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A Study on Growth of Indian Corporate Sectors - A Paradigm Shift to

Entrepreneurial Development in India

Article in SMS Journal of Enterpreneurship & Innovation · March 2018

DOI: 10.21844/smsjei.v5i1.15142

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 A Study on Growth of Indian Corporate Sectors - A Paradigm Shift to
Entrepreneurial Development in India
SMS Journal of Entrepreneurship & Innovation
4 (2) 1-12
[Link]
P. Govindan*

Abstract

This study mainly investigates that total number of companies registered and active companies in top ten
states and Union territories wise, share capital Range wise, economic activity wise, one person
company(OPCs) wise and foreign companies wise as on 30.06.2018 in India. The research study is
explorative in nature and will be based on in-depth analysis of data and statistics, composed in the various
secondary data. This research used descriptive statistical tools such as percentage analysis, tables, and charts
are used for analysis and interpretation of data.

The results of research study indicated that total number of companies registered and active companies 17,
79,761 and 11, 89,826. Out of them 71,506 were public, 11,10,371 were private including 18,153 one person
companies. Maximum of registered and active companies are in Maharashtra, Delhi and west Bengal.
Highest of active companies are in services sectors (65%) and industry sectors (31%). Total numbers of one
person companies (OPC) 18,153 were recorded in India with share capital of Rs.461.06 Crores. In case of
foreign companies totally registered 4,678 out of this 3,379 out of which 3,379 companies are functioning as
on [Link] study finally suggested that government of India, State/ Union governments, policy
makers and other regulators agencies should improve existing and create new infrastructure in easy doing
business indicators for Indian and foreign investors on regulation for starting a business like land
acquisition, dealing with various laws permits, getting electricity and manpower, registering property,
getting loans, subsidies, interest free loans and advance, protecting investors investments, improving
various direct and indirect tax management system.

Key words: MCA21, Company, Investments, Corporate Governance, OPC

Introduction famous is the East India Company , Which was

charted by Queen Elisabeth in 1600. The history
The history of corporate laws is ages old in India & and development of company Act in India is
dates back to the time of Cholas&Patliputra who closely related with that of England. During the
were patrons of trade. The concept of corporate British colonial period, Indian companies were
form was brought in for first time in United controlled by British rules and regulations.
Kingdom wherein by the body corporate could be Company law in India, as indicated earlier, is the
brought into existence either by a royal charters or cherished child of English parents born and
by a special act of parliaments. The earliest type of brought up in England.
associations indentified as “companies” were they
doing the international trade in India the most Many countries company laws have been shaped
* Assistant Professor in Commerce, Department of Commerce, [Link] College of Arts and science (Autonomous) ,Namakkal,
Tiruchengode , Tamil Nadu Email: [Link]@[Link]

Vol. V, No. 1; December-2018

A Study on Growth of Indian Corporate Sectors - A Paradigm Shift to Entrepreneurial Development in India 41

