New business registration vaults toward 2 lakh as entrepreneurship spirit sweeps India: SBI Ecowrap

According to the State Bank of India's Economic Research Department's most recent SBI Ecowrap report, the number of new companies registered in India in 2023 will soar towards 2 lakh, compared to only 45,600 on average every year between 1980-2018.

Over 1.67 lakh companies were incorporated in FY22 as opposed to 1.55 lakh enterprises in FY21, according to the data from the Ministry of Corporate Affairs. In FY19 and FY20, respectively, the ministry registered 1.24 lakh and 1.22 lakh companies.

According to the Ecowrap report, small businesses with an authorised capital of less than US$ 122,062.3 (Rs. 1 crore) and about 90% ownership accounted for the majority of new company registrations through March, 2022.

In FY22, the business services sector saw the most company formations-44,168, which was followed by manufacturing (34,640), community, personal, and social services (23,416 companies), and agriculture & associated activities (13,387 companies).

The government introduced SPICe+, an integrated web form that offers 11 services related to commencing a business, including name reservation, incorporation, PAN, TAN, DIN, Employees' Provident Fund Organisation (EPFO) registration, Employees' State Insurance Corporation (ESIC) registration, GST number, bank account number, Profession Tax registration (Mumbai, Kolkata, and Karnataka), and Delhi Shops and Establishment registration.

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