The number of companies registered during the first five months of this financial year (2014-15) was 21,260, as against 43,601 companies registered during the corresponding period of the previous year. Month-wise registration of companies is indicated in the Table below:

Table

Number of Companies Registered during first five months of 2013-14 and 2014-15, month-wise:

Month	2013-14	2014-15
(1)	(2)	(3)
April	9,026	765
May	10,546	1,789
June	8,064	4,801
July	8,784	7,229
August	7,181	6,676
Total	43,601	21,260

There is no evidence or feedback suggesting that the decline is in any way attributable to “tedious compliance” entailed by the new Act. However, it is a fact that the provisions of Companies Act, 2013 have safeguards against floating “shell companies”. Further, the decline is also attributable to introduction of new e-forms and the time taken by professionals to become familiar with such forms. 

About 60% of the provisions of the Companies Act, 2013 entered into force from 01.04.2014. The Companies Act, 2013 and Rules made thereunder contain essential features of good corporate governance which are to be adopted by companies incorporated under the Companies Act, 2013. Almost all policy elements recommended by the Committee on Corporate Governance (Adi Godrej Committee) stands incorporated in the Companies Act, 2013. 

An Expert Committee has been constituted by this Ministry recently to (a) review the e-forms notified under the Companies Act, 2013 (b) to suggest changes aimed at simplifications of such forms and (c) removal of difficulties faced by stakeholders.  

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Rajya Sabha today.

Companies Act compliance reforms linked to reduced registrations; e form rollout review aims to simplify filings and address stakeholder issues. Reported company incorporations fell markedly versus the prior period; the decline is attributed to introduced safeguards against floating shell companies, the rollout of new electronic filing formats, and time taken by professionals to adapt. An Expert Committee has been constituted to review and propose simplifications to the notified e forms and to address stakeholder difficulties while the legislative framework retains enhanced corporate governance requirements.