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The Probe Newsletter August 2020

Universe of Registered Companies

  • As of Jul-20, there are 12,33,767 active companies in India.
  • 3,08,312 active companies were incorporated in India between Jan-18 to Jul-20.
  • Presently, there are 52,087 active companies in Hyderabad city.
  • The chart does not include LLPs.

Company Classification

  • As of Jul-20, there are 19,396 Not for Profit Co.in India.
  • Currently, there are 1,992 Govt Co.in the country.
  • 90.0% of the companies were registered as a Private Limited Co.

Probe New Company and LLP Incorporations Index

  • The Probe New Company and LLP Incorporations (PNCLI) Index was constructed using Dec-00 as the base year.
  • In Jul-20, index value stood at 466 with 1,16,309 companies and LLPs incorporated in the last 1 year.
  • In the last 12 months 30,504 LLPs were incorporated in India.

New Company Incorporations

  • During the month of Jul-20, 16,487 companies were incorporated in India of which 16,170 were private and 317 were public.
  • New company incorporation witnessed a growth by 50.5% when compared to Jun-20.
  • 14.1% of new incorporated companies were registered under trading business.

Company Incorporations – State-wise data

  • In Uttar Pradesh 1,806 companies were incorporated in Jul-20.
  • 7.8% new companies were incorporated in the Karnataka state.
  • In Jul-20, 69 companies were incorporated with the paid up capital of more than Rs 1 cr.

LLP Incorporations State-wise data

  • During the month of Jul-20, 4,319 LLPs were incorporated.
  • 256 LLPs were incorporated in Telangana which constituted 5.9% of total LLP incorporation.
  • 133 LLPs were incorporated under the agriculture business.

Nationwide Spread

  • Presently, there are 12,33,767 active companies in India.
  • West Bengal with 1,27,076 stood at the 3rd position in terms of active companies which constituted 10.3% of the total active companies.
  • 18,826 companies in Kolkata had paid up capital between Rs 1 – 5 lac.

Statewide Spread – Bihar

  • 42.7% of the active companies in Bihar were registered in the state capital – Patna.
  • 12,458 companies in Bihar had paid up capital of upto Rs 1 lac.
  • In Muzaffarpur, 1,192 companies were registered which accounted 4.3% of total active companies in the state.

Paid Up Capital

  • 14,926 companies had paid up capital between Rs 5 – 10 cr.
  • As of Jul-20, 2,281 companies in Mumbai city had paid up capital of more than Rs 25 cr.
  • 3.2% active companies had paid up capital between Rs 2 – 5 cr.
  • Currently, 30,619 companies in Kolkata had paid up capital of upto Rs 1 lac.
  • There are 39,299 companies in India with paid up capital between Rs 2 – 5 cr.
  • 10.8% of total active companies had paid capital between Rs 5 –15 lac.

Directorship Overview

  • As of Jul-20 there are 20,58,065 active directors in India.
  • Presently, there are 58,811 active foreign directors in the country.
  • Delhi has 2,29,166 active directors which constituted 11.1% of total active directors.
The Probe Newsletter July 2020
number of companies incorporated

Universe of Registered Companies

  • Currently, there are 12,17,127 active companies in India.
  • In the last 6 months 47,922 active companies were registered in India.
  • As of June-20, there are 68,404 active companies in Odisha.
  • The chart does not include LLPs.
Company Information

Company Classification

  • Currently, there are 60,458 public companies in
  • Presently, there are 29,251 OPC (One Person Company) in the country.
  • There are 737 Guarantee and Association companies in India.
probe information

Probe New Company and LLP Incorporations Index

  • The Probe New Company and LLP Incorporations (PNCLI) Index was constructed using Dec-00 as the base year.
  • Index value stood at the 445 with 1,40,113 entity registered in the last 12 months.
  • 12,610 LLPs were incorporated in the last 6 months.
New Company Incorporations

New Company Incorporations

  • In Jun-20, 10,954 companies were registered of which 10,739 were private and 215 were public.
  • 2,360 companies in Jun-20 were registered under manufacturing business.
  • In Jun-20, 932 companies were registered under ROC Bengaluru.
Number of Company Incorporations

Company Incorporations – State-wise data

  • 742 companies were registered in the state of Telangana which accounted 6.8% of total company registration in the month.
  • In Gujarat 542 companies were incorporated in Jun-20.
  • 8,827 companies registered had paid up capital up to Rs 1 lac.
Number of LLP Incorporatios

LLP Incorporations State-wise data

  • In Jun-20, 2,273 LLP were incorporated in India.
  • In Gujarat state, 220 LLPs were incorporated which constituted 9.7% of total LLP incorporation.
  • In Jun-20 497 LLP were incorporated under the trading business.
Nationwide Spread

Nationwide Spread

  • Currently, there are 12,17,277 active companies in India.
  • As of Jun-20, there are 38,728 active companies in Rajasthan of which 20,022 incorporated in Jaipur.
  • Karnataka with 80,613 stood at the 5th place in terms of total number of active companies.
Statewide Spread

Statewide Spread – Madhya Pradesh

  • 742 companies were registered in the state of Telangana which accounted 6.8% of total company registration in the month.
  • In Gujarat 542 companies were incorporated in Jun-20.
  • 8,827 companies registered had paid up capital up to Rs 1 lac.
Paid Up Capital

