52,000 new companies opened in India amid lockdown; more firms opened than closed

By: |
September 16, 2020 3:14 PM

India registered more new companies since the start of the lockdown till August, while the number of companies that shut down in the period were comparatively small.

msme, small business, micro enterprisePMEGP provides assistance up to Rs 25 lakh for projects to be set-up in the manufacturing sector and up to Rs 10 lakh for new enterprises in the service sector.

India registered more new companies since the start of the lockdown till August, while the number of companies that shut down in the period were comparatively small. The number of companies registered from April to August 2020 by all Registrar of Companies (ROCs) is 51,807, while only nine companies closed or were struck off during the same period, according to the data provided by MoS Finance and Corporate Affairs Anurag Singh Thakur. However, the applications for setting up of new companies were received prior to Covid period, he said in a written reply to questions in Lok Sabha.

Upon being asked if a large number of companies have been affected by the contraction of the economy due to the recent lock down in the country, the ministry said that “the information regarding contraction of economy due to the recent lock down in the country is not maintained by MCA.” It also said that information regarding unemployment is also not maintained by it.

Further, to help companies tide over the effects of the coronavirus crisis, the government has taken several steps, it said. This includes, providing incentives/ relaxation/concession during Lockdown period so as to reduce the burden of companies/LLPs during Covid-19, enabling Special Provisions for conduct of Board and General Meetings through Video conferences, helping companies file documents without additional fees, grating immunity from prosecutions proceeding, etc and allowing corporates to spend CSR funds for various activities such as healthcare, sanitation and disaster management.

The government has also been pushing for ramping up domestic manufacturing amid an anti-China environment. Prime Minister Narendra Modi on various occasions has reiterated his ‘Make in India’ vision, and has said that local production should be encouraged, the country must import less and focus more on exporting. The same was also expected to help in setting up of more companies and also boost the unorganised sector.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Offices 2.0 await employees this year; companies prefer adopting hybrid work model
2Spectrum auctions may be a no-show: Telcos expected to do minimum buying, leaving about 60% spectrum unsold
3Indian smartphones back in the game: Brands like Micromax, Lava ring loud again