Business Identification Number: What is it?

Definition

The Business Identification Number (BIN) is a unique identifier assigned to businesses for the purpose of identification and tracking in various business-related transactions and interactions.

What is a Business Identification Number?

BINs may vary depending on the jurisdiction and context, but they generally serve as a standardised way to reference and differentiate businesses. It is a unique alphanumeric code assigned to each business entity, separating it from other businesses. It is typically issued by a government agency, regulatory authority, or business registry as part of the business registration process.

The authority responsible for assigning BINs may vary depending on the jurisdiction and the type of business. In some cases, BINs are issued by government agencies or departments responsible for business registration. In other cases, BINs may be assigned by industry-specific regulatory bodies or trade associations. The length and structure of BINs may also vary, with some jurisdictions using shorter or longer codes depending on their needs.

BINs are considered sensitive information and are typically treated as confidential by businesses and regulatory authorities. They may be subject to privacy and data protection laws to ensure that they are used and disclosed appropriately and securely.

In some cases, BINs may be integrated with other business identifiers. This integration helps streamline administrative processes and ensures consistency in business identification across different systems and jurisdictions.

Example of a Business Identification Number (BIN)

Let’s say John owns a small construction company called “John’s Builders Ltd.” and wants to register his business with the government. He applies for a Business Identification Number from the local business registry office.

After reviewing John’s application and verifying his business information, the registry office assigns a unique BIN to John’s Builders Ltd. The BIN is a 10-digit alphanumeric code, such as “JB1234567X.”

With the assigned BIN, John’s Builders Ltd. can now use this unique identifier when conducting business transactions, opening bank accounts, filing taxes, and interacting with government agencies.