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MCA's efforts to improve EoDB leads to a huge jump in new company formations
By By Rakesh Ranjan- 19 Apr 2022
1319New Delhi (19.04.2022): The incorporation and registration of new companies in FY22 recorded a significant jump of eight percent to more than 1.67 Lakhs versus 1.55 Lakh during FY21. It may be noted that the FY21 registrations were in themselves higher than any of the previous years. It is pointed out that while MCA had registered 1.24 lakh companies during FY19 and 1.22 lakh companies in FY20 respectively, it had registered 1.55 Lakh companies during FY21. This steady increase in the registration of new companies is attributed to the Government's drive to the Ease of Doing Business (EoDB) motto that made MCA introduce many new procedures to save time and cost for starting a business in the country. Among the changes effected by MCA, the launching of the SPICe+ form in February 2020 and the integration of 11 different services mentioned below across 3 Central Government Ministries/Departments (Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance), 3 State Governments (Maharashtra, Karnataka and West Bengal), and NCT of Delhi were the major incentives for incorporation and registration of new companies. The 11 different services where integration was effected were Name Reservation, Company Incorporation, Director Identification Number, EPFO Registration No., ESIC Registration Number, PAN, TAN, Profession Tax Registration Number for the state of Maharashtra, Karnataka, and West Bengal, Bank Account number and GSTN Number (on Optional basis), and Shop and Establishment Registration No. for NCT of Delhi. During FY22, the States recording 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). The MCA is said to be engaged in continuous striving to transform the regulatory environment to further improve EoDB by way of the Revision of Definition of Small Companies which has reduced the compliance burden on about 2 lakh companies. Similarly, the Zero MCA fee for company incorporation up to Rs 15 lakh authorized capital is another contributory factor like the Incentivisation of incorporation of One Person Companies (OPCs) and de-criminalization of technical & procedural violations under the Companies & LLP Act. (By Rakesh Ranjan)
MCA's efforts to improve EoDB leads to a huge jump in new company formations
By By Rakesh Ranjan - 2022-04-19 09:45:00
New Delhi (19.04.2022): The incorporation and registration of new companies in FY22 recorded a significant jump of eight percent to more than 1.67 Lakhs versus 1.55 Lakh during FY21. It may be noted that the FY21 registrations were in themselves higher than any of the previous years.
It is pointed out that while MCA had registered 1.24 lakh companies during FY19 and 1.22 lakh companies in FY20 respectively, it had registered 1.55 Lakh companies during FY21.
This steady increase in the registration of new companies is attributed to the Government's drive to the Ease of Doing Business (EoDB) motto that made MCA introduce many new procedures to save time and cost for starting a business in the country.
Among the changes effected by MCA, the launching of the SPICe+ form in February 2020 and the integration of 11 different services mentioned below across 3 Central Government Ministries/Departments (Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance), 3 State Governments (Maharashtra, Karnataka and West Bengal), and NCT of Delhi were the major incentives for incorporation and registration of new companies.
The 11 different services where integration was effected were Name Reservation, Company Incorporation, Director Identification Number, EPFO Registration No., ESIC Registration Number, PAN, TAN, Profession Tax Registration Number for the state of Maharashtra, Karnataka, and West Bengal, Bank Account number and GSTN Number (on Optional basis), and Shop and Establishment Registration No. for NCT of Delhi.
During FY22, the States recording 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).
The MCA is said to be engaged in continuous striving to transform the regulatory environment to further improve EoDB by way of the Revision of Definition of Small Companies which has reduced the compliance burden on about 2 lakh companies. Similarly, the Zero MCA fee for company incorporation up to Rs 15 lakh authorized capital is another contributory factor like the Incentivisation of incorporation of One Person Companies (OPCs) and de-criminalization of technical & procedural violations under the Companies & LLP Act.
(By Rakesh Ranjan)
