Co registrations duck the 2nd Covid wave
- Incorporation of companies, the most popular legal form for doing business, indicates intent to invest, though actual economic activity may be influenced by a lot of factors.s
The second wave of the pandemic had little effect on entrepreneurship, unlike the first wave which had a huge impact, official data on the incorporation of firms showed.
In April, 12,554 companies were set up in the country, compared with the 3,209 set up in the same month a year ago when a national lockdown was in place to contain Covid-19.
In March 2021, the number of firms set up had risen to 17,324 when compared with the 5,788 set up in March last year. The March 2021 figure is the highest since January 2013 and is despite the mobility curbs imposed in various parts of India.
In the first two months of this calendar year, too, the number of firms incorporated were in double digits, at 10,924 and 14,094, data from the corporate affairs ministry showed.
Incorporation of companies, the most popular legal form for doing business, indicates intent to invest, though actual economic activity may be influenced by a lot of factors.
Large state economies account for the bulk of firms registered every month. Maharashtra led with the formation of close to 2,300 firms. The state, along with Delhi, Uttar Pradesh, Karnataka, Tamil Nadu, and Telangana, accounted for 60% of the firms incorporated in April.
Among sectors, services accounted for 63% of all companies set up in April.
Companies set up in the agriculture and allied services segment in April accounted for 7%. This segment accounts for about 4% of the overall 1.35 million active companies. The aggregate authorized capital also came off from the peak seen in March of ₹4,145 crore to ₹1,483 crore in April, data showed.