Paid Up Capital

  • 22,334 companies had paid capital more than Rs 10 cr.
  • In Assam state 2,243 companies had paid up capital of up to Rs 1 lac which constituted 30.5% of total companies in the state.
  • 14.2% companies had paid up capital between Rs 1 – 5 lac.
  • Currently, 30,619 companies in Kolkata had paid up capital of upto Rs 1 lac.
  • There are 39,299 companies in India with paid up capital between Rs 2 – 5 cr.
  • 10.8% of total active companies had paid capital between Rs 5 –15 lac.
Dictatorship overview

Directorship Overview

  • Presently, in India there are 20,02,590 active directors.
  • Uttar Pradesh has 1,91,345 active directors which constituted 9.6% of total directors in India.
  • Currently, there are 57,960 active foreign directors in India.
About Probe
Relaxation Of Time & Fees For Filing Charge Forms

Introduction: MCA has via its circular dated 17 June, 2020 issued a ‘Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013’ (“Scheme”) for the purpose of condoning the delay in filing certain forms related to creation/modification of charges. This circular is an extended clarification to the Companies Fresh Start Scheme as laid out in the MCA General Circular No.12/2020 dated 30 March 2020, where the benefit of waiver of additional fees was not extended to charge forms. The benefit is now being extended to charge creation and modification forms with effect from 17 June 2020.

Existing Regulations: Companies are required to file charge creation or modification forms within the timelines specified in Section 77 of the Companies Act, 2013 (“Act”) i.e. within a total of 120 days from the date of creation or modification of the charge, after paying all the additional and advalorem fees prescribed under the Act.

Detail of Relaxations Announced:

  1. Relaxation in Timeline: This Scheme shall be applicable in respect of the filing of Form No.CHG-1 and Form No.CHG-9 by a company or a charge holder, where the date of creation/modification of charge
    • is before 01 March 2020, but the timeline for filing such form had not expired under Section 77 of the Act as on 01 March 2020 – in this case, the period from 01 March 2020 to 30 September 2020 shall not be counted for the purpose of calculating the number of days within which form is required to be filed under Section 77 of the Act i.e. the first day to be counted after 29 February 2020 shall be 01 October 2020.

Or

    •  falls on any date between 01 March 2020 to 30 September 2020 (both dates inclusive) – in this case the period beginning the date of creation/modification of charge till the 30 September 2020 shall not be counted for the purpose of calculating the number of days within which form is required to be filed under Section 77 of the Act i.e. the first day to be counted after the date of creation/modification shall be 01 October 2020.
  1. Relaxation in Fee: The relaxation in fee for both the above scenarios is as below, respectively for Clauses Ia. and Ib.:
    1.  in this case :
      1.  if the form is filed on or before 30 September 2020, the normal fees payable as on 29 February 2020 shall be applicable.
      2. if the form is filed after 30 September 2020, the fees shall be charged after adding up the number of days beginning 01 October 2020 and ending on the date of filing of form plus the time period lapsed from the date of creation of charge till 29 February 2020
    2.  in this case:
      1. if the form is filed before 30 September 2020, normal fees shall be payable
      2. if the form is filed after 30 September 2020, the fees shall be charged for the period counted from the 01 October 2020 till the date of filing the form.

Exception to the Scheme: This Scheme shall not be applicable in the following cases:

  1. where the forms have already been filed before 17 June 2020 i.e. date of the circular
  2. where the timeline for filing the forms have already expired prior to 01 March 2020
  3. where the timeline for filing the form expires at a future date
  4. for filing charge satisfaction form i.e. Form CHG-4

Points to Note:

  1. This Scheme shall be applicable from the date of issue of the MCA General Circular No.23/2020 i.e. 17 June 2020
  2. This Scheme is applicable only to charge creation forms i.e. Form CHG-1 and Form CHG-9.

Link to Circular:

http://www.mca.gov.in/Ministry/pdf/Circular23_17062020.pdf

Business Reforms and Enablers under Govt. Scheme – SELF RELIANT INDIA
Business Reforms & Enablers under Govt. Scheme – SELF RELIANT INDIA

Corporate Law measures to boost Ease of Doing Business:
 

  1. Timely Action during COVID–19 to reduce compliance burden under various provisions of the Companies Act, 2013 as well as enable companies to conduct Board Meetings, EGMs & AGMs, Rights issue by leveraging the strengths of Digital
  1. Decriminalization of Companies Act violations involving minor technical and procedural defaults (shortcomings in CSR reporting, inadequacies in board report, filing defaults, delay in holding AGM).
  1. Majority of the compoundable offenses sections to be shifted to internal adjudication mechanism (IAM) and powers of RD for compounding enhanced (58 sections to be dealt with under IAM as compared to 18 earlier).The Amendments will de-clog the criminal courts and
  1. 7 compoundable offenses altogether dropped and 5 to be dealt with under alternative (Details of such offenses not available yet)
  1. Withdrawal of more than 14,000 prosecutions under the Companies Act,
  1. Lower penalties for all defaults for Small Companies, One Person Companies, Producer Companies & Start

Enhancement of Ease of Doing business through IBC related measures:
 

  1. The minimum threshold to initiate insolvency proceedings raised to 1 crore (from Rs. 1 lakh, which largely insulates MSMEs).
  1. Special insolvency resolution framework for MSMEs under Section 240A of the Code to be notified
  1. Suspension of fresh initiation of insolvency proceedings up to one year depending upon the pandemic
  1. Empowering Central Government to exclude COVID 19 related debt from the definition of “default” under the Code for the purpose of triggering insolvency

Other Miscellaneous Key-Points:
 

  1. Direct listing of securities by Indian public companies impermissible foreign
  1. Private companies which list NCDs on stock exchanges not to be regarded as listed
  1. Power to create additional/specialized benches for NCLAT.