During the Financial Year 2020-21, Ministry of Corporate Affairs (MCA) registered more than 1.55 Lakh company incorporations as compared to 1.22 Lakh companies during FY 2019-20, an increase of about 27%. Similarly, 42,186 Limited Liability Partnerships (LLPs) got incorporated as against 36,176 last year, an increase of about 17%. The increase is significant considering the unprecedented situation faced by the country due to COVID-19 pandemic.
As part of Government of India’s drive for Ease of Doing Business, the MCA has taken many initiatives thereby saving as many procedures, time and cost for starting a business in India. The Central Registration Centre (CRC) continued to function even during the lockdown to enable stakeholders to incorporate Companies and LLPs.
The MCA launched SPICe+ form in February 2020 and thereby integrating 10 different services across 3 Central Government Ministries/Departments (Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance) and 3 State Governments (Maharashtra, Karnataka and West Bengal), viz;
- Name Reservation
- Company Incorporation
- Director Identification Number
- EPFO Registration No.
- ESIC Registration Number
- Profession Tax Registration Number for the state of Maharashtra, Karnataka and West Bengal
- Bank Account number and
- GSTN Number (on Optional basis)
The MCA is continuously striving to transform regulatory environment and has taken several measures in recent past towards Ease of Doing Business like;
- Revision of Definition of Small Companies which has reduced compliance burden on about 2 lakh companies
- Zero MCA fee for company incorporation up to Rs 15 lakh authorised capital
- Incentivisation of incorporation of One Person Companies (OPCs)
- De-criminalisation of technical & procedural violations under Companies Act