Over 17,000 companies set up in May
The paid-up capital of all companies set up in May is ₹722 crores and authorised capital is ₹2,611 crores
PremiumNEW DELHI : Over 17,000 companies were set up in May, taking the total number of new companies incorporated since the beginning of the year to over 33,600, official data from the ministry of corporate affairs showed indicating that entrepreneurship is on a strong footing.
The paid-up capital of all companies set up in May is ₹722 crores and authorised capital is ₹2,611 crores. Agriculture and allied activities accounted for over 900 companies set up in May, while business services accounted for over 2,480 and over 2600 were manufacturing companies. The rest included real estate and renting, construction, community-personal-and-social services, trading, finance, transport and storage and communication, data showed.
In April, over 16,000 companies were formed. Incorporation of companies indicate investment intent and pooling of funds as well as a thriving economy offering investment opportunities and potential for job creation. However, several economic factors would play a role in these companies eventually commencing operations and taking off. At times, companies are formed for legal reasons as part of restructure efforts or to hold assets including intellectual property. The number of company registrations in May also indicates the ministry's revamped portal for statutory filings, MCA21 version three is working fine.
Data showed that India has over 1.5 million active companies, most of which are private limited companies. While private limited companies are more in number, public limited companies, which are required to follow higher degree of reporting requirements, account for a larger share of paid-up capital. Business services account for nearly a third of all active companies, followed by manufacturing which accounts for a little over a fifth of all active companies. About 13% of companies are in trading.
Maharashtra, Uttar Pradesh and Delhi remain the top three states reporting the highest number of new company registrations. The government routinely removes defunct companies from the official register as part of efforts to clean up the system.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
