The increase in company registrations is significant as it is the highest compared to the previous years.
Incorporation of companies has witnessed a major rise during the financial year 2021-22. As per the Ministry of Corporate Affairs (MCA) statistics, the MCA registered more than 1.67 lakh companies during the period. Considering that the number of company incorporations had stood at 1.55 lakh during financial year 2020-21, the fiscal 2021-22 numbers have shown a climb.
The rise comes as significant considering that number of companies incorporated during financial year 2020-21 was the highest compared to any of the previous years. The incorporation of companies during fiscal 2021-22 is 8 percent more than the incorporations during FY 2020-21.
Company registrations in previous fiscal stood at 1.55 lakh
While the Ministry of Corporate Affairs had registered 1.24 lakh companies during fiscal 2018-19 and 1.22 lakh companies in fiscal 2019-20 respectively, it had registered 1.55 lakh companies during financial year 2020-21.
Starting a business in the country has been made easier over the years. As part of the Union government’s project towards ensuring Ease of Doing Business, the Ministry of Corporate Affairs had unveiled several initiatives, which have, in turn, helped save many procedures, time and cost as an entrepreneur goes about kick-starting a business in India.
The many measures by MCA include the SPICe+ form, which was launched in February 2020. The SPICe+ form had integrated as many as 11 different services, across three Union Ministries and Departments such as Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance; three state governments, such as Maharashtra, Karnataka and West Bengal; and the National Capital Territory of Delhi.
The SPICe+ form has included Name Reservation; Company Incorporation; Director Identification Number; EPFO Registration No.; ESIC Registration Number; PAN; TAN; Professional Tax Registration Number for the state of Maharashtra, Karnataka and West Bengal; Bank Account number and GSTN Number (on Optional basis); and Shop and Establishment Registration No. for NCT of Delhi.
Making Ease of Doing Business possible
During fiscal 2021-22, states that recorded the highest number of registrations were Maharashtra (31,107 companies) followed by Uttar Pradesh (16,969 companies) Delhi (16,323 companies) Karnataka (13,403 companies) and Tamil Nadu (11,020 companies).
While the maximum number of companies incorporated fell under the Business Services category with 44,168 companies, manufacturing with 34,640 companies; community, personal and social Services with 23,416 companies; and agriculture & allied activities with 13,387 companies, followed.
The Ease of Doing Business initiative has been looking to bring about total transformation in the regulatory environment, said MCA sources. Measures such as revision of definition of small companies have reduced compliance burden on about 2 lakh companies. Similarly, zero MCA fee for company incorporation up to Rs 15 lakh authorised capital; incentivisation of incorporation of One Person Companies (OPCs); and de-criminalisation of technical and procedural violations under Companies & LLP Act, have also helped a lot on this front.