ECONOMIC ACTIVITY WISE REGISTRATION OF NEW COMPANIES OVER THE YEARS

Due to gradual changes coming in economic policies over the years, the economy of India is witnessing growth by leaps and bounds.

There are broadly three sectors in the Indian Economy namely Agriculture, Industry, and Services. The service sector has outshined the industrial as well as agriculture sector over the years in terms of the number of registered companies. Business Services consists of the highest number of registered companies in India followed by Manufacturing. Trading, Construction, and Community and Social Services are among other segments which have attracted corporates. There has been a drastic growth of more than 300% in the Agriculture and Allied Activities sector during the past decade.

TOP 10 STATES AS PER THE SHARE OF ACTIVE COMPANIES OVER THE YEARS

Maximum registration of companies in India has been at Economic capital, Mumbai, and is followed by National Capital, Delhi. Other states such as West Bengal & Tamil Nadu, etc. have witnessed a gradual rise in the number of active companies over past years.

SHARE OF PRIVATE VERSUS PUBLIC COMPANIES OVER THE YEARS

With the globalization of the market and adaptation of the Privatization concept by the Indian Government in the ’90s, Private companies occupy approximately 98% of the total Indian market in FY 2021.

TOTAL ACTIVE COMPANIES OVER THE YEARS

From 2006 to 2014, there has been a fluctuating growth in the existence of Active Companies in India. However, stability in the government post-2014 lead to a continuous increase in the number of active companies which depicts the stability of the Indian Corporate market. The increasing trend can also be seen in 2021 as the number of active companies grew by around 12% as compared to the previous year amidst the pandemic.

CATEGORIZATION OF TOTAL CLOSED COMPANIES OVER THE YEARS

Introduction of new concepts for Indian market such as Closer of sick PSU’s, booming up of Real Estate Regulation Act (RERA), identification of inactive companies and striking up of Shell companies has led to a sharp rise in the number of struck off companies in 2017-18 causing the closure of about 2.3 Lakhs companies in the year. In the year 2020-21, closed companies constitute 80% of defunct companies, 11% of amalgamated companies, and 9% of the dissolved companies.