PRIVATE LIMITED COMPANY REGISTRATION HAS INCREASED IN INDIA INSPITE OF PANDEMIC
PRIVATE LIMITED COMPANY REGISTRATION
The Covid-19 pandemic
has not been able to dampen the spirit of entrepreneurial spirit in India and
many new private limited company registration has taken place during last 2 years of pandemic.
This is quite
remarkable since there has been economic and business uncertainty owing to
pandemic and still Indian businessmen were quite upbeat with their
entrepreneurial spirit.
After hitting an
all-time law company
registration in India
in
April 2020, there has been month on month growth in new private limited company
registration in India.
As per MCA database,
the number of private limited company registration was only 3,209 in April 2020
which slowly and steadily gained momentum and crossed 16000 registrations in
July 2020 which again rose to 17,324 companies in March 2021. Between September
2021 to January 2022, there has been consistent rise in new company
registration and number ranges between 15,000 to 20,000 new company registrations.
There has been several sectors which remain unaffected by the pandemic like consumer goods, financial services and healthcare sector. Further, digital and technology based companies have really benefitted during this period and lot of new private limited company registration took place in technology sector.
Another sector which has witnessed growth in company registration has been business service sector which comprises of Information technology, Consulting, Accounting, Law and Research and Development sector.
As per data available, Business services in India has highest number of registrations followed by other sectors like manufacturing, trading and construction.
Even during the lockdown, entire service sector were more or less active which has seen increase in new registrations under this area. There were very less registrations under trading and manufacturing sector during this period. This is mainly because of restriction in movement and capacity utilization.
If we talk about number of active companies in India, Maharashtra is at top with approx.. 2.65 lac active companies, and then comes New Delhi with 2.18 lac active companies followed by West Bengal with 1.33 lac active companies. Total number of companies registered in India is approx. 24 lac out of which active companies in India is approx. 14.14 lac.
Out of aforesaid registered companies, approx. 7.73 lac companies were closed, approx. 2000 companies are dormant, approx. 7,000 companies are under liquidation and approx.. 36,000 companies were in the process of being struck-off.
Some of the reasons for increase in company registration in India are as under:
1) There has been increase in startup culture in the country and more and more young entrepreneurs want to become entrepreneurs and become unicorns.
2) Due to digitization of the economy, more and more informal businesses has been forced to come under formal system of economy.
3) Due to the introduction of GST and e-way bills, the government can keep proper track record of the defaulters of taxes which has also put pressure on the businessmen to regularize everything and become part of main economy
4) Due to stiff completion in the market, new players have to compete with the best in the businesses and accordingly, they need to present themselves and their company in a manner which is appreciable and meeting the norms of the business culture.
.All the aforesaid factors have contributed in huge surge in new private limited company registration in India which is great sign for Indian economy and overall growth of the country.nomy and overall growth of the country.
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