and brought up from English companies Laws. In benefactor to corporate global earnings.
India company law made a first appearance in 1850
when a law for registration of joint stock Dr. J JIrani Expert Committee for Companies
companies was passed and implemented by British Act 2013
government in India. Thereafter consolidation
attempt was executed in India in the form of MCA21 is an innovative technology oriented e-
company law 1882 for incorporate the various governance project initiated by government of
amendments in the British company law legislation India for various online services for company
in the early 1860 in order to applicable to the Indian registration to winding up. It makes that India
context. Company law 1882 has five different sets became globally competitive for entrepreneurship
of amendments were enacted until first decade of development.
21 st century. Then, British companies' laws
consolidation acts 1908, a new legislation was The reconsideration of company law 1956 was
passed in India in the form of company law, 1913. continued on the basis of board based consultative
process of recommendations of company law
Companies Act 1956 expert committee was formed 02-12-2004 under
the chairmanship of Dr.J.J. Irani, director, Tata
The company law 1956, had been passed with the Sons. The committee submitted its report to the
main objectives of strengthen and modify the laws government of India on 31-05-2005. The new
relating to companies and certain other Indian company law beginning in the birth towards
associations registered in India. The company law modernizing India's company act and bring in the
1956 was implemented in India on 01-04-1956. support of global standards. This report was laying
This law has been in force in past 55 years and foundation for new company law 2013 in India.
amended were made in 25 times. The registered Company law bill 2012 was passed in the
numbers of companies were increased from 30,000 LokSabha on 18-12-2012 and the RajyaSabha
in 1956 to nearly 8, 00,000 companies functioning passed on 08-08-2013 would be remembered as
as the date. In the past three decades in various historic day in the history of corporate India and
innovations and changes were taken in the national brings to modernized company law to India. The
and international level in economic, foreign Company law bill, 2012 was assented, to by the
investments, labour laws and regulatory president of India on 29.08.2013 and notified in the
environments. India has also getting dividend for Gazette of India on 30.08.2013. It finally became
growth of Indian corporate sectors during that the companies Act 2013.
period in form of financial incentives and
infrastructural development. Financial Review of literature
liberalization and promotion of domestic private,
public, governments and foreign investment in Cs. Mala KumariUpadhyay(2017),indicated that
infrastructure, a new need has at the present begin the company law 2013 included in various new
the change in the regulatory formation for innovative sections for introduced to growth of
corporate sector was also reflect on necessary to business reconstructions process for Indian
concentrate on issues in the regulatory harmony, companies with other foreign companies.
recognition of good corporate practices and
technological innovations to be implemented. Stephanie(2013), found that the implementation
India has been identified as an important of MCA's E-governance and XBRL
implementation achieved immediate benefits.

Vol. V, No. 1; December-2018

42 [ ISSN 2349-7920 ] SMS Journal of Entrepreneurship & Innovation

Rajeshwari M. Shettar (2017),concluded that, the total numbers of registered companies,

make in India force a radical revolution in services States/UTs-wise and sectors wise and trend of
sectors, manufacturing sectors and its allied registration of Active Companies as on
sectors. 30.06.2018. In these surroundings the current
research diverges from the early researches in
RenukaMahadevan (2003),found that India has numerous ways and contributes the existing
effectively utilized the various corporate sectors literature.
and economic reforms.
Significance and importance of the study
GyanendraKumerSahu (2017),examined earlier
corporate law reform in India. This it found that The Indian corporate sectors have been facing
corporate law modification progression was worldwide competition and economic reforms
instigated in India to make the lawful structure force into various changes in Indian corporate
well-suited with universal standards. sector. It is needed for major reforms in Indian
corporate sector for growth of their economies. In
GupinderAssi, John Welge and IainSharp the recent decadesIndia is fast growing economies
(2013),foundthe new Indian companies' law 2013 in developing countries of the world, for creating
is a constructive movement in the direction of an environment conducive to many small
modernizing India's company law and bring into businessesand bring into financial liberalization.
line it to universal standards and introduced Companies, moved India's business environment
safeguard of investors. towards next stage the companies act is a radical
experiment with corporate purpose enacted new
BiswatoshSaha (2000),examined pragmatic company law 2013 is a milestone for passing on
substantiation of the extensively held existing valuable investment opportunities are bring into
practice of firm performance in the Indian area. It India as an investment destination,choice of
found that global diversification had an optimistic location, pricing, employment and all other
relation with a firm's market appraisal and firm's important policies are centrally decided.
ownership composition.
India initiative is getting attention of global
Research Gap investors its progress and success will depend upon
ease of doing business in India. Corporate
This study has examined many research papers, governance issueon implementation of GST
research studies, research journals, thesis, books, reduced the cascading effect of taxes. Corporate
articles, News papers and seminars edited governance reform and e-governance initiatives
publications relating Indian corporate sectors in aim to help investors by adding regulatory and
India. It helps to identifying the research issues and judicial to keep on incorporating various
the research gaps of the present study. There is governance aspects arising in terms of challenges
scarcely little research study carried in India, it due to several changes taking place in corporate
shows the trends growth of companies in India [Link] this background this study mainly focus
especially after major reforms in Indian economy on total number of companies registered in
such as impacts of Companies Act 2013, State/UT-wise, economic activity-number wise
demonetizations and implementations of GST Act and authorized capital of active companies,
2017 in India. This present study mainly examine sectors-wise registered one person company and

