MCA registers 1.55 lakh company incorporations in FY 2020-21, an increase of 27% year-on-year

During the Financial Year 2020-21, Ministry of Corporate Affairs (MCA) registered more than 1.55 Lakh company incorporations 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.

As part of Government of India’s drive for Ease of Doing Business, the MCA has taken many initiatives thereby saving as many procedures, time and cost for starting a business in India. The Central Registration Centre (CRC) continued to function even during the lockdown to enable stakeholders to incorporate Companies and LLPs.

The MCA launched SPICe+ form in February 2020 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), viz;

• 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)

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 authorised capital
• Incentivisation of incorporation of One Person Companies (OPCs)
• De-criminalisation of technical & procedural violations under Companies Act