Region sees 19% rise in new firms’ incorporation

Vijay C Roy

Chandigarh, May 20

The incorporation of new companies witnessed a 19 per cent increase across the region in the just concluded financial year (FY2023-24) when compared to FY2022-23 and FY2021-22.

The incorporation of a company is a statutory requirement to commence a new business. It also shows the intent of an entrepreneur to invest. However, it does not mean that the investment has been made on the ground; economic and other factors play a crucial role before the companies take a final call on the actual investment plans.

Nationally, a record 1,85,312 companies were incorporated in FY24, against 1,59,294 a year ago (FY 23), an increase of 16.33 per cent.

According to the Ministry of Corporate Affairs (MCA), Haryana saw the maximum incorporations (9,512) followed by Punjab (3,081) and Jammu & Kashmir (1,433). The data further reveals that service sector continues to account for the maximum share of new companies followed by industry and agriculture. Himachal Pradesh also witnessed significant increase in incorporations, while the Union Territory of Chandigarh witnessed a growth of 10 per cent.

According to insiders, besides economic uptick, the major reasons behind the sharp growth were the progression of smaller firms, less availability of suitable jobs and the new start-up culture.