Incorporation of new companies sees significant growth in North

Tribune News Service

Vijay C Roy

Chandigarh, October 4

Showing signs of revival in business sentiment, the incorporation of new companies across the northern states witnessed a significant growth in April-August period of the current fiscal (FY23) as compared to the corresponding period of FY22 and FY21.

Data from the Ministry of Corporate Affairs (MCA) showed that Haryana registered 3,650 companies during April-August of FY23 as compared to 3,091 in FY22 and 2,442 in FY21 during the corresponding period.

Similarly, Punjab witnessed the incorporation of 1,201 new companies in the same period of FY23 as compared to 691 during the corresponding period of FY21. In FY22, 967 companies were registered in Punjab.

In Jammu & Kashmir, 480 companies were incorporated in FY 23 (April-August) as compared to 426 in the same period of FY22. In FY21, 242 companies were incorporated. Similarly, Himachal Pradesh and Chandigarh too witnessed a significant increase in the incorporation of new companies.

The increase in incorporation of new companies is a sign of inherent strength in the economy and better facilitation. “The registration of new companies shows renewed investor interest and plans by entrepreneurs to set up new business ventures in the region,” said a senior official in the Ministry of Corporate Affairs.

To commence a new business, the incorporation of a company is important, as it shows the intent of an entrepreneur to invest. However, it does not mean that the investment has been made on the ground, rather depends on the certain economic condition before the companies take a final call on the actual investment plans.

The increase in incorporation of new companies also indicates that due to less availability of suitable jobs, more and more people are opening their own businesses and are in turn becoming job creators.

Sector-wise, the maximum number of companies were incorporated in the business services, followed by manufacturing, community, personal & social services and agriculture & allied activities.

Also, according to insiders, the reason behind the sharp growth was the progression of smaller firms and LLPs towards forming companies as growth picked up along with improved facilitation through digital services.