Lok Sabha Question No. 3398 (UNSTARRED), answered on 2015-12-18
Subject: Growth of Corporate Sector
Ministry: CORPORATE AFFAIRS
Asked by: MANOJ RAJORIA

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 3398

ANSWERED ON FRIDAY, THE 18 TH  DECEMBER, 2015 [AGRAHAYANA 27, 1937 (SAKA)]

## GROWTH OF CORPORATE SECTOR

## QUESTION

3398. DR. MANOJ RAJORIA:

## Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a) the details of growth made by Indian corporate sector during the last three years and the current year;
- (b)  whether  the  Indian  corporate  sector  has  played  role  in  reducing unemployment in the country; and
- (c)  if  so,  the  details  thereof  and  steps  taken  by  the  Government  to promote growth of corporate sector?

## ANSWER

THE MINISTER OF CORPORATE AFFAIRS             (SHRI ARUN JAITLEY)

- (a) The growth of Indian corporate sector in terms of number of active companies and their paid up capital for the financial year 2012-13, 201314, 2014-15 and 2015-16 is at Annexure - I.
- (b) & (c) The Government has taken a number of steps to promote the growth of corporate sector and to improve Ease of Doing business in India. These include, inter-alia, the followings:
- I. Fourteen Government of India services across various Departments and agencies like the Department of Industrial Policy

- and Promotion, Employee's State Insurance Corporation (ESIC), Employees' Provident Fund Organisation (EPFO), Central Board of Direct  Taxes (CBDT), Reserve Bank of India and Department of Corporate Affairs have been integrated with the eBiz portal.
- II. The  application  process  for  Industrial  Licence  and  Industrial Entrepreneur's Memorandum has been made easy by simplifying the form and making the processes online 24x7.
- III. The validity period of Industrial Licence and security clearance from Ministry of Home Affairs has been increased.
- IV. Notification has been issued on 12.03.2015 by DGFT to limit the documents required for exports and imports to three.
- V. The process of obtaining environment and forest clearances has been made online.
- VI Union  Budget  announcement  (2015-16)  proposed  to  gradually reduce the rate of Corporate Tax from 30% to 25% over the next 4 years.

Ministry of Corporate Affairs has notified various amendments to the Companies Act, 2013 which make it easier to do business. These amendments  include  inter-alia  (a)  introduction  of  integrated  e-forms INC-29 for simplifying the process for incorporation (b) doing away with the payment of minimum paid up capital at the time of incorporation as well as declaration of commencement of business by the companies (c) granting of various exemptions from the provisions of the Companies Act, 2013 to Private Companies, subject to certain conditions etc.

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## ANNEXURE I

## ANNEXURE TO LOK SABHA UNSTARRED QUESTION NO 3398

## Companies limited by Shares (as on 31st March)

| Years   | Number of active companies   | Paid Up Capital   |
|---------|------------------------------|-------------------|
|         |                              | (in Rs Crore)     |
| 2012    | 800761                       | 1623635           |
| 2013    | 883611                       | 1811889           |
| 2014    | 946651                       | 2118229           |
| 2015    | 1015601                      | 2295969           |
| 2015*   | 1046527                      | 2499237           |