Lok Sabha Question No. 4728 (UNSTARRED), answered on 2018-03-23
Subject: Growth of Corporate Sector
Ministry: CORPORATE AFFAIRS
Asked by: NISHIKANT  DUBEY, RAJESH PANDEY

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 4728 ANSWERED ON FRIDAY, THE 23rd MARCH 2018 [CHAITRA 2,1940 (SAKA)]

## GROWTH OF CORPORATE SECTOR QUESTION

4728. SHRI NISHIKANT DUBEY: SHRI RAJESH PANDEY:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) the details of growth made by the Indian Corporate Sector during the last three years;
- (b) whether the Government has been successful in achieving Ease of Doing Business in the corporate sector and if so, the details thereof;
- (c) the details of employment creation in the country in the last three years by the Indian corporate sector; and
- (d) the steps taken by the Government for the growth of corporate sector in the country?

## ANSWER

THE MINISTER OF STATE FOR LAW AND JUSTICE    (SHRI P. P. CHAUDHARY) AND CORPORATE AFFAIRS

(a):  The  growth  of  Indian  Corporate  Sector  in  terms  of  number  of  active companies for the financial year 2014-15, 2015-16 and 2016-17 is given below:

|   As on 31st March | Number    |
|--------------------|-----------|
|               2015 | 10,22,011 |
|               2016 | 10,88,780 |
|               2017 | 11,69,303 |

(b): Yes, the 'Doing Business' Report(DBR) of the World Bank ranks countries on the basis of Distance to Frontier, an absolute score that measures the gap between India and the global best practice on the 10 specified indicators. India's absolute score improved from 53.93 in DBR 2016 to 55.27 in DBR 2017 and further to 60.76 in DBR 2018, improving its ranking from 142 in 2016 to 100 in 2018. This is the first time India has improved its absolute score in three consecutive years. Additionally, India's Distance to Frontier (DTF) score improved on all the 10 indicators as compared from 2017 to 2018, showing that India is increasingly progressing towards best practices.

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(c): The impact on employment due to Indian Corporate Sector has not been assessed.

(d):  The  Ministry  of  Corporate  Affairs  has  taken  a  number  of  measures  to promote growth of corporate sector and to improve the ease of doing business in the country. These include, inter alia, (i) setting up the Central Registration Centre  (CRC)  for  processing  of  'Name  Availability'  and  'Incorporation'  eforms in a speedy, time-bound and transparent manner, (ii) a new integrated incorporation eform Simplified Proforma for Incorporating Company Electronically (SPICe) has been introduced for delivering 5 services in one eform viz. name availability, allotment of DIN, incorporation of a company and allotment  of  Permanent  Account  Number  (PAN)  and  Tax  Deduction  and Collection  Account  Number  (TAN)  to  a  company,  (iii)  a  new  web-service facility  named  Reserve  Unique  Name  (RUN)  has  been  launched  from 26.01.2018 to simplify the process of reserving a name of the company, (iv) incorporation of companies with authorized capital of less than or equal to Rs. 10 lakh and companies limited by guarantee having upto 20 members do not require payment of fees for filing SPICe, eMoA (Memorandum of Association) and eAoA (Articles of Association), (v) Common seal for companies has been made optional, (vi) the requirement for minimum paid-up capital and obtaining Certificate of Commencement of Business has been dispensed with; and (vii) Start-up, Small and Unlisted Companies with total assets not exceeding Rs. 1 crore have been notified as corporate debtors for making application for Fast Track Corporate Insolvency Resolution Process.

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