Government’s Initiatives to Encourage Company Registration

As of November 30, 2024, a total of 112,962 companies have been registered in the current financial year. To encourage more company registrations, the government has implemented several initiatives. These include the establishment of the Central Registration Centre (CRC) in 2016 to streamline the incorporation process. Additionally, the government reduced the cost of starting a business by offering free registration for companies with authorized capital up to INR 15,00,000. The integration of various registrations like PAN, TAN, GST, and EPFO into the SPICe web form has further simplified the process. Amendments to the Companies Act in 2020 aim to promote ease of doing business, decriminalize offenses, and improve compliance for small companies, start-ups, and other entities. In Rajasthan, over 19,000 companies were registered from April 2021 to March 2024, with Jaipur leading at 8,299 registrations.

GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO.3328
Answered on Monday, December 16, 2024

Initiatives to Encourage Registration of Companies.

†3328. Shri Ramvir Singh Bidhuri:
Shri Chandra Prakash Joshi:

Will the Minister of Corporate Affairs be pleased to state :

(a) the number of companies registered during the current financial year;

(b) the specific policies or initiatives implemented by the Government to promote company registrations; and

(c) the district-wise details of the number of companies registered in Rajasthan during the last three years?

ANSWER

Minister of State in the Ministry of Corporate Affairs and Minister of State in the Ministry of Road Transport and Highways.

(Shri Harsh Malhotra)

(a) The total number of companies registered during current FY 2024-25 till 30.11.2024 is 112962.

(b) Initiatives taken by the Government to promote the registration of companies are:-

(i) Central Registration Centre (CRC) was established on 22.01.2016 vide notification G.S.R. 99(E) by the Ministry of Corporate Affairs to centralize the online process of incorporation in order to expedite the registration process.

(ii) The cost of starting a business has been reduced significantly through a number of initiatives of which some areas under: –

(A) All companies with authorized capital upto INR 15,00,000 are incorporated at zero fee.

(B) Integration of PAN&TAN applications with SPICE (web form for incorporation of Company) + eMOA (e-Memorandum of Association) + AOA (e-Articles of Association) and allotment of DIN integrated into SPICe., registration with Employees’ Provident Fund Organisation (EPFO), Employees’ State Insurance Act (ESIC), Professional Tax Registration Certificate (PTRC), Professional Tax Enrolment Certificate (PTEC), Shops and Establishment Act, GSTIN, has reduced cost, time and procedures.

(C) Rule 38(2) of the Companies (Incorporation) Rules 2014 provides that single SPICE+ form can be used to apply for allotment of Director Identification Number upto three Directors, Reservation of a Name, Incorporation of company and Appointment of Directors of the proposed for One Person Company, Private company, Public company and a company falling under section 8 of the Companies Act, 2013.

(D) Amendments were made in the Companies Act, 2013 in the year 2020 to facilitate Ease of Doing Business, Decriminalization of offences and to improve compliance requirements, specifically for Small Companies, One Person Companies, Start-ups and Producer Companies.

(E) Exemptions from various provisions of the Companies Act to Private Companies, Government Companies, Charitable Companies, Nidhi Companies and IFSC (GIFT city) companies have been provided.

(c) The district-wise details of the companies registered in Rajasthan during the last three years (i.e. 1.4.2021 to 31.3.2024) :-

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