Recently the Ministry of Corporate Affairs (MCA) Data showed that more than 1.68 Lacs of companies have been incorporated in India in FY24 with the highest in February. Maharashtra emerged as the frontrunner with an 18% share, followed closely by Uttar Pradesh at 11% and Delhi at 9%. In February, 17,264 companies were registered and the service business sector markets the majority, more than 70% of the total.
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FY24: A Year of Steady Growth
The FY24 has seen fantastic growth in company registrations, surpassing the record of last FY23. With over 168700 Companies registered so far, the cumulative paid-up share capital stands at INR 19774 Cr which is a significant increase from last fiscal year.
The massive surge of company registration includes notable registrations like state-owned entities like ONGC Green Limited, PFC Infra Finance Limited and IRCTC Payments Limited.
Small businesses drive the increase
An unexpected surge in registrations, more than half of which are small businesses with an average paid-up capital of INR 11.72 lakh, indicates the importance of small businesses in building a strong national economy. This clearly shows that the business sector has become democratized in the last 20 years because smaller players are playing a very important role in shaping the business landscape.
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Address the challenges of the informal sector
India’s informal sector, which has more than millions of these unregistered businesses, mainly contributes to the development of the economy and the employment of millions of mostly lower-skilled workers. The growth in the formal records circular conveys an aligned situation between the entities that are regulated and thus ultimately translates into transparency and accountability.
Looking Ahead
As India’s business landscape evolves, regulatory bodies are keen to ensure a conducive environment for entrepreneurship to flourish. With a continued influx of new registrations and diverse participation across sectors, the stage is set for continued economic growth and development in the coming months.
