MCA: Year on Year in FY 2020-21, Company Incorporation increased by 27%, LLP Incorporation by 17%

Financial Year 2020-21 has been very crucial for everybody. A lot of businesses has failed due to the lockdown given because of the COVID 19. Amid all the chaos of pandemic, the economy of India seemed to be drowning with no hope of revival. However, as they say “India is meant to fight with the odds”, the Indian Economy has risen up again with a bang. As per one of the notification published by MCA, Company Incorporation has risen by 27% while the LLP Incorporation increased by 17% in the Financial year 2020-21, despite all the hurdles that COVID 19 has thrown.

Suggested Read: Revival of Indian Economy post COVID 19

According to the latest notification published by PIB on April 01.04.2021, MCA quoted,

“During the Financial Year 2020-21, Ministry of Corporate Affairs (MCA) registered more than 1.55 Lakh company incorporation as compared to 1.22 Lakh companies during FY 2019-20, an increase of about 27%. Similarly, 42,186 Limited Liability Partnerships (LLPs) got incorporated as against 36,176 last year, an increase of about 17%. The increase is significant considering the unprecedented situation faced by the country due to COVID-19 pandemic.”

Further, the report said that the Government of India has taken the drive for “Ease of Doing Business” to another level by taking such initiatives that resulted in saving time, cost and resources via minimization of the procedures of starting a business in India. To ease the hurdles of the stakeholders coming in way of Incorporation of company and LLP, the Central Registration Centre (CRC) continued to function even during the Lockdown.

The PIB report also mentioned the SPICe+ form for company incorporation that was launched earlier in the year 2020 in the month of February and thereby integrating 10 different services across 3 Central Government  Ministries/Departments (Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance) and 3 State Governments(Maharashtra, Karnataka and West Bengal), namely,

• Name Reservation
• Company Incorporation
• Director Identification Number
• EPFO Registration Number
• 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)

This proves that the MCA is continuously striving to transform regulatory environment and has taken several measures in recent past towards Ease of Doing Business like;

• 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 authorized capital
• Incentivization of incorporation of One Person Companies (OPCs)
• De-decriminalization of technical & procedural violations under Companies Act

Source: pib.gov.in