The gradual opening up of the economy is paving way for improved business activities and sentiments, driving registrations of new companies, which have reached back to the pre-COVID levels. A total of 10,954 companies were registered in June 2020 compared to 9,619 in June 2019. This was an increase of 126.5 per cent over the previous month in which 4,835 new companies were incorporated.
The lockdown imposed by the government to contain the spread of the coronavirus had reduced new registrations to 5,788 in March and 3,209 in April. In fact, registrations in April hit its second lowest after a record low of 765 in April 2014. Altogether, 24,786 new companies have been incorporated in the past four months.
Data sourced from Ministry of Corporate Affairs (MCA) showed that on an average 10,000 companies were registered each month in 2019 compared to nearly 9,800 in 2018. Interestingly, registrations in June 2020 are by far the best in this month over the past six years.
Companies were registered with collective authorised capital of Rs 1,318.9 crore. Of them, 10,903 companies were registered as companies limited by shares with authorised capital of Rs 1318.7 crore.
A sectoral break-up of companies registered during June 2020 revealed that business services had the predominant share of 31 per cent followed by manufacturing with 2,360 companies, trading (1,499), community, personal & social services (1,411) and construction with 6 per cent share.
Maharashtra tops the chart with 1,699 companies accounting for a share of 15.51 per cent and Delhi taking the second spot with a share of 11.4 per cent. Uttar Pradesh stood at the third place, which saw 11 per cent or 1,200 new companies being registered during the month.