Lok Sabha Question No. 2430 (UNSTARRED), answered on 2018-03-09
Subject: Growth of Corporate Sector
Ministry: CORPORATE AFFAIRS
Asked by: N.K. PREMACHANDRAN

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 2430 ANSWERED ON FRIDAY, THE 9TH MARCH, 2018/ PHALGUNA 18, 1939 (SAKA)

## GROWTH OF CORPORATE SECTOR

## QUESTION

2430.  SHRI N.K. PREMACHANDRAN: be pleased to state:

Will the Minister of CORPORATE AFFAIRS

कारपोरेट कार्य मंत्री

- (a)    whether  the  Government  granted  exemptions/concessions  to  the corporate management on the ground of ease of doing business;
- (b)  if so, the details of such exemptions/concessions granted during the last three years;
- (c)  whether  the  investments  of  corporates  increased  due  to  the  policy changes  and  exemptions/concessions  given  by  the  Government  to  the corporate sector;
- (d) if so, the details of the growth and achievements of corporate sector during the said period; and
- (e) the details of corporates participated with the Government for development activities during the last three years?

## ANSWER

MINISTER OF STATE FOR LAW AND JUSTICE AND CORPORATE AFFAIRS

(SHRI P. P. CHAUDHARY)

( श्री पी. पी. चौधरी )

विवि और न्याय एिं कारपोरेट कायय मंत्रालय में राज्य मंत्री

- (a)  to  (d):-  The  Ministry  of  Corporate  Affairs  has  undertaken  a  number  of measures to improve ease of doing business in the country by reducing the number of procedures, time and cost involved in starting a business for the corporate  sector,  which  is  likely  to  lead  to  increase  in  investments  by corporate sector. Some of the major reforms undertaken in this regard are as under:
- (i) Setting up the Central Registration Centre (CRC) for processing of 'Name Availability'  and  'Incorporation'  e-forms  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 e-form 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 lacs 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.

(vii) Start-up, Small and Unlisted Companies with total assets not exceeding rupees  1  crore  have  been  notified  as  corporate  debtors  for  making application for  Fast Track Corporate Insolvency Resolution Process.

- (e) The provisions of Corporate Social Responsibility (CSR) under Section 135 of the Companies Act, 2013 and rules made thereunder have come into effect from 01.04.2014.   As per the data in the filings made by eligible companies upto 30.11.2017 in the MCA21 registry for the years 2014-15, 2015-16 and 2016-17, the expenditure incurred by such companies on CSR is given in the Table below:-

| Sl. No.   | Company Type             |   Financial Year 2014-15 (in Rs. crore) |   Financial Year 2015-16 (in Rs. crore) |   Financial Year 2016-17 (in Rs. crore) |
|-----------|--------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|
| 1.        | PSUs                     |                                 2673.85 |                                 4163.09 |                                 1325.83 |
| 2.        | Private Sector Companies |                                 6890.92 |                                 9664.77 |                                 3393.17 |
|           | Total                    |                                 9564.77 |                                13827.9  |                                 4719    |

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