Indian Economy News

MCA registers highest ever 1.67 lakh companies in FY 2021-22

The Ministry of Corporate Affairs (MCA) registered over 1.67 lakh new companies in FY22, compared to 1.55 lakh in FY21, an 8% YoY growth. The growth is significant, considering that the FY21 number was already the highest annual number of all time.

During FY22, the states having the highest number of company registrations were Maharashtra (31,107), 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 business services (44,168), followed by manufacturing (34,640), personal & social services (23,416), and agriculture & allied activities (13,387).

As part of the Government of India's Ease of Doing Business (EoDB) effort, the MCA has taken several steps to reduce the number of procedures, time, and costs associated with launching a business in India:

In February 2020, the MCA launched the SPICe+ form, which integrated 11 different services (such as PAN, company incorporation, GSTN number, etc.) from three Central Government Ministries/Departments (Ministry of Corporate Affairs, Ministry of Labour, and Department of Revenue in the Ministry of Finance), three State Governments (Maharashtra, Karnataka, and West Bengal), and the National Capital Territory of Delhi.

The revision in the definition of a small business has resulted in a reduction in the compliance burden for around 2 lakh businesses.

Zero MCA fee for company incorporation up to Rs. 15 lakh (US$ 19,641) authorised capital.

Incentivisation of incorporation of One Person Companies (OPCs).

Under the Companies and LLP Act, technical and procedural infractions are no longer considered criminal offences.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.