Vol. V, No. 1; December-2018

A Study on Growth of Indian Corporate Sectors - A Paradigm Shift to Entrepreneurial Development in India 43

investigates the foreign companies as on Data collection

30.06.2018.
This study has been carried out descriptive and
Objectives of the study exploratory nature with the help of the secondary
data. The sources include the ministry of corporate
1. To examine the total number of private, public, affairs reports, RBI monthly bulletins and the RBI
One Person Companies (OPCs) and foreign annual reports, department of economic affairs,
companies registered and active companies in SEBI, DIPP, various central and states ministry
India as on 30.06.2018 reports and economic survey of India. The other
2. To analysis the economic activity wise total sources include various books, working notes,
number of private, public and One Person research articles and journals, research magazines,
Companies (OPCs) in India as on 30.06.2018. newspapers and websites of state, central
3. To assesses the authorized share capital wise governments and related organizations.
total number of private, public and One Person
Companies (OPCs) in India as on 30.06.2018. Statistical Techniques used

Research methodology This study has been carried out descriptive and
exploratory nature with the help of the secondary
The present research study methodology divided data. In order explain the outcome of the study
into methods data collection and tools used for results and interpretations of data by using tables,
analysis and interpretation of data. The first charts, graphs and descriptive statistical tools of
segment of deals with the various data collected for averages and percentages. It covers period of study
the current research study and second segment since with incorporation of Indian Companies Act
involves that the various statistical techniques used 2013 up to 30.06.2018.
for the purpose of analyzing and interpretation of
data.

Vol. V, No. 1; December-2018

44 [ ISSN 2349-7920 ] SMS Journal of Entrepreneurship & Innovation

Results and discussions

Total Number of Registered and active companies in India as on 30.06.2018

1 Companies registered as on 30.06.2018 17,79,761

2 Number of closed companies 5,43,467
I Number of Companies liquidated/Dissolved 10,532
II Number of companies Defunct/Struck-off(section 248 of CA,2013)4,97,742
III Number of companies amalgamated /merged 21,367
IV Number of companies converted to LLP 9,302
V Number of companies converted LLP and dissolved 4,794
3 Number of companies lying dormant u/s 455 of Companies Act 2013 1,390
4 Number of companies under liquidation 6,117
5 Number of companies which are process of section 248 of CA, 2013 38,858
6 Number of companies Lying AIPG(Active in Progress) 103
Number of active companies 11,89,826
Of which
Companies limited by shares 11,81,877
Company limited by Guarantees 7,518
Unlimited companies 431
Source: MCA, MIB, June 2018.

The above table 1 clearly detailed that the total 11,81,877, companies limited by guarantees were
number of companies registered as on 30.06.2018 in 7,518 and unlimited companies were in 431.
in India shows that 17, 79,761. Out of this 5,43,467
companies were closed. Total numbers of Top Ten States/UTs wise Total Number of
companies liquidated and dissolved were in Registered and active companies in India as on
10,532. Defunct/Struck –off (section 248 of 30.06.2018
Companies Act 2013) were in India as on 4,97,742.
Out of these totally 21,367 companies were The below table 2 and chart 1 shows that the top ten
amalgamated and merged. Number of companies states/UTs wise total number of companies
converted to Limited Liability Partnerships (LLPs) registered and active companies in India as on
and dissolved 4,794. Total number of companies 30.60.2018. This is evident from that above table
lying dormant u/s 455 of companies 2013 were in shows Maharashtra has secured first place in
1,[Link] number of companies under registered most of the companies totally 3,53,556
liquidation were 6,117. Numbers of companies (20%), it also has maximum number of active
which are under process of section 248 of the companies functioning this state 2,34,151 around
companies Act, 2013 were in 38,858. Out of these (20%). In the second places goes to Delhi has
number of companies laying AIPG (Active in totally registered companies were in 3,22,044
progress were 103. Finally total numbers of active (18%), it's also reflected in the actives companies
companies as on 30.06.2018 were in 11,89,[Link] were in 2,16,286 (18%). Third position secured by
of which companies limited by shares were in West Bengal has totally registered companies

Vol. V, No. 1; December-2018

A Study on Growth of Indian Corporate Sectors - A Paradigm Shift to Entrepreneurial Development in India 45

