Decline in Registration of Companies

Last updated: 10 December 2014


The number of companies registered during the first five months of this financial year (2014-15) was 21,260, as against 43,601 companies registered during the corresponding period of the previous year. Month-wise registration of companies is indicated in the Table below:

Table

Number of Companies Registered during first five months of 2013-14 and 2014-15, month-wise:

Month

2013-14

2014-15

(1)

(2)

(3)

April

9,026

765

May

10,546

1,789

June

8,064

4,801

July

8,784

7,229

August

7,181

6,676

Total

43,601

21,260

 

There is no evidence or feedback suggesting that the decline is in any way attributable to “tedious compliance” entailed by the new Act. However, it is a fact that the provisions of Companies Act, 2013 have safeguards against floating “shell companies”. Further, the decline is also attributable to introduction of new e-forms and the time taken by professionals to become familiar with such forms.

About 60% of the provisions of the Companies Act, 2013 entered into force from 01.04.2014. The Companies Act, 2013 and Rules made thereunder contain essential features of good corporate governance which are to be adopted by companies incorporated under the Companies Act, 2013. Almost all policy elements recommended by the Committee on Corporate Governance (Adi Godrej Committee) stands incorporated in the Companies Act, 2013.

An Expert Committee has been constituted by this Ministry recently to (a) review the e-forms notified under the Companies Act, 2013 (b) to suggest changes aimed at simplifications of such forms and (c) removal of difficulties faced by stakeholders.

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Rajya Sabha today.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.


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