In a new record for incorporations 102,611 companies and LLPs registered by August

During the first four months of the current Financial Year, a total of 102,611 registrations of companies and limited liability partnership (LLP) firms were recorded, setting a new record in business incorporations. According to the Ministry of Corporate Affairs (MCA), there has been an 11.5% increase in firms registered between April and August compared to the corresponding period last year.

The data reveals that in the current financial year, approximately 2.44 million company forms were submitted through the Ministry’s latest corporate filing portal by September 10. This represents an increase from the 2.29 million forms filed during the previous year. Additionally, there were around 306,000 LLP forms filed on the MCA21 (Version 3 or V3) portal by September 10, which is a notable rise from the approximately 233,000 forms filed in the previous year. It’s worth noting that despite the higher number of incorporations, some company secretaries and chartered accountants have raised concerns about technical issues with the V3 portal, which was introduced for companies on January 23.

In response to the problems caused by technical glitches, the Ministry of Corporate Affairs (MCA) allowed professionals like Chartered Accountants (CAs), company secretaries, and cost accountants to merge or deactivate multiple user IDs on July 12. The reason for this change is that the new V3 portal only permits one user ID per person in order to prevent misuse, unlike the older versions, which allowed multiple IDs.