1,97,823 (11%), this is also has same position in the Uttar Pradesh state secured by fifth place for
actives companies were in 1,34,336 (11%). Fourth has highest number of registered companies were
rank secured by State of Tamil Nadu in total in 95,546(5%) and also got same position having
number of registered companies were in 1,36,650 most of the active companies were in 72,834 (6%).
(8%)and active company were in 77,900 (7%). In

Table 2 Top Ten States/UTs wise total Number of Registered and Active companies India as on 30.06.2018

Sl. No. State Registered Registered (%) Active Active (%)

1 Maharashtra 3,53,556 20 2,34,151 20
2 Delhi 3,22,044 18 2,16,286 18
3 West Bengal 1,97,823 11 1,34,336 11
4 Tamil Nadu 1,36,650 8 77,900 7
5 Uttar Pradesh 95,546 5 72,834 6
6 Telangana 98,754 6 71,301 6
7 Karnataka 1,07,424 6 69,615 6
8 Gujarat 96,003 5 63,333 5
9 Rajasthan 54,933 3 37,401 3
10 Kerala 48,253 3 32,277 3
Top 10 states 15,10,986 85 10,09,434 85
Others 2,68,775 15 1,80,392 15
Total 17,79,761 100 11,89,826 100
Source: MCA, MIB, June 2018.

Sixthrank secured by sate of Telanganafor having 37,401(3%). The tenth position held by the state of
maximum number of registered companies were in for having more number of registered companies
98,754 (6%) and active companies were in 72,834 were in 48,253 (3%) and active companies were in
(6%) as on 30.06.2018. In the next position secured 32,277 (3%) on his state. This results indicated that
by state of Karnataka has more number of the top ten states/UTs having 15,10,986 (85%) of
registered companies were in 1,07,424 and also in the registered companies and 10,09,434 (85%) of
the active companies were in 69,615 (6%). Eighth the actives companies in India. Others State/UTs
place secured by state of Gujarat for having are having only 2,68,775 (15%) of the registered
maximum number of registered companies companies and also having 1,80,392 (15%) of the
96,003(5%), as well as in the active companies active companies. Finally total number of
were in 63,333 (5%). In the next position held by registered companies were in 17,79,761 and active
state of Rajasthan for having more number of companies were in 11,89,826 as on 30.06.2018 in
registered companies were in 54,933 (3%) and also India.
having in the active companies were in

Vol. V, No. 1; December-2018

46 [ ISSN 2349-7920 ] SMS Journal of Entrepreneurship & Innovation

Chart 1 Top Ten States/UTs wise Total Number of Registered and Active companies in
India as on 30.06.2018

Registered Active
353,556

322,044

268,775
234,151

216,286

197,823

180,392
136,650
134,336

107,424
98,754

96,003
95,546
77,900

72,834

71,301

69,615

63,333

54,933

48,253
37,401

32,277
Sectors-wise Active Companies as on 30.06.2018

Table 3 Sectors - wise Active Companies as on 30.06.2018

Number of Active Companies as on 30 th June, 2018
S No Sectors
Private (%) Public (%) Total (%)
1 Agriculture 31,340 3% 3,015 4% 34,355 3%
2 Industry 3,40,041 30% 27,636 37% 3,67,677 31%
3 Services 7,28,531 65% 40,122 54% 7,68,653 65%
4 Others 15,927 1% 3,214 4% 19,141 2%
Total 11,15,839 100 73,987 100 11,89,826 100%
Source: MCA, MIB, June 2018.

The above table 3 and chart 2 shows that the sector companies are in other sectors (15,297) (1%). It
wise total number of private, public and total active shows majority of number of active public
companies as on [Link] indicates that companies are in services sectors 40,122 (54%),
highest number of active private companies are in followed by industry sectors (27,636) (37%),
services sectors 7,28,531 (65%), followed by agriculture sectors (3,015) (4%) and remaining
industry sectors (3,40,041) (30%),agriculture active companies are in other sectors (3,214) (4%).
sectors (31,340) (3%) and remaining active

Vol. V, No. 1; December-2018

A Study on Growth of Indian Corporate Sectors - A Paradigm Shift to Entrepreneurial Development in India 47

7,68,653 (65%)
7,28,531 (65%)

