The Indian government announced that 1,12,962 companies were registered in the current fiscal year (FY25) as of November 30, 2024, reflecting its continued push to promote entrepreneurship and ease of doing business in the country. The data was shared by Minister of State for Corporate Affairs Harsh Malhotra in a written reply to the Lok Sabha.
Key Drivers of Growth:
1. Central Registration Centre (CRC):Launched in 2016, the CRC has streamlined and centralized the online process of company incorporation.
By expediting approvals and reducing processing times, the CRC has significantly boosted company registrations.
2. Amendments to the Companies Act, 2013 (2020):Decriminalization of Certain Offences: Simplified compliance for businesses by removing criminal penalties for minor lapses.
Ease for Small and One-Person Companies (OPCs): Reduced compliance burdens and fees, encouraging small-scale entrepreneurship.
Support for Startups: Special provisions to foster innovation and growth for startups.
Focus on Producer Companies: Simplified procedures to support agriculture and rural entrepreneurship.
Government Vision:These reforms align with India’s vision of becoming a $5 trillion economy by empowering entrepreneurs and promoting self-reliance (Atmanirbhar Bharat).
The government continues to prioritize ease of doing business, evident in India’s improved global rankings and growing investor confidence.
Broader Impact:The surge in company registrations indicates a thriving entrepreneurial ecosystem, with businesses emerging across sectors such as technology, manufacturing, and services. The government’s reforms not only encourage first-time entrepreneurs but also foster an environment conducive to innovation and economic growth.
India’s proactive approach to simplifying compliance and reducing bureaucratic hurdles is expected to further accelerate this trend in the coming years.
