India: 1.96 Lakh Cos, LLPs Incorporated in 2023

New Delhi, Dec 28 (PTI) More than 1.96 lakh companies and Limited Liability Partnerships (LLPs) were incorporated in the country this year till the end of November, which is higher than 1.88 lakh such entities registered in the year-ago period, the corporate affairs ministry said on Thursday.

Providing a review of the key developments during 2023, the ministry said in the framework of corporate governance, it continues to focus on bolstering 'ease of compliance' and 'ease of doing business'.

"During calendar year 2023, 1,96,028 companies and LLPs got incorporated as on 30th November 2023 as against 1,88,364 companies and LLPs for the corresponding period during calendar year 2022," the ministry said in a release.

Among others, in 2023, the Central Processing for Accelerated Corporate Exit (C-PACE) became operational in May.

Amendments were also made to the Competition Act as well as to various rules under the Companies Act.

"In an important development, the amendment to the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 empowers Regional Directors (RDs) to expedite merger approvals," the release said.

Also, there were amendments to key accounting standards with the Companies (Indian Accounting Standards) Amendment Rules, 2023, enhancing disclosure requirements.

"The adoption of Straight Through Process (STP) for additional e-forms eliminates manual intervention, expediting electronic approvals and streamlining operations... the Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2023, introduce mandatory dematerialisation of shares for larger private companies, aligning regulations with contemporary market trends," as per the release.

These achievements, the ministry said, underscore its commitment to fostering a dynamic, efficient, and responsive corporate ecosystem.