Company Types & CIN
Private, public, OPC, Section 8 and LLP, and how to read a CIN.
Key facts
- A Private Limited company needs at least 2 directors and 2 members (maximum 200 members). A Public company needs at least 3 directors and 7 members.
- A One Person Company (OPC) has a single member and at least 1 director. Since 2021, OPCs have no paid-up capital or turnover cap and can convert to other types at any time.
- Every company must have at least one director who stayed in India for 182 days or more in the previous calendar year.
- There is no minimum paid-up capital for companies since 2015.
- A Section 8 company is a not-for-profit company for charity, education, art, science, sports and similar objects; it can't distribute profits to members.
- A company is incorporated through SPICe+ (INC-32), which also allots PAN, TAN, EPFO and ESIC registration, and opens a bank account. GSTIN can be applied for in the same flow (AGILE-PRO-S).
- The CIN (Corporate Identity Number) is 21 characters: listing status (L/U) + 5-digit industry (NIC) code + 2-letter state code + year of incorporation + 3-letter ownership code + 6-digit registration number.
- Common CIN ownership codes: PTC private, PLC public, OPC one person, NPL Section 8 (not-for-profit), GOI Central Government company, SGC State Government company, FTC subsidiary of a foreign company, ULT/ULL unlimited private/public, GAT/GAP guarantee and association private/public.
- An LLP gets an LLPIN in the format AAA-1234 (three letters, hyphen, four digits) instead of a CIN.
- A company must file INC-20A (declaration of commencement of business) within 180 days of incorporation, before it starts business or borrows.
Common questions
How do I read a CIN?
Take U72200MH2020PTC345678: U = unlisted (L = listed), 72200 = industry (NIC) code, MH = Maharashtra, 2020 = year of incorporation, PTC = private limited company, 345678 = registration number at the ROC. Use the ID Decoder on the Tools page to decode any CIN.
What is the difference between a private and a public company?
A private company restricts share transfers, can't invite the public to subscribe, and needs 2 directors and 2 members (max 200). A public company needs 3 directors and 7 members, can raise money from the public, and has more compliance: independent directors and committees above set limits.
Who can form an OPC?
Any natural person who is an Indian citizen, including an NRI who stayed in India at least 120 days in the previous financial year. A person can form only one OPC and must name a nominee.
What is PTC in a CIN?
PTC means a private limited company. PLC is a public limited company, OPC is a one person company and NPL is a Section 8 (not-for-profit) company.
What is INC-20A?
The declaration of commencement of business. Every company with share capital must file it within 180 days of incorporation, confirming that subscribers have paid for their shares. Late filing attracts a penalty, and the ROC can strike the company off.
Is there a minimum capital to start a company?
No. Minimum paid-up capital was removed in 2015. You can start with any amount, even ₹1,000 split among the subscribers.
What is an LLP and how is it different from a company?
A Limited Liability Partnership combines a partnership's flexibility with limited liability. It needs 2 designated partners, has no share capital, files Form 11 and Form 8 every year, and needs an audit only if turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh.
Sources
- Companies Act, 2013 (as amended)