Lok Sabha Question No. 411 (UNSTARRED), answered on 2026-02-02
Subject: Registration of New Companies
Ministry: CORPORATE AFFAIRS
Asked by: Shri Nalin Soren

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 411 ANSWERED ON MONDAY, 02 ND  FEBRUARY 2026 MAGHA 13, 1947 (SAKA)

## REGISTRATION OF NEW COMPANIES

411. Shri Nalin Soren

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether the Government is aware that entrepreneurs are facing various  administrative  and  technical  difficulties  in  the  process  of registration of new companies in the State of Jharkhand; (b) if so, the details thereof; (c) whether frequent technical glitches on the MCA portal, delays in  document  verification  and  repeated  seeking  of  clarifications  by officials are leading to prolonged registration timelines and if so, the details thereof; (d) the  number  of  company  registration  applications  received  in Jharkhand  from  the  year  2020  till  date  and  the  number  of  such applications approved within the prescribed time limits; (e) whether the Government has undertaken any review or taken corrective measures to make the registration process simpler, more transparent and time-bound; (f) if so, the details thereof; and the future action-plan of the Government to promote start-ups

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND MINISTER  OF  STATE  IN  THE  MINISTRY  OF  ROAD  TRASPORT  AND

HIGHWAYS

- (g) and investment in the State?

[SHRI HARSH MALHOTRA]

- (a) to (d) : Central Registration Centre, Manesar  does  the incorporation of companies as per the provisions of Companies Act 2013  (the Act hereafter). As  per Rule 38(9)(a)  of  Companies (Incorporation) Rules, 2014, wherever, further information is necessary or document is found to be defective or incomplete, the Registrar intimates the applicant to remove the defect and resubmit the e-form within 15 days from the date of such intimation. The entire process  is  carried  out  electronically.  Further  a  system  of  raising grievances or complaints through an online ticketing mechanism and call centre is in place. These tickets are resolved keeping in mind the provisions  of  the  Act  and  Rules  made  thereunder.  The  timely  and qualitative resolution of tickets is monitored regularly and corrective steps are taken whenever required. About 2.3 lakh tickets including 0.52 lakh approval and 1.77 lakh technical issues have been raised and resolved during the last 2 financial years.

Companies registered in Jharkhand from the year 2020 till date is as under:

| FY                        |   No. of Companies registered in Jharkhand |
|---------------------------|--------------------------------------------|
| 2020-21                   |                                       2044 |
| 2021-22                   |                                       2064 |
| 2022-23                   |                                       1757 |
| 2023-24                   |                                       2144 |
| 2024-25                   |                                       2052 |
| 2025-26 (upto 24.01.2026) |                                       2403 |
| Total                     |                                      12464 |

- (e)  to  (g)  :  The  Government  from  time  to  time  has  taken  several initiatives  for  speedier  incorporation  of  companies  and  also  to provide  single  window  services  at  the  time  of  incorporation.  The significant initiatives taken in this regard, so far are as under:-
- (i) A single integrated new web form called SPICe+ along with AGILE  PRO-S  has  been  deployed.  This  form  provides  eleven services  related  to  starting  a  business  namely  (i)  Name Reservation (ii) Incorporation (iii) Permanent Account Number (PAN) (iv) Tax Deduction Account Number (TAN) (v) Director Identification  Number  (DIN)  (vi)  Employees  Provident  Fund Organisation (EPFO) Registration (vii) Employees State
- Insurance  Corporation  (ESIC)  Registration  (viii)  Goods  and Services  Tax  (GST)  number  (ix)  Bank  Account  Number  (x) Profession Tax Registration (Mumbai, Kolkata and Karnataka) (xi) Delhi Shops and Establishment Registration.
- (ii) No  fee  is  charged  for  incorporation  of  all  companies  with authorized capital up to Rs. 15 lakh or with up to 20 members where no share capital is applicable.
- (iii) The  LLP  Incorporation  Form  called  FiLLiP  has  also  been integrated  with  Central  Board  of  Direct  Taxes  (CBDT)  to provide PAN/TAN at the time of Incorporation of LLP itself.
- (iv) The Central Processing Centre (CPC) was operationalized w.e.f 16.02.2024  for  faster  and  centralised  handling  of  various electronic e-forms filed earlier with jurisdictional ROCs under the Act.
- (v) Initiatives of Ministry of Corporate Affairs to promote start-up are at Annexure.
- (vi) The  application  process  for  startup  recognition  under  the Startup India initiative has been streamlined and made entirely digital  through  an  interactive  Startup  India  portal  and  the National  Single  Window  System  (NSWS)  making  the  same accessible from any part of the country. The documentation process  for  recognition  is  simplified  with  self-certification. Recognition handbook and tutorials have also been developed and uploaded on Startup India portal for ease of navigating recognition  process.  To  promote  startup  recognition  and  to handhold entrepreneurs, workshops are held across States/UTs  with support  of State/UT  nodal  agencies  for startups and regional stakeholders such as incubators.