40,122 (54%)
(37%)

3,67,677 (31%)
3,40,041 (30%)

27,636
(4%)

34,355 (3%)
31,340 ( 3%)

15,927 (1%)

3,214 (4%)

19,141 (2%)
3,015

Agriculture Industry Services Others

Private Companies 3% 30% 65% 1%
Public Companies 4% 37% 54% 4%
Total Companies 3% 31% 65% 2%

Chart 2 Sectors -wise Number of Active Companies as on 30th June, 2018

It clearly displayed that 65% of total number of (31%),agriculture sectors (34,355) (3%) and
active companies are in services sectors 7,68,653, remaining active companies are in other sectors
followed by industry sectors (3,67,677) (19,141) (2%).
Sectors -wise active companies authorized capital as on 30.06. 2018
Table 4 Sectors -wise active companies authorized capital (in Rs. Crore) as on 30 th June, 2018
Table 4 Sectors -wise active companies authorized capital (in Rs. Crore) as on 30 th June, 2018
Active Companies authorized capital (in Rs. Crore)
S No Sectors
Private (%) Public (%) Total (%)
1 Agriculture 23,455.36 1% 34,236.10 1% 57,691.46 1%
2 Industry 10,03,566.18 48% 23,82,958.64 57% 33,86,524.82 54%
3 Services 10,13,873.02 49% 16,57,354.55 39% 26,71,227.57 42%
4 Others 41,955.38 2% 1,39,855.72 3% 1,81,811.10 3%
Total 20,82,849.94 100 42,14,405.02 100 62,97,254.95 100
Source: MCA, MIB, June 2018.

The above table 4 and chart 3 shows that the sector (23,455.36) (1%). It shows that maximum of total
wise share capital of private, public and total active number of public active companiesauthorized
companies as on 30.06.2018. It explained that most capital (in Rs. Crore) are in industry sectors
of the private companiesauthorized capital (in Rs. (23,82,958.64) (57%), followed by services
Crore) are in services sectors (10,13,873.02) sectors (16,57,354.55) (39%),other sectors
(49%), followed by industry sectors (10,03,566.18) (1,39,855.72) (3%) and rest of the active
(48%),other sectors (41,955.38) (2%) and rest of companies are in agriculture sectors (34,236.10)
the active companies are in agriculture sectors (1%). It shows that maximum of total number of

Vol. V, No. 1; December-2018

48 [ ISSN 2349-7920 ] SMS Journal of Entrepreneurship & Innovation

active companiesauthorized capital (in Rs. Crore) (42%),other sectors (1,81,811.10) (3%) and rest of
are in industry sectors (33,86,524.82) (54%), the active companies are in agriculture sectors
followed by services sectors (26,71,227.57) (57,691.46) (1%).
Chart 3 Sectors -Wise active companies authorized capital(in Rs. crore ) as on 30th June, 2018

23,82,958.64 (57%)

33,86,524.82 (54%)

(49%)
10,03,566.18 (48%)

(42%)
16,57,354.55 (39%)
10,13,873.02

26,71,227.57

1,39,855.72 (3%)

1,81,811.10 (3%)
41955.38 (2%)
23455.36 (1%)

57691.46 (1%)
34236.1 (1%)

Agriculture Industry Services Others

Private Companies 1% 48% 49% 2%
Public Companies 1% 57% 39% 3%
Total Companies 1% 54% 42% 3%

Economic activity wise active companies as on 30.06.2018

Table 5 Economic activity wise active companies as on 30.06.2018
Number of Active Companies
S No Sectors Wise Private Public Total
Number % Number % Number %
1 Business Services 3,59,330 32 11,212 21 3,70,542 31
2 Manufacturing 2,15,688 19 19,935 27 2,35,623 20
3 Trading 1,47,214 13 6,705 15 1,53,919 13
4 Construction 1,00,896 9 5,060 10 1,05,956 9
5 Real Estate and Renting 71,278 6 3,648 7 74,926 6
6 Community & Social Services 67,893 6 4,131 7 72,024 6
7 Finance 48,167 4 12,661 3 60,828 5
8 Transport &Communications 33,907 3 1,592 3 35,499 3
9 Agriculture 31,340 3 3,015 3 34,355 3
10 Others 15,927 1 3,214 1 19,141 2
11 Electricity, Gas & Water 12,250 1 1,829 1 14,079 1
12 Mining & Quarrying 11,207 1 812 1 12,019 1
13 Insurance 742 0 173 1 915 0
Total 11,15,839 100 73,987 100 11,89,826 100
Source: MCA ,MIB June 2018

