MCA registe₹ 1.55 lakh company incorporations in FY 2020-21, an increase of 27% year-on-year

42,186 Limited Liability Partnerships got incorporated in FY 2020-21, an increase of 17% year-on-year

During the Financial Year 2020-21, Ministry of Corporate Affairs (MCA) registered more than 1.55 Lakh company incorporations as compared to 1.22 Lakh companies during FY 2019-20, an increase of about 27%. Similarly, 42,186 Limited Liability Partnerships (LLPs) got incorporated as against 36,176 last year, an increase of about 17%. The increase is significant considering the unprecedented situation faced by the country due to COVID-19 pandemic.

As part of Government of India’s drive for Ease of Doing Business, the MCA has taken many initiatives thereby saving as many procedures, time and cost for starting a business in India. The Central Registration Centre (CRC) continued to function even during the lockdown to enable stakeholders to incorporate Companies and LLPs.

The MCA launched SPICe+ form in February 2020 and thereby integrating 10 different services across 3 Central Government  Ministries/Departments (Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance) and 3 State Governments (Maharashtra, Karnataka and West Bengal), viz;

• Name Reservation
• Company Incorporation
• Director Identification Number
• EPFO Registration No.
• ESIC Registration Number
• PAN
• TAN
• Profession Tax Registration Number for the state of Maharashtra, Karnataka and West Bengal
• Bank Account number and
• GSTN Number (on Optional basis)

The MCA is continuously striving to transform regulatory environment and has taken several measures in recent past towards Ease of Doing Business like;

• Revision of Definition of Small Companies which has reduced compliance burden on about 2 lakh companies
• Zero MCA fee for company incorporation up to ₹ 15 lakh authorised capital
• Incentivisation of incorporation of One Person Companies (OPCs)
• De-criminalisation of technical & procedural violations under Companies Act

Ease of Doing Business: integrated SPICe+ and regulatory reforms drove increased company and LLP incorporations. MCA recorded significant year on year increases in company and LLP incorporations in FY 2020-21 and maintained CRC operations during lockdowns. The SPICe+ form (launched Feb 2020) integrated ten registration services-name reservation, company incorporation, DIN, EPFO, ESIC, PAN, TAN, selected state profession tax, bank account facilitation and optional GSTN-to streamline startups. The MCA also revised the Small Company definition, waived incorporation fees up to certain authorised capital, incentivised One Person Companies and de criminalised technical procedural violations to advance Ease of Doing Business.