Magazine : 
India Forms Record 1.68 Lakh Companies in FY24, Peaks in February
February saw the highest number of business registrations this financial year so far, with Maharashtra on top with an 18% share, followed by Uttar Pradesh (11%) and Delhi (9%). Business services accounted for over 70% of the 17,260 new company registrations in February.
So far, more than 1,68,700 companies have been formed in FY24 with Rs 19,774 crore as paid-up capital, compared to over 1,59,500 companies registered in FY23 with a paid-up capital of Rs 18,132.16 crore. Paid-up capital is the shares subscribed and paid for, which can be further augmented.
According to official data from the Ministry of Corporate Affairs, state-owned companies registered in February include ONGC Green Ltd., PFC Infra Finance IFSC Ltd., IRCTC Payments Ltd., Indbank Global Support Services Ltd., Jamnagar Transmission Ltd., and Bhadla III & Bikaner III Transmission Ltd.
In January, the country witnessed the registration of 14,327 companies. However, in February 2023, during a technological upgrade of the statutory filing portal, only 2,818 companies were registered. The average paid-up capital for the companies registered thus far this year stands at Rs 11.72 lakh, suggesting that the surge in new business registrations is primarily driven by small businesses, which constitute a significant segment of the industry.
India's informal sector is substantial, comprising over 60 million unincorporated non-agricultural micro, small, and medium enterprises, which collectively provide employment to over 11 million individuals. Presently, two-thirds of the 2.64 million companies registered in the country are operational. Data from the Ministry indicates that from April 1, 2023, to March 21, 2024, there were 238,301 new incorporations, including limited liability partnerships (LLPs), compared to 189,446 incorporations during the same period in the previous year.
Over a quarter of the companies registered in February are engaged in community, personal, and social services, with 16% involved in trading and 15% in manufacturing. Additionally, 937 companies were formed in agriculture and allied sectors. By the end of February, more than 26,000 companies were undergoing removal from the official registry due to their failure to file annual returns for two consecutive years, indicating their defunct status. Furthermore, 10,377 companies are currently undergoing liquidation.
During February, 43,121 professionals enrolled to serve as directors on company boards. Among them, two-thirds are male, while one-third are female. Ministry data indicates that approximately 44% of newly registered directors fall within the age bracket of 31 to 45 years.
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