Notwithstanding the Covid-19 pandemic, corporate activities have maintained their momentum in the country. And a testimony to the strong entrepreneurial spirit of the Indian people is the growing number of companies that are getting registered in the country.
During the peak of the second wave of the pandemic in April, a whopping 12,554 companies were registered in India, including 839 one-person companies with authorised capital of Rs 1,483.41 crore.
According the latest data released by the Ministry of Corporate Affairs (MCA), Maharashtra, one of the worst Covid-hit states in the country with high infection and death rates, reported the highest number corporate registrations in April at 2,292.
Two other states which saw rapid rise in Covid infections in April – Delhi and Uttar Pradesh — saw the highest number of company registrations after Maharashtra.
While 1,262 companies were registered in Delhi in April, as many as 1,260 companies got registered in Uttar Pradesh.
“It’s not unusual to see high number of corporate registrations in April, as it is the first month of the new financial year. But like last year, the situation in April this year has not been good for business due to the pandemic. However, the entrepreneurial spirit of Indians seems to be undeterred with several people also seeing the pandemic as an opportunity,” said a chartered accountant with independent practice, asking not to be named.
Business services topped the economic activity-wise classification (3,442) of the newly registered companies. This was followed by manufacturing, trading and construction.
Business services comprise information technology, research & development and other business activities such as law, audit, accounts and consultancy.
In April, 12,482 (out of 12,554) firms were registered as companies limited by shares with an authorised share capital of Rs 1,483.41 crore.
With the new additions, the total number of companies registered in the country as on April 30, 2021 stood at 21,63,829. Of them, 7,59,572 companies were closed.
In all, 2,274 companies were assigned dormant status as per the Companies Act, 2013; 6,906 were under liquidation; 39,572 companies were in the process of being struck-off. The Active in Progress status is now invalid and companies under this category lies under Active Status.
Taking the above into account, there were 13,55,505 active companies as on April end, including 2,19,559 companies incorporated in the last 18 months, mostly during the pandemic.