Over 15,300 companies set up in August

livemint.com:

New Delhi: Over 15,300 companies and 4,668 limited liability partnerships (LLPs) were registered in August, as per available from the ministry of corporate affairs, indicating that the process of incorporation of businesses in the new high security forms is going smoothly. The number of companies set up last month is about 6% more than the over 14,400 companies formed in August last year. In the first five months of this financial year, over 79,300 companies were registered against 78,118 companies set up in the same time a year ago.

In August 2022, 3,918 LLPs were incorporated. The improvement in numbers is in spite of the roll out of new high security forms with two-factor authentication in the revamped MCA21 portal in January this year, which initially saw some teething troubles before stabilising. The figures also suggest the appetite for entrepreneurship remains steady.

Incorporation of companies indicate investment intent with initial funding going into the entities as paid up capital. However, the actual commencement of operation depend on a host of economic factors. Some investors also open up companies to hold certain assets.

Data from the ministry also show that the number of active companies in the country have now crossed the 1.6 million mark after taking into account dormant entities and those struck off from the register for being defunct. The government routinely strikes off companies that have not filed annual returns for previous two consecutive years. In the case of LLPs, the ministry has now offered an amnesty scheme for businesses to make good their past defaults in filing annual returns and start afresh.