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## Annexure

|   S. No. | Section / Rules                                  | Subject                                              | Provisions in the Company Act, 2013 to support Start-ups                                                                                                                                                                                                                                                    |
|----------|--------------------------------------------------|------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Section 2(40)                                    | Financial Statement                                  | Requirement of cash flow statement to be part of financial statement is optional for Start- ups.                                                                                                                                                                                                            |
|        2 | Section 73(2) clause (a) to (e)                  | Acceptance of deposits                               | Start-ups were exempted from procedural compliance at the time of accepting deposits from its members (such as issuance of a circular to its members showing the financial position of company, credit rating, depositing 20% of the maturing deposits, and certification regarding default in repayments). |
|        3 | Section 92(1)                                    | Annual Return                                        | Directors of a start-up are allowed to sign annual returns of the private limited company if the Company does not have Company Secretary.                                                                                                                                                                   |
|        4 | Section 173(5)                                   | Meetings of Board                                    | Under Companies Act, 2013, Board of Directors of a company are required to meet at least once in 120 days, 4 board meetings in a year. However, Start-ups are exempted from holding quarterly board meetings and are allowed to hold two board meetings in a calendar year, i.e., once every six months.    |
|        5 | Rule 6 of Companies (Incorporatio n) Rules, 2014 | Conversion of OPCs into Public and Private Companies | The requirement that an OPC must convert itself after its paid- up capital exceeds Rs 50 lakh and its average annual turnover exceeds Rs 2 crore was omitted. Since many start-ups are One Person Company, this allows them to retain the status as an OPC.                                                 |

|   6. | Rule 8(4) of Companies (Share Capital and Debenture) Rules, 2014)     | Sweat Equity                   | In general, the issuance of sweat equity shares in a company shall not exceed 25% of the paid-up capital of the company at any time. However, in case of start- ups, this limit is upto 50% of its paid-up share capital.                                                                                                   |
|------|-----------------------------------------------------------------------|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    7 | Rule12(1) (c) of Companies (Share Capital and Debentures) Rules, 2014 | Employee Stock Options (ESOPs) | In general, ESOPs are not given to employee who are promoters or a person belonging to the promoter group and a director who either himself or through his relative or a body corporate, directly or indirectly holds more than 10% equity of the company. Start-ups are allowed to issue ESOPs to promoters and directors. |
|    8 | Rule 2 (1)(c) (xvii) Companies (Acceptance of Deposits) Rules, 2014   | Convertible Note               | Start-ups can receive an amount of Rs 25 lakh or more by way of a convertible note (convertible into equity shares or repayable within a period not exceeding ten years from the date of issue) in a single tranche, from a person, and such transactions are not considered deposit.                                       |
|    9 | Rule 3(3) of Companies (Acceptance of Deposits) Rules, 2014           | Acceptance of deposits         | Companies may ordinarily accept or renew any deposits from its members not exceeding 35% of the paid-up share capital, free reserves and securities premium account of the company. But start-ups have been permitted to accept deposits from members without any restriction on the amount.                                |

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