Government Initiatives Driving Company Registrations in FY 2024-25
The Ministry of Corporate Affairs reported that 1,12,962 companies have been registered in FY 2024-25 as of November 30, 2024. This significant surge stems from various government initiatives that simplify the incorporation process and encourage entrepreneurship across India.
Key Initiatives Promoting Company Registrations
1. Central Registration Centre (CRC)
The Central Registration Centre (CRC), established on January 22, 2016, plays a crucial role in expediting company registrations. By centralizing the online incorporation process, the CRC ensures faster approvals and improved efficiency.
2. Reduction in Cost of Starting a Business
The government has made significant efforts to lower costs for new businesses.
- Zero Fee for Small Companies: Companies with authorized capital up to INR 15,00,000 can now incorporate at zero cost, encouraging small businesses to formalize their operations.
- Integration of Multiple Services: The government has combined multiple registrations—such as PAN, TAN, SPICe+, eMOA, AOA, and DIN—into a single streamlined process. This integration has reduced costs, saved time, and simplified procedures.
- Additional Services: New companies can also register with EPFO, ESIC, GSTIN, and Shops and Establishment Acts during incorporation.
These measures have removed financial and procedural hurdles, making it easier to start a business.
3. SPICe+ Form: A Single-Window Solution
Rule 38(2) of the Companies (Incorporation) Rules, 2014 introduced the SPICe+ form, which simplifies company incorporation by consolidating multiple steps into one.
With SPICe+, businesses can:
- Apply for up to three Director Identification Numbers (DIN).
- Reserve a company name.
- Incorporate various company types, including One Person Companies, Private Companies, and Section 8 Companies.
- Appoint Directors seamlessly during incorporation.
This single-window solution reduces administrative delays and ensures a smoother process.
4. Amendments to the Companies Act, 2013
The 2020 amendments to the Companies Act introduced several reforms to enhance the ease of doing business. Key changes include:
- Simplified compliance requirements.
- Decriminalization of minor offenses.
- Support for Small Companies, Start-ups, One Person Companies, and Producer Companies.
These changes have improved the business environment, encouraging more entrepreneurs to register their companies.
5. Exemptions for Specific Company Types
To further streamline processes, the government has granted exemptions to specific company types from certain provisions of the Companies Act. These include:
- Private Companies
- Government Companies
- Charitable Companies
- Nidhi Companies
- IFSC (GIFT City) Companies
These exemptions reduce regulatory burdens and make company registration more attractive for targeted business categories.
Conclusion
The government’s initiatives have successfully transformed the company registration process into a more accessible, cost-effective, and efficient system. By simplifying procedures and reducing compliance requirements, these reforms have led to a steady rise in company registrations across India.
