The number of new companies formed is also expected to remain high in August

Mumbai, Ta. 25 August 2020, Tuesday

Despite the effects of the coronavirus, the country is showing signs of improving its business climate. It is claimed that the number of registrations of new companies is increasing in August after July.

The formation of a new company in July hit a seven-year high. According to figures released by the Ministry of Corporate Affairs, 12 new companies were formed in July. The figure is at a seven-year high. Earlier, 204 companies were formed in January 2016.

Compared to July last year, the figure for July this year is fifty per cent higher. The number is also on the rise in August, ministry sources said. Not only new companies but also Limited Liability Partnership (LLP) registration is on the rise. However the exact August figure will be made available at the end of the month.

Maharashtra has the largest number of companies in the country, followed by Uttar Pradesh.

The data shows that the business mood is improving after a period of lockdown in the country to control the coronavirus, government sources said. The number of companies registered in June was 108. This figure has doubled compared to May.

The April-May low is responsible for the increase in enrollment in June-July. Currently the company can be registered in a day if every document is ready in the country, which is a global benchmark.

If India is to grow its economy to પાંચ 5 trillion, the number of company registrations needs to double, government sources said.