An end for new Companies in India ?

A Company in India is registered under Companies Act 2013, either in the form of Private Limited, Limited, Nidhi, Producer, NBFC, One-Person or Section 8 Company. The company registration process involves certification of practicing Chartered Accountant.

Statistics:
In accordance with data released by Ministry of Corporate Affairs. In Dec 2022, more than 16000 new Companies were registered under Companies Act, 2013 whereas in Jan 2023 the number came down to around 12000 new Companies. The number drastically came down to around 1500 in Feb 2023 up to 26.02.2023.

Reasons:
The ministry of Corporate Affairs in circular number 01/2023 announced that e-filing of certain forms will not be available from 07.01.2023 to 22.01.2023. All the company registration related filing started again in the last week of Jan on V3 instead of V2 but the V3 was untested and not properly developed which led to glitches in the system.

Impact:
This not only affected the shareholders, directors and stake holders of the company but affected the economy, government revenue, Chartered Accountant (https://www.cabkgoyal.com/jaipur/), unemployment leading to a loss of Crores of Rupee to the economy. Since, the businesses were not able to start the operations hence no employement generation led to loss of livelihood for 1000's of people. Further, this also led to loss of govt revenue in form of GST and Income Tax as they were not able to start sales hence there was no govt revenue as well. Overall, it's a disaster which came in the times when the entire world is going through recession and policy makers are trying to control inflation. How can they control inflation when they are themselves restricting supply in the form of reduction of 90% new company registrations.

Solution:
The Ministry of Corporate Affairs should first inform all the stake holders that the V3 version was not tested and having glitches being the reason for such reduction so that the entire world shall come to know the real reason behind such a disaster as this brings a very negative picture of India stating that businesses are dying in India. Further, instead of avoiding calls, tickets and grievances of professionals & stakeholders, the ministry of corporate affairs shall work together with its support staff and help professionals in solving the problems by answering to their queries in a proper manner. Furthermore, the V3 version shall be made workable with immediate effect by indulging big IT teams from the nation so that Crores of Rupee, Business, stake holders and govt revenue could be saved. If this continues for a couple of more months, then this might be our own made trigger to recession in India.

Regards,
CA Bhuvnesh Goyal

109, First Floor, Fortune Heights, Subhash Marg, Ahinsa Circle, C-Scheme, Jaipur, Raj, 302001

Email help@bkgoyal.com

B K Goyal & Co LLP Chartered Accountants is a member Chartered Accountancy (CA) Firm of Institute of Chartered Accountants of India (ICAI) based in Jaipur and Delhi serving clients PAN India and abroad

The CA Firm is established by CA Bhunvesh Goyal in Jaipur. CA Bhuvnesh Goyal started his journey in 2009 and has gained the experience of more than 12 years cumulatively in the area of his expertise.

He completed his Bachelor of Commerce Degree in Honours from Delhi university in 2012.
During his journey, he has done his articleship in multiple CA Firms to gain exposure.

CA Bhuvnesh Goyal has worked as an equity advisor, tax consultant with various organisation and ventured into practice in Jaipur in the year 2017

Domain: Income Tax, GST, Company Laws, Business Incorporations, Business Consultancy, Business License's Approvals and Tax Litigations including filing of Appeals.

This release was published on openPR.