Manufacturing, construction, power sectors witness highest number of new registrations
New Delhi, April 18. The registration of new companies in India reached an all time high last year ( 2021-22). According to the data of Ministry of Corporate Affairs (MCA) more than 1.67 Lakh companies were incorporated during the period compared to 1.55 Lakh companies during FY 2020-21.
The increase is significant considering that number of companies incorporated during FY 2020-21 was the highest in any of the previous years. But the incorporations during FY 2021-22 are 8% more than the incorporations during FY 2020-21. While MCA had registered 1.24 lakh companies during FY 2018-19 and 1.22 lakh companies in 2019-20 respectively, it had registered 1.55 Lakh companies during FY 2020-21.
As part of Government of India’s drive for Ease of Doing Business (EoDB), the MCA has taken many initiatives thereby saving as many procedures, time and cost for starting a business in India, said an official press release.
The MCA launched SPICe+ form in February 2020 and also integrated 11 different services. During FY 2021-22, the states having 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).
Sector wise, the maximum number of companies were incorporated in the Business Services (44,168 companies), followed by Manufacturing (34,640 Companies) Community, personal & Social Services (23,416 companies) and Agriculture & Allied Activities (13,387 companies).
Manufacturing, Construction and Power sector
The categories within industry which saw the highest number of new incorporations are manufacturing, construction & power, gas and water sectors. While manufacturing sector witnessed 50 percent rise in the number of registration of new companies, construction sector recorded 38 percent rise in registration of new companies and electricity, gas and water registered 13 percent rise in the number of new company registrations, said an official press release.
The MCA is continuously striving to transform regulatory environment and has taken several measures in recent past towards EoDB like:-revision of definition of small companies which has reduced compliance burden on about 2 lakh companies, 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 & procedural violations under Companies & LLP Act.
