Company registrations in India have reached a new milestone, with 1,12,962 companies registered during the ongoing financial year 2024-25 (as of November 30, 2024). This surge underscores the government’s commitment to fostering a business-friendly environment. Through several initiatives, the registration process has been streamlined, costs have been reduced, and compliance requirements have been simplified, making it easier to start a business in India.
Initiatives driving growth in company registrations
Central Registration Centre (CRC)
The Ministry of Corporate Affairs established the Central Registration Centre (CRC) on January 22, 2016, under notification G.S.R. 99(E). This centralised platform has been instrumental in expediting the incorporation process, ensuring that entrepreneurs can swiftly and seamlessly register their businesses online.
Reduced costs of starting a business
The government has introduced various measures to cut down the cost of company incorporation, including:
- Zero-fee incorporation for companies with authorised capital up to ₹15,00,000.
- Integrated processes such as SPICe+ (Simplified Proforma for Incorporating Companies Electronically) combine PAN, TAN, EPFO, ESIC, GSTIN, and other registrations in a single step.
This integration saves time and eliminates the need for multiple filings, reducing both costs and administrative burdens.
Simplified compliance through SPICe+ form
Under Rule 38(2) of the Companies (Incorporation) Rules, 2014, the SPICe+ form has been a game-changer. Entrepreneurs can now use this single form to:
- Reserve a company name.
- Incorporate the business.
- Apply for Director Identification Numbers (DIN) for up to three directors.
- Appoint directors across different company types, including private, public, and Section 8 companies.
Legislative amendments supporting business growth
The Companies Act, 2013, underwent critical amendments in 2020 to promote ease of doing business. Key reforms include:
- Decriminalisation of minor offences to encourage compliance without fear of penalties.
- Tailored compliance requirements for small companies, start-ups, One Person Companies (OPCs), and producer companies.
Additionally, certain provisions of the Companies Act have been relaxed for private companies, government-owned entities, charitable organisations, and those operating in GIFT City’s International Financial Services Centre (IFSC)
The government’s multi-faceted approach, combining regulatory reforms and innovative digital tools, has created a conducive environment for entrepreneurship. With 1,12,962 companies registered so far in FY 2024-25, India continues to solidify its position as a hub for business growth.
