New Delhi: Over 14,000 companies were incorporated in September, marking a rise of over 3% over a year ago, official data from the ministry of corporate affairs showed.
The numbers hint at steady interest in entrepreneurship, and stabilizing company registration process after a technological upgrade to the government’s digital registry.
A majority of the new companies, or about 40% of firms incorporated during September, have an authorized capital of ₹100,000, indicating that micro and small enterprises are the fastest expanding segment within the industry. The services sector is witnessing the fastest growth in terms of economic activity.
Small businesses play a significant role in India, contributing approximately one-third to economic output and making substantial contributions to exports.
In September, the highest number of new business ventures, totalling 3,828 registrations, were in the community, personal, and social services sector. Business services followed with 2,170 registrations. Besides, 2,142 trading companies set up shop.
The manufacturing sector added 1,957 businesses, while farm and allied sectors welcomed 855 newcomers. Additionally, 848 new construction companies and 649 real estate renting businesses emerged during the period.
Two central public sector entities—Kallam TransCo Ltd and Khavda IV C Power Transmission Ltd—were also established for building and maintaining power, telecom, and transmission lines,according to data from the ministry.
India’s services sector has emerged as a key contributor to economic growth in recent years. In June quarter, it was the fastest-growing segment. Gross value added in hotels, trade, transport, communication and broadcasting-related services posted 9.2% growth in Q1 FY24. Besides, financial, real estate, and professional services sector grew by 12.2%, according to data from the statistics ministry.
In September, Maharashtra led with the highest number of new companies formed, with 2,352 registrations, followed by Uttar Pradesh with 1,642 new companies, and Delhi with 1,271 registrations. Gujarat reported 1,161 new registrations during the month.
Between April and September, 79,300 new firms were established, up 2% from a year earlier.
Growth in new company formation signifies an expanding corporate sector and creation of legal entities for investments. However, starting their operations will depend on a host of economic conditions.
“Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!
Download The Mint News App to get Daily Market Updates.
Updated: 09 Oct 2023, 11:56 PM IST