All you need to know about Company Registration Number and How to verify Company Registration Number?

In India, all companies are required to register with the Ministry of Corporate Affairs (MCA) before they can start operating. The registration process involves obtaining a unique identification number known as the Company Registration Number (CRN). The CRN is an essential requirement for conducting business in India, and it serves as proof of a company’s legal existence. Verifying a Company’s Registration Number is essential for various purposes, such as ensuring the legitimacy of a business, establishing partnerships, or conducting due diligence. In this article, we will provide you with a step-by-step guide on how to verify a Company Registration Number, ensuring you have accurate and reliable information.

Understanding Company Registration Numbers

Before diving into the verification process, it’s crucial to understand what a company registration number entails. Company Registration Numbers serve as a distinct identifier for a business, confirming its legal existence and registration status. These numbers are typically assigned by government agencies or commercial registers and vary in format and structure across different jurisdictions.

A Company Registration Number is a unique identification number assigned to every company registered in a specific country. It is used to track and identify a company’s information, such as its registration date, business type, and other vital details. The Company Registration Number can be found on the company’s registration documents, including the certificate of incorporation, memorandum, and articles of association.

Company Registration Number, also known as Corporate Identity Number (CIN), is a unique 21-digit alpha-numeric code assigned by the Registrar of Companies (ROC) to all companies registered in India. It serves as a proof of the company’s legal existence and authenticity. Verifying the CIN of a company is an essential step to ensure that you are dealing with a legitimate business entity. The first two digits of the CRN represent the state in which the company is registered, followed by a four-digit number that represents the year of registration. The remaining 15 digits are a unique identification number assigned to the company.

Importance of Company Registration Number

The CRN is an essential requirement for companies in India, and it is mandated by law. Here are some of the key reasons why the CRN is so important:

• Legal Compliance: All companies in India are required to register with the MCA and obtain a CRN to comply with the law. Failure to do so can result in legal penalties and fines.
• Business Expansion: A registered company with a CRN can expand its operations and take advantage of business opportunities without any legal barriers.
• Investor Confidence: Investors are more likely to invest in a registered company with a CRN, as it shows that the company is legitimate and operating within the legal framework.
• Access to Government Benefits: Registered companies with a CRN are eligible for various government schemes and benefits, such as tax exemptions and subsidies.

Benefits of Company Registration Number

The CRN is essential for companies in India for several reasons. Here are some of the key benefits of having a CRN:

• Legal Existence: The CRN is proof of a company’s legal existence, which is crucial when conducting business transactions. It is also required for opening a bank account, obtaining loans, and filing tax returns.
• Business Credibility: A company with a CRN has more credibility than one without. It shows that the company is registered and operating legally, which can help to build trust with customers and business partners.
• Limited Liability: A registered company has limited liability protection, which means that the personal assets of its directors and shareholders are protected in the event of business failure or legal issues.
• Brand Protection: Registering a company with a unique name and obtaining a CRN helps to protect the company’s brand from being copied or misused by others.

Before we move on to discuss about the verification of Company Registration Number, let us first delve into the procedure which describes about How can we obtain the Company Registration Number as it becomes feasible to understand this notion correctly.

How to obtain Company Registration Number in India?

India is a growing hub for startups and entrepreneurs, and many new businesses are being established every day. However, one of the essential steps in setting up a company in India is to obtain a Company Registration Number (CRN). The CRN is a unique identification number assigned to every registered company in India. It is a crucial document that is required for various legal and compliance-related purposes. Following is the step to be followed for obtaining Company Registration Number:

• Decide on the Type of Company: Before proceeding with the registration process, it is essential to determine the type of company you wish to register. The options available in India include private limited companies, public limited companies, one-person companies, and more. Each type has its own set of requirements and regulations, so it is important to choose the most suitable option for your business.

• Obtain Digital Signature Certificates (DSC): To initiate the registration process online, the first step is to obtain Digital Signature Certificates (DSC) for the proposed directors or signatories of the company. The Ministry of Corporate Affairs (MCA) requires digital signatures to ensure the authenticity and security of online documents.

• Apply for Director Identification Number (DIN): Next, the proposed directors of the company must apply for Director Identification Number (DIN) from the MCA. DIN is a unique identification number assigned to individuals who wish to become directors of a company in India. It can be obtained by submitting the necessary forms and supporting documents to the MCA.