Vol. V, No. 1; December-2018

A Study on Growth of Indian Corporate Sectors - A Paradigm Shift to Entrepreneurial Development in India 49

In the above table 5 shows that economic activity- trading (6,705) (15%) and remaining in others
wise private, public, total number active sectors. Economic-activity wise total companies
companies in India as on 30.06.2018. Economic- shows that the Business Services (3,70,542)
activity wise Private company wise shows that the (31%). Followed by manufacturing sectors
Business Services (3,59,330) (32%). Followed by (2,35,623) (20%), trading(1,53,919) (13%) and
trading (1,47,214) (13%), manufacturing sectors remaining were in others sectors.
(2,15,688) (19%) and were in others sectors.
Economic-activity wise Public company shows Economic activity wise share capital of active
that the manufacturing sectors (19,935) (27%). companies as on 30.06.2018
Followed by Business Services (11,212) (21%)
Table 6 Economic activity wise share capital of active companies as on 30.06.2018
Authorized Capital
S No Sectors Private Public Total
(in Rs. Crore) % (in Rs. Crore) % (in Rs. Crore) %
1 Manufacturing 5,71,638.05 32 9,00,919.16 21 14,72,557.21 23
2 Electricity, Gas 1,66,062.29 19 11,44,326.15 27 13,10,388.43 21
3 Business Services 3,95,582.68 13 6,30,333.60 15 10,25,916.29 16
4 Finance 1,80,955.78 9 4,06,602.68 10 5,87,558.46 9
5 Construction 2,22,094.88 6 2,75,673.06 7 4,97,767.94 8
6 Transport, storage 54,768.91 6 2,81,630.95 7 3,36,399.86 5
7 Trading 2,07,868.96 4 1,11,022.61 3 3,18,891.57 5
8 Community 81,966.53 3 1,37,985.39 3 2,19,951.91 3
9 Others 41,955.38 3 1,39,855.72 3 1,81,811.10 3
10 Real Estate Renting 90,036.06 1 39,419.61 1 1,29,455.67 2
11 Mining & Quarrying 43,770.97 1 62,040.27 1 1,05,811.24 2
12 Agriculture 23,455.36 1 34,236.10 1 57,691.46 1
13 Insurance 2,694.10 0 50,359.71 1 53,053.81 1
Total 20,82,849.94 100 42,14,405.02 100 62,97,254.95 100

Source : MCA, MIB, June 2018 .

In the above table 6 explains that economic wise, capital wise (in Rs. Crore) shows that the
activity-wise and share capital wise private, public, manufacturing sectors (9,00,919.16) (21%).
total number active companies in India as on Followed by Electricity, Gas & Water companies
30.06.2018. Private company wise, Economic- (11,44,326.15) (27%), Business Services
activity wise, capital wise (in Rs. Crore) shows that (6,30,333.60) (15%) and remaining were in others
the manufacturing sectors (5,71,638.05) (32%). sectors. Total companies wise, Economic-activity
Followed by Electricity, Gas & Water companies wise, Share capital (in Rs. Crore) shows that the
(1,66,062.29) (19%), Business Services manufacturing sectors (14,72,557.21) (23%).
(3,95,582.68) (13%) and remaining were in others Followed by Electricity, Gas & Water companies
sectors. Public company wise, Economic-activity (13,10,388.43) (21%), Business Services

Vol. V, No. 1; December-2018

50 [ ISSN 2349-7920 ] SMS Journal of Entrepreneurship & Innovation

(10,25,916.29) (16%) and remaining were in others sectors.

