BENGALURU: India registered 1.67 lakh new companies in FY22, the highest ever in any of the previous years, as per the Ministry of Corporate Affairs. The rise in number of registrations is significant as last year too, the number of newly-registered firms were at a record-high.
“The incorporations during FY2021-22 are 8% more than the incorporations during FY2020-21. 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,” the ministry said.
The increase is on account of various initiatives taken by the government including the drive for ease of doing business, which led to time and cost-saving to start a business in the country. During FY 22, the States having the highest number of registrations were Maharashtra (31,107 companies), followed by Uttar Pradesh (16,969), Delhi (16,323) Karnataka (13,403), and Tamil Nadu (11,020).
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), said the government release.
The Centre has taken several measures in recent past towards ease of doing business like a revision of the definition of small companies, which subsequently reduced compliance burden on nearly 2 lakh firms, zero MCA fee for company incorporation up to Rs 15 lakh authorised capital, incentivisation of incorporation of one-person companies (OPCs), de-criminalisation of technical & procedural violations under Companies & LLP Act.
Ease of doing business
The increase in registrations of new companies is on account of initiatives taken by the govt including drive for ease of doing business, shows MCA data