January 2016

The Probe Newsletter

A little about Companies in India

        

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We present below facts about companies in India. The information is based on Probe analysis and estimates. This analysis is as of early Jan’16.

Source : Probe Data and analytics

Universe of Registered Companies

  • A total of 1,580,938 companies are registered in India till date of which 1,064,414 are currently active.
  • New company incorporations grew by 7.3% in CY2015 as against 22.6% decline in CY2014 on YoY basis.
  • The state of Maharashtra was the most entrepreneurial, given the highest number of active companies among Indian states with 223,655 companies. Small companies with paid up capital ranging between Rs 0 - 2.5 Lacs made up 64.8% of active companies in Maharashtra.

State

Number of Active

Companies

% of total

Maharashtra

223,655

21.0%

Delhi

202,781

19.1%

West Bengal

138,379

13.0%

Tamil Nadu

72,343

6.8%

Karnataka

57,974

5.4%

Telangana

55,016

5.2%

Gujarat

54,348

5.1%

Uttar Pradesh

52,473

4.9%

Rajasthan

35,420

3.3%

Other

172,025

16.2%

Total

1,064,414

100.0%

Source : Probe Data and analytics

Nationwide Spread

  • States with metro cities (A1 classification) occupy top spot in having highest number of active companies in India.
  • Bihar and Andhra Pradesh witnessed a significant growth in number of active companies. (18.7% and 15.0% CAGR between CY2012 and CY2015, respectively.)
  • At city level, Ghaziabad saw a growth in number of active companies at a CAGR of 39.0% between CY2012 and CY2015.

        

Maharashtra Cities

Number of Active

Companies

% of total

Mumbai

132,636

59.3%

Pune

28,576

12.8%

Thane

9,709

4.3%

Nagpur

8,096

3.6%

Nasik

3,983

1.8%

Aurangabad

2,786

1.2%

Kolhapur

1,578

0.7%

Ahmednagar

910

0.4%

Jalgaon

907

0.4%

Others

34,474

15.4%

Total

223,655

100.0%

Source : Probe Data and analytics

Statewide Spread

  • Maharashtra is leading the nation with highest number of incorporations per year. Among them Mumbai and Pune made up 72.1% of all incorporations in the state.
  • Thane ranked third in the state with 4.3% of total active companies.
  • Large company incorporations (paid up capital > Rs 5.0 cr) have seen a fall in number - Only 48 companies were incorporated in CY2015 as against 133 companies in CY2001 which remain active till date.

For more in-depth analysis for other states please reach out to Probe.

Source : Probe Data and analytics

Paid Up Capital

  • Small sized companies (paid up capital: Rs 0- Rs 2.5 Lacs) form the largest group of companies active in India today. The group makes up 57.4% of all active companies in India.

In segments, (paid up capital: Rs 0 – Rs 2.5 Lakhs,
Rs 2.5-Rs 5.0 cr and > than Rs 5.0 cr) Maharashtra occupies top spot, whereas West Bengal takes top spot in other segments.

Source : Probe Data and analytics

Secured Loan Charges by Year of Creation

  • As on date, there are a total of 5.8 lac Open Charges by Banks & NBFCs against companies in India. This is across nearly 2.1 lac unique companies.
  • Charges that were created between CY2012-CY2015 constituted 40.3% of all open charges by count and 70.4% in terms of value.
  • State Bank of India has the most number of Open Charges, followed by HDFC Bank.

State

Number of Charges

% of Total

Maharashtra

 141,397

24.1%

Delhi

 96,598

16.5%

Tamil Nadu

 51,043

8.7%

West Bengal

 44,208

7.5%

Gujarat

 38,933

6.6%

Telangana

 29,672

5.1%

Karnataka

 29,216

5.0%

Uttar Pradesh

 22,657

3.9%

Rajasthan

 21,170

3.6%

Other

 112,060

19.1%

Total

586,954

100.0%

Source : Probe Data and analytics

Charges by year of creation

  • Maharashtra and Delhi together account for 40.5% all outstanding secured charges in India
  • 7.6% of open charges in Maharashtra account for 54.5% of its open charges by value.

Active Company Universe

No.

No. of Active Companies

10,64,414

Unique Companies with Charges

208,798

No. of Outstanding Charges

 586,954

Source : Probe Data and analytics

Number of Secured Charges

  • Outstanding charges as on date stood at 586,954 and the value of it stood at Rs 18,750,258 cr.
  • Around 21% of the outstanding charges fall in the range of Rs 2 - 10.0 cr.
  • 4.5% of outstanding charges constituted 81.6% of open charges by value due to large charge sizes (more than Rs 100 cr).
  • Maharashtra had highest number of charges, holding 24.1% of all outstanding charges. This was in line with the state having the highest number of active companies in the country.
  • As per Probe’s estimates, the State Bank of India held 12.1% of all outstanding charges in India.

State

Director (No.)

% of Total

Maharashtra

356,751

18.0%

Delhi

237,535

12.0%

Uttar Pradesh

169,102

8.5%

West Bengal

152,122

7.7%

Tamil Nadu

143,227

7.2%

Gujarat

119,272

6.0%

Andhra Pradesh

118,904

6.0%

Karnataka

111,032

5.6%

Rajasthan

77,146

3.9%

Rest

495,270

25.0%

Total

1,980,361

100.0%

Source : Probe Data and analytics

Directorship Overview

  • There are 1,980,361 Directors in India.
  • Maharashtra accounts for the highest number of directors (18.0%) followed by Delhi (12.0%) and Uttar Pradesh (8.5%). There are 356,751 and 237,535 directors in Maharashtra and Delhi, respectively.

Source : Ministry of Corporate Affairs

New Company Incorporations

  • During the month of Nov’15 a total of 5,862 were registered in India. Among the newly registered companies 5,752 companies were private, and 110 were public companies.
  • From a sectoral viewpoint, Business Services dominated among private companies with new incorporations standing at 2,930. Among public companies Finance sector took the top spot with 33 new incorporations.
  • 13 new foreign companies registered in the country during the month.

Source : Ministry of Corporate Affairs

LLP/OPC

  • 1,362 LLP/OPCs were set up during the month of Nov’15. Of these 1,074 were Limited Liability Partnerships and 288 were One Person Companies.
  • Business Services was preferred sector making up 599 of all incorporation. Among the 599 companies 419 were set up as LLPs and 180 were set up as OPCs.

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Did you know?

Average age of active companies in the country is 10 years 1 month

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