• Name Approval: Choosing a unique and appropriate name for your company is crucial. You need to check the availability of the desired company name through the MCA’s online portal. The name should comply with the naming guidelines and should not violate any existing trademarks or copyrights. Once the name is approved, it remains valid for 20 days, during which you need to complete the registration process.

• Prepare and File Incorporation Documents: Once the name is approved, you need to prepare the necessary incorporation documents. These documents include the Memorandum of Association (MOA) and the Articles of Association (AOA). These documents outline the company’s objectives, rules, and regulations. It is advisable to seek professional assistance in preparing these documents to ensure compliance with legal requirements.

• Submit Application for Company Registration: Once the incorporation documents are ready, you can proceed to submit the application for company registration online through the MCA portal. The application should include the necessary forms, the MOA, the AOA, and other supporting documents, such as address proof, identity proof, and proof of registered office.

• Obtain Company Registration Number (CRN): After successfully submitting the application, the MCA will review the documents and process the application. If everything is in order and there are no discrepancies, the MCA will issue a Certificate of Incorporation along with the Company Registration Number (CRN). The CRN serves as a unique identifier for your company.

Let us now move on to discuss about the procedure of verification of Company Registration Number in detail.

Why is it important to verify a Company Registration Number?

Verifying a company registration number is essential to ensure that a company is legitimate and registered with the appropriate authorities. It is also crucial to confirm that the company’s information is up-to-date and accurate. In addition, verifying a company’s registration number can prevent you from falling victim to fraudsters who set up fake companies to scam unsuspecting individuals.

How to verify Company Registration Number?

When dealing with companies in India, it is essential to verify their registration status to ensure their legitimacy and credibility.  Verifying the CRN helps in confirming the company’s existence, legal status, and other important details. Following is the step to verify the Company Registration Number:

• Obtain the Company’s CRN: The first step is to obtain the Company Registration Number of the company you wish to verify. The CRN can usually be found on the company’s website, official documents, or any communication from the company.
• Visit the Ministry of Corporate Affairs (MCA) Website: The Ministry of Corporate Affairs is the governing body responsible for company registration and regulation in India. Visit the MCA Website and proceed to the “MCA Services” section.
• Access the ‘MCA21’ Portal: Under the MCA Services section, click on the ‘MCA21’ portal. MCA21 is an online portal that provides various services related to company registration and compliance.
• Choose ‘View Company/LLP Master Data’: On the MCA21 portal, you will find a list of services. Click on ‘View Company/LLP Master Data’ to proceed with the verification process.
• Enter the Company’s CRN: In the ‘View Company/LLP Master Data’ section, you will be prompted to enter the Company Registration Number (CRN) of the company you want to verify. Input the CRN and click on the ‘Search’ button.
• Review the Company Information: After entering the CRN and clicking on ‘Search,’ the MCA portal will display the company’s master data. This includes information such as the company’s name, registered office address, date of incorporation, company type, authorized capital, directors’ details, and more.
• Cross-Check the Information: Take a careful look at the displayed information and cross-check it with the details provided by the company. Ensure that the company’s name, registered address, and other particulars match the information you have. Discrepancies in the data could indicate potential issues.
• Verify the Company’s Current Status: In addition to the master data, the MCA portal also provides the current status of the company. It will indicate whether the company is active, dormant, or struck off. Ensure that the company’s current status aligns with what you expect.
• Access Additional Documents (if required): The MCA portal allows you to access various documents related to the company, such as the company’s annual financial statements, director’s report, and more. If you require more detailed information, you can explore these additional documents.
• Seek Professional Assistance (if necessary): If you encounter any difficulties during the verification process or if you require further clarity, it is advisable to seek professional assistance from a qualified company secretary, lawyer, or Chartered Accountant. They can guide you through the process and help address any concerns.

Connect to our Experts at Legal Window they will guide you through the process of verifying Company Registration Number in most efficient manner and will also guide you through other Compliances regarding Company Incorporation.

Conclusion

Verifying a company’s registration number is a crucial step in establishing trust and mitigating risks while conducting business in India. The Ministry of Corporate Affairs’ online portal offers a convenient method to access and validate company details. However, it is essential to cross-check the information obtained through various sources and, if needed, seek professional assistance. By following these steps and conducting due diligence, you can make informed decisions and protect your interests when engaging with Indian companies.