comScore
Active Stocks
Fri Dec 01 2023 13:12:09
  1. Reliance Industries share price
  2. 2,388 0.49%
  1. Tata Steel share price
  2. 129.05 0.86%
  1. NTPC share price
  2. 272.95 4.46%
  1. ICICI Bank share price
  2. 944.1 0.95%
  1. Power Grid Corporation Of India share price
  2. 211.95 1.44%
Business News/ News / Over 15,300 companies set up in August
Back Back

Over 15,300 companies set up in August

Incorporation of companies indicate investment intent with initial funding going into the entities as paid up capital

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.Premium
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.

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.

As per this, LLPs can file key statutory documents including annual returns for past years with no additional fee or at concessional fee depending on how far these date back to. This relief is offered after some LLPs made representation to the government about the difficulties they have faced in filing annual returns. The window for filing these forms will remain open up to end of November.

Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

ABOUT THE AUTHOR
Gireesh Chandra Prasad
Gireesh has over 22 years of experience in business journalism covering diverse aspects of the economy, including finance, taxation, energy, aviation, corporate and bankruptcy laws, accounting and auditing.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Updated: 22 Sep 2023, 05:33 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App