India added almost double the number of new businesses in the last three months compared to same time last year, while India was mostly under lockdown

India added almost double the number of new businesses in the last three months compared to same time last year, while India was mostly under lockdown
Rao Inderjit Singh, MoS ministry of corporate affairsBCCL
  • About 18,968 companies were incorporated in India between April to June last year.
  • There are a total of 21,87,026 registered companies in India till June 30, 2021.
  • 21,349 companies spent ₹21,231 crore on CSR in FY20 for the welfare of workers and local people.

India has added 36,191 new companies between April to June this year. This represents an increase of 17,223 new companies, compared to 18,968 companies that were incorporated between April to June last year.

It should be noted that in the months of April and May last year, India was going through a nation wide lockdown due to the COVID-19 pandemic.
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The data was shared by the Minister of State for the Ministry of Corporate Affairs, Rao Inderjit Singh, in a written reply to a question in Lok Sabha. The minister’s reply was to a query on whether the second wave of the coronavirus pandemic has adversely impacted the economic conditions of the companies in the country.
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As per the data shared with the ministry, there are a total of 21,87,026 registered companies in India till June 30, 2021. Of these, 13,76,366 companies were active and remaining 8,10,660 were not active due to several reasons like liquidations, mergers, conversion to limited liability partnership (LLP) or were striked off.

As many as 14,674 companies were closed down in the financial year 2021, between April 2020 to March 2021. Close to 70,972 companies were shuttered in FY20, while 1,43,223 companies were closed in FY19.

"There is no verifiable information which says that the closure of the company is due to lack of business acumen," the minister said in another written reply. He was responding to a query on whether want of business acumen is also a reason for closure of companies.
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Singh, in another response, noted that 80,270 independent directors were appointed by companies in the last three financial years between FY19 to FY21.

He also highlighted that the 21,349 companies spent ₹21,231 crore on corporate social responsibility (CSR) in FY20 for the welfare of workers and local people in the country. The Section 135 of the Companies Act of 2013 mandates every company having net worth of ₹500 crore or more, or a turnover of ₹1,000 crore or more have to undertake CSR activities.

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