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Gujarat got 34,000 new firms in 5 years: Ministry data

🔴 According to the data, Maharashtra attracted almost thrice the number -- 1,07,825 firms -- during the same period, which is the highest among all the states.

Written by Avinash Nair | Ahmedabad |
December 10, 2021 1:04:23 am
Gujarat, Gujarat news, Gujarat government, Maharashtra, Maharashtra news, Delhi, Uttar Pradesh, Karnataka, Tamil Nadu, Telangana and Madhya Pradesh, Rao Inderjit Singh, Union ministry, Indian Express, India news, current affairs, Indian Express News Service, Express News Service, Express News, Indian Express India NewsUnion Minister of State for Corporate Affairs Rao Inderjit Singh (FIle)

In the past five years, Gujarat got more than 34,700 new companies, which was the eighth highest compared to other states, while 16,078 companies closed down in the same period, as per data of registrations and closures shared by the Ministry of Corporate Affairs in the Lok Sabha during the ongoing winter session.

The states that got more new companies in the same period between April 1, 2016, to November 2021, than Gujarat include Maharashtra, Delhi, Uttar Pradesh, Karnataka, Tamil Nadu, Telangana and Madhya Pradesh.

According to the data shared by Union Minister of State for Corporate Affairs Rao Inderjit Singh in a written reply in the Lok Sabha on November 29, Maharashtra attracted almost thrice the number — 1,07,825 firms — during the same period, which is the highest among all the states. During this period, 81,412 firms in Maharashtra closed down.

The data of registrations of new companies with MCA show that Delhi saw registration of 73,480 new companies, while Uttar Pradesh with 71,223 companies, followed by Karnataka (61,134 companies), Tamil Nadu (47,339 companies), Telangana (47,176 companies) and Madhya Pradesh (37,771 companies), all managed to attract more new companies than Gujarat.

In the first eight months of this financial year, only 5,727 new firms were registered in Gujarat. Six other states had better numbers with Maharashtra seeing the highest number of 20,085 new firms during this eight-month period of 2021-’22.

The data from the Ministry of Corporate Affairs — is primarily concerned with administration of the Companies Act 2013, the Companies Act 1956, the Limited Liability Partnership Act, 2008, and other allied acts — reflects the flow of new entities to various states in the country between April 2016 and November 2021. “Most companies have to get registered with MCA. However, there are proprietary firms and certain partnership firms that do not get registered under MCA. But for all limited companies private and limited liability firms, one needs to register under MCA,” said a senior government official.

The MCA’s closure data of the states shows most firms having closed down in 2017-’18 which is the post-demonetisation period. As per the Lok Sabha data, Gujarat saw 1,585 companies close down this fiscal. Though the number of closures were fewer in Uttar Pradesh (15,575) compared to Gujarat, the other states – including Maharashtra (81,412 companies), Delhi (55,753), Tamil Nadu (38,128), Telangana (37,301), Karnataka (29,095), West Bengal (33,938) and Haryana (33,161) – were significantly higher.

Talking about the closures, the reply states that at places where “the Registrar has reasonable cause to believe that companies that are not carrying on any business or operation for a period of two immediately preceding financial years , shall after following due process of law, struck off those companies from the Registrar of Companies.”

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