company even if it changes its location.
- Public record: Both the CRN and CIN are available on public domains and can be accessed by anyone who wishes to verify the company’s authenticity.
- Used for legal purposes: The CRN and CIN are utilised for official tasks like submitting tax returns, creating bank accounts, and making licence applications.
Key Differences between CIN and CRN
Both the CIN and CRN are distinctive identifying numbers that the Registrar of Companies (ROC) issues to Indian corporations at the time of incorporation. Although they have comparable objectives, there are some significant variations between the two:
- Meaning and Usage: A unique number known as the Corporate Identification Number (CIN) is given to a corporation to indicate its legal status. It serves as proof that the business is registered with the Registrar of Companies (ROC). The firm Registration Number (CRN), on the other hand, is a special identifying number given to a firm and utilised for administrative functions. It is utilised to monitor the business’ adherence to numerous rules and regulations.
- Digit Format: The CIN and CRN have different formats as well. Each company’s CRN is a distinct 21-digit alphanumeric number. The ROC where the company was registered is represented by the first three numbers of the CRN, which is then followed by a hyphen and a 6-digit unique identification number. The CRN concludes with the corporate registration number and the year of registration. The CIN, on the other hand, is a 21-digit alphanumeric number that begins with the letter “U” or “L,” followed by 2 alphabets, 5 numeric digits, and 4 numeric digits.
- Process of Application: A company receives a CRN after it is incorporated, which means that it receives it once the registration process is complete. The government and other administrative bodies use this number to monitor how well the business complies with numerous laws and regulations. The CIN, on the other hand, is provided to the company after the registration process is complete. Each organization’s specific version of it serves to define the company’s legal position.
- Verification and Identification: Although both numbers can be used to identify and authenticate a person or thing, the CRN is generally used to identify the company, and the CIN is primarily used to confirm the legal status of the corporation. By using the CIN, anyone or any organization can access the public record to confirm the legitimacy and legal standing of a company.
- Reputation: A company’s reputation gains credibility when its CIN and CRN are legitimate. However, because it symbolises the company’s legal standing, the CIN is regarded as being more significant in building a company’s reputation. A company’s reputation is strengthened by the perception that it is legitimately registered and conducting business in India if it has a current CIN.
Businesses formed in India receive both a Corporate Identification Number (CIN) and a Company Registration Number (CRN), which are both distinctive identification numbers. They are essential to a company’s legal and regulatory processes, assist the government in keeping an eye on their operations, and guarantee that numerous laws and regulations are being followed. Even while both numbers have some characteristics, they also differ significantly in terms of usage, meaning, digit format, application process, verification and identification, and reputation.
The CIN is unique to each organization and serves as evidence of a company’s legal standing. It helps to confirm a corporation’s legal status and can be used to get access to public records to verify a company’s legitimacy. Contrarily, a CRN is a unique identification number that is given to a company in order to monitor its adherence to a number of rules and regulations.
Read our Article:Private Limited Company Registration in India: A Comprehensive Guide