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MCA EoDB Boosts Company Incorporations

New Delhi: Ministry of Corporate Affairs (MCA) registered more than 1.67 Lakh company incorporations during Financial Year 2021-22 as compared to 1.55 Lakh companies during FY 2020-21.

Rajesh Verma, Secretary Corporate Affairs has recently reviewed the Ease of Doing Business (EoDB) efforts of the MCA, which has led to steady increase in the registration of new companies.

The increase is significant considering that number of companies incorporated during Financial Year 2020-21 were the highest in any of the previous years.

The incorporations during FY 2021-22 are 8 Percent more than the incorporations during FY 2020-21.

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.

As part of Government of India’s drive for Ease of Doing Business (EoDB), the MCA has taken many initiatives thereby saving as many procedures, time and cost for starting a business in India.

The MCA launched SPICe+ form in February 2020 and also integrated 11 different services, Name Reservation, Company Incorporation, Director Identification Number, EPFO Registration No., ESIC Registration Number, PAN, TAN  across 3 Central Government Ministries/Departments (Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance).

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 FY 2021-22, the States having 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).

In fact the MCA is continuously striving to transform regulatory environment and has taken several measures in recent past towards EoDB including, Revision of Definition of Small Companies which has reduced compliance burden on about 2 lakh companies, Zero MCA fee for company incorporation up to Rs 15 lakh authorised capital, Incentivization of incorporation of One Person Companies (OPCs) and De-criminalisation of technical & procedural violations under Companies & LLP Act.