Authorized Share Capital Range Wise Active Companies in India as on 31.03.2018

Table 7 Authorized Share Capital Range Wise Active Companies in India as on 31.03.2018
Private Public Total
S No Share Capital Range
Number % Number % Number %
1 Up to 1 lakh 401076 36.66% 3548 4.81% 404624 34.65%
2 Above 1 lakh to 5 lakh 183678 16.79% 11054 14.98% 194732 16.67%
3 Above 5 lakh to 10 lakh 176455 16.13% 7297 9.89% 183752 15.73%
4 Above 10 lakh to 25 lakh 91529 8.37% 6287 8.52% 97816 8.38%
5 Above 25 lakh to 50 lakh 75740 6.92% 5680 7.70% 81420 6.97%
6 Above 50 lakh to 1 crore 61712 5.64% 8001 10.84% 69713 5.97%
7 Above 1 crore to 2 crore 38720 3.54% 5368 7.28% 44088 3.78%
8 Above 2 crore to 5 crore 37277 3.41% 8860 12.01% 46137 3.95%
9 Above 5 crore to 10 crore 12839 1.17% 6306 8.55% 19145 1.64%
10 Above 10 crore to 25 crore 8185 0.75% 5352 7.25% 13537 1.16%
11 Above 25 crore to 100 crore 5019 0.46% 3813 5.17% 8832 0.76%
12 Above 100 crore to 500 crore 1465 0.13% 1385 1.88% 2850 0.24%
13 Above 500 crore to 1000 crore 184 0.02% 256 0.35% 440 0.04%
14 Above 1000 crore 203 0.02% 569 0.77% 772 0.07%
Total 1094082 100% 73776 100% 1167858 100%
Source : MCA, MIB, March 2018 .

In the above table 7 shows that the number of active the more than 90% of public companies fallen in
private, public and total companies in share capital the share capital range of less than 25 Crores.
ranges wise in India as on 31.03.2018. Totally
10,94,082 private companies were in India its Total number of companies 11,67,858 public
amounted to 93.68% total companies in India as on companies were in India as on 31.03.2018. Out of
31.03.2018. Out of the private companies 4,01,076 the total companies 4,04,624 (34.65%) of
(36.66%) of companies were fallen in the category companies were fallen in the category of up to 1
of up to 1 lakh. Followed by 16.79% of private lakh. Followed by 16.67% of total companies were
companies 1, 83,678 were in the group of above in the group of above 1 lakh to 5 lakh. This result
one to 5 lakh. This result clearly shows that the clearly indicated that the more than 75% of total
more than 75% of private companies fallen share companies fallen in group of less than 50 lakh.
capital range of less than 25 lakh.
Authorized Share Capital Range Wise Active
Totally 73,776 public companies were in India it's Companies in India as on 31.03.2018
amounted to 6.32% total companies in India as on
31.03.2018. Out of the public companies 11,504 In the below table 8 and chart 4 enlightens that
(14.98%) of companies were fallen in the category authorized share capital (in Rs. Crore) range wise
of above 5 lakh to 10 lakh. Followed by 12.01% of private, public and total companies wise as on
public companies were in the cluster of above 2 31.03.2018. In the case total share capital range
Crore to 5 Crores. This result clearly exhibited that wise private companies contribution were

Vol. V, No. 1; December-2018

A Study on Growth of Indian Corporate Sectors - A Paradigm Shift to Entrepreneurial Development in India 51

20,19,422.67 (Rs in Crores) 33%. Out of this 7, companies fallen in share capital range of above
46,030.36 (Rs in Crore) 37% of private companies 100 Crore to 500 Crores and above 25 Crore to 100
fallen in the above 1000 crore share capital range. Crores. It's amounted to nearest 65% share capital
Followed by 316992.82 (Rs in Crores) 16%, range and remaining 35% were falls in the other
248171.34 (Rs in Crores) 12% of private share capital range of private sectors.
Table 8 Authorized Share Capital Range Wise Active Companies in India as on 31.03.2018
Private Public Total
S No Share Capital Range
(Rs in Crore) % (Rs in Crore) % (Rs in Crore) %
1 Up to 1 lakh 3836.5 0% 11.44 0% 3847.94 0%

