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New firm registrations fall 20% in Nov; sharpest drop since May

Maharashtra led the pack with 19.32 per cent share followed by Uttar Pradesh and Delhi with 10.2 per cent and 9.7 per cent contribution, respectively

twitter-logoNiti Kiran | December 17, 2020 | Updated 00:37 IST
New firm registrations fall 20% in Nov; sharpest drop since May
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The new company incorporation in November hit the sharpest decline since May after it grew consistently for the three months between May and July. A total of 13,453 companies were registered during the month, witnessing a double-digit decline of 19.5 per cent, over the previous month, although it saw a jump of nearly 27 per cent, from 10,607 companies registered in November 2019.  

After the lockdown measures were implemented, new registrations fell massively by 45 per cent, month-on-month, each in March and April. It hit the lowest at 3,209 in April. In the following three months, it has grown at an average rate of 76 per cent. However, August saw a minor decline of 0.6 per cent accompanied by a sub-2 per cent growth in September and October.       

Data collated from Ministry of Corporate Affairs (MCA) showed that a total of 13,453 new companies were incorporated with a collective authorised capital of Rs 1,681.03 crore, during the month. Of them, 13,378 companies were registered as companies limited by shares with an authorised capital of Rs 1,680.98 crore.

Continuing with the earlier trend, the predominant share of companies was in business services (3,867) followed by manufacturing with 2,790 companies, community, personal & social services with 1,649 companies, trading (1,622) and agriculture and allied activities, 1,062 companies.

Meanwhile, Maharashtra led the pack again with 19.32 per cent share followed by Uttar Pradesh and Delhi with 10.2 per cent and 9.7 per cent contribution, respectively.

As of November 30, a total of 20,93,777 companies have been incorporated in the country. Of them, 7,53,558 companies were closed, 2,239 companies were assigned a dormant status, around 6,844 were under liquidation and 39,253 companies were in the process of being struck off. Taking the above into account, there were 12,91,883 active companies.

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