August 12th 2024.
In New Delhi, it has been reported that there has been a significant increase in the number of new company and LLP incorporations during the current financial year. According to the Ministry of Corporate Affairs, there has been a nearly 5% rise, with a total of 91,578 new companies and LLPs being registered compared to 87,379 in the same four-month period last year.
This growth in new businesses being set up comes after a 15% increase in new firms incorporated in 2023-24, compared to the previous year where 1.59 lakh companies were registered. A senior official attributed this continuous growth to the overall improvement in the business climate of the country.
As of March 2024, India had a total of 26,63,016 registered companies. Additionally, there were also 5,164 foreign companies registered, indicating a flow of foreign direct investment into the rapidly growing economy.
The data from the Ministry of Corporate Affairs also shows a significant increase in the number of DIR-3 KYC forms being filed so far in the current financial year. From 7.98 lakh in the same period last year, the number has jumped to 10.17 lakh.
It is mandatory for every director to file form DIR-3 KYC before September 30 of the following financial year if they have been allocated a Director Identification Number on or before the end of the financial year, and their DIN has been approved. This annual filing is also required for all existing directors with a DIN.
Moreover, the total number of forms filed with the MCA-21 portal has also increased from 23.70 lakh in the previous year to 27.60 lakh in the current financial year. The Ministry of Corporate Affairs has been focused on reducing the compliance burden and improving the ease of doing business in recent years.
Officials predict that the number of new businesses will continue to rise with the various incentive schemes launched in the Budget 2024-25 for micro, small and medium enterprises. As part of a new scheme, Finance Minister Nirmala Sitharaman announced term loans for MSMEs for purchasing machinery and equipment without the need for collateral or guarantee. The guarantee fund will provide guarantees of up to Rs 100 crore.
In addition, the Finance Minister also announced reimbursements for employers of up to Rs 3,000 per month for two years towards EPFO contributions for each additional employee. This initiative aims to incentivize the employment of 50 lakh people.
Furthermore, as part of the PM's package, the Finance Minister announced employment-linked skilling through schemes. First-timers entering the workforce in the formal sector will receive one month's wage as a direct benefit transfer of up to Rs 15,000 in three installments. This will provide much-needed support to new employees as they begin their careers.
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