457 New Companies Were Registered Every Day In India! 1.67 Lakh Company Registrations In 2021-22
In the financial year that ended March 2021-2022, as many as 1.67 lakh companies have registered with the Ministry of Corporate Affairs.
The Ministry of Corporate Affairs has revealed that incorporations during FY 22 are 8% more than the incorporations registered during the financial year 2021.
8% Jump In Business Incorporations: Ministry of Corporate Affairs
As per reports, the maximum number of companies that were incorporated were in the business services (44,168) segment, followed by manufacturing (34,640), community, personal & social services (23,416), and agriculture & allied activities (13,387).
The states with the highest number of registrtations are Maharashtra with 31,107 companies, Uttar Pradesh registering 16,969, and Delhi with 16,323 registrations. Karnataka has 13,403 registrations, and Tamil Nadu has 11020 registrations.
As confirmed with a tweet, “During Financial Year 2021-22, Ministry of Corporate Affairs registered more than 1.67 Lakh company incorporations as compared to 1.55 Lakh companies during FY 2020-21. The incorporations during FY22 are 8% more than the incorporations during FY21: Ministry of Corporate Affairs.”
In the financial year 2018-19, MCA had registered 1.24 lakh companies and in 2019-20, 1.22 lakh companies were registered. And in the financial year 2020-21, 1.55 lakh companies were registered with the MCA.
MCA’s Measures For Ease of Business
MCA has stated that the regulatory environment is being transformed by the ministry to ensure ease of business. This is being done with the help of revising the definition of small companies which has led to reducing the compliance burden on about 2 lakh companies.
Additionally, the MCA has totally removed the fee for company incorporation up to Rs. 15 lakh authorized capital. The MCA has also introduced an incentive for incorporation of One Person Companies (OPCs). It also introduced de-criminalisation of technical & procedural violations under Companies & LLP Act.
As we had reported earlier, From February 6, 2020 the government launched a consolidated electronic form for incorporating new companies, wherein EPFO (Employees’ Provident Fund Organisation) and ESIC (Employees’ State Insurance Corporation) registration numbers will also be allotted at the same time.
In April 2020, the registration of new companies and LLPs had seen a sharp drop as a result of the nationwide lockdown imposed to contain the spread of the coronavirus.
Which seems to be recovered from June. Although the final figures for May show a little drop.
But no worries there as the overall trend so far has been of robust activity in registering businesses in the first quarter of FY22 compared to a year ago.
The results also indicate that the second covid wave had a muted impact on entrepreneurship.