Registration of new companies in India increased to a record breaking high of seven years in July, highlighting the renewed interest of entrepreneurs to set up new business ventures.
A total of 16,487 companies, including 970 one person companies (OPCs), were registered under the Companies Act, 2013 during July at an authorised capital of Rs 2293.46 crore, data from the corporate affairs ministry revealed.Maharashtra had a maximum number of company registrations (2,687), followed by Uttar Pradesh (1,806) and Delhi (1,757). 'Business services'
topped the economic activity-wise classification (4,845) of the newly-registered companies.
This is the highest since January 2013 -- the maximum available historical data -- when 5,508 companies were registered, Mint reported.
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Comparatively, April saw 3,209 registrations compared to 10,383 in the same month in 2019. Of these, over 1,000 were listed as ‘business service’, over 500 as ‘community and personal service’, close to 700 as ‘manufacturing’ and over 500 as ‘trading’ business.
As many as 4,835 companies were registered in May, while the number increased 10,954 in June, the report said.
The spike in the number of companies registered in July deserves a lot of attention, the article quoted Mahesh Vyas, Managing Director at the Centre for Monitoring Indian Economy (CMIE), as saying.
"However, whether it is indicative of investor interest can only be known after investigating it,” Vyas said.
As on July 31, there are 12,32,767 active companies, including 1,80,551 companies, which were incorporated within the preceding 18 months.