2 Above 1 lakh to 5 lakh 7824.19 0% 544.92 0% 8369.11 0%

3 Above 5 lakh to 10 lakh 17360.66 1% 703.51 0% 18064.17 0%

4 Above 10 lakh to 25 lakh 18942.06 1% 1363.61 0% 20305.67 0%

5 Above 25 lakh to 50 lakh 32677.82 2% 2575.01 0% 35252.83 1%

6 Above 50 lakh to 1 crore 54774.74 3% 7516.92 0% 62291.66 1%

7 Above 1 crore to 2 crore 64087.7 3% 9248.05 0% 73335.75 1%

8 Above 2 crore to 5 crore 134696.54 7% 34757.08 1% 169453.62 3%

9 Above 5 crore to 10 crore 100431.41 5% 49953.27 1% 150384.68 2%

10 Above 10 crore to 25 crore 135567.6 7% 91057.58 2% 226625.18 4%

11 Above 25 crore to 100 crore 248171.34 12% 199755.08 5% 447926.43 7%

12 Above 100 crore to 500 crore 316992.82 16% 303469.06 7% 620461.87 10%
13 Above 500 crore to 1000 crore 138028.93 7% 202681.46 5% 340710.4 6%

14 Above 1000 crore 746030.36 37% 3169344.73 78% 3915375.09 64%

Total 2019422.67 100% 4072981.72 100% 6092404.4 100

Source : MCA, MIB, March 2018 .

In the case of total share capital range wise the the total companies contributions were
public companies contributions were 40,72,981.72 60,92,404.40 (Rs in Crores) 100%. Out of this
(Rs in Crores) 67%. Out of this 31,69,344.73 (Rs in 3915375.09 (Rs in Crore) 64% of total companies
Crore) 78% of public companies fallen in the above fallen in the above 1000 crore share capital range
1000 crore share capital range and remaining 22% and remaining 34% of total companies were falls in
of public companies were falls in the other capital the other capital ranges.
ranges. In the case total share capital range wise

Vol. V, No. 1; December-2018

52 [ ISSN 2349-7920 ] SMS Journal of Entrepreneurship & Innovation

The above table 9 shows that the totally 18,153 one person and social services sectors 1,908 (7%), Trading Sectors 1,296
companies (OPCs) registered with authorized share capital of (2%) and transport and storages sectors 420 (2%) one person
(Rs in lakh) 46,106.63 in India as on 30.06.2018. The highest companies registered in India. Industrial sectors totally 2,211
number of one person companies (OPCs) registered India in (12%) one person companies (OPCs) registered. In this
services sectors totally 15,679 (87%) with authorized share sector, manufacturing 1,385 (8%), Construction 706 (4%),
capital (Rs. in lakh) 37634.13 (82%) as on 30.06.2018. Out of Electricity, Gas and water 75 and mining and quarrying 45
this business services sectors registered majority of one One Person Companies (OPCs) registered in India.
person companies (OPCs) 11,613 (65%) with authorized Agricultural sectors totally 261(1%) of One Person
share capital of (Rs. in lakh) 26,086.53 (57%) and community Companies (OPCs) in India as on 30.06.2018.
Foreign companies registered and active as on 30.06.2018

Table 10 Foreign companies registered and active as on 30 -06-2018

S No Financial year Registered Active
1 Upto 31-03-2013 - 3,240
2 2013 -14 216 3,306
3 2014 -15 157 3,314
4 2015 -16 149 3,336
5 2016 -17 160 3,361
6 2017 -18 134 3,372
7 2018 - June 18* 25* 3,379*
Source : MCA, MIB, June 2018 .

The above table 10 clearly shows that the total more than hundreds of new foreign companies
number of foreign companies in India 3,240 as on registered in India.
31-03-2013. In the 2013-14 totally 216 new foreign
companies registered and end with totally 3,306 Conclusion
active companies in India as on 31.03.2014. During
the 2014-15 totally 157 new foreign companies This study finally concluded that growth of private,
registered ending with 31.03.2015 totally 3,314 public government foreign and other type of
companies were functioning in India. In the year companies in India after independence is growing
2015-16 totally ending with 3,336 active foreign staidly and positively. It is indicates that
companies in India. This period totally 149 foreign government of India, State/ Union governments
companies were registered. During the financial and other regulators agencies regulated and
year 2016-17 totally 160 new foreign company implemented effectively in many incentives for
registered ending with 3,361 active foreign companies birth to winding up. Major important
companies in India as on 31.03.2017. In the year of economic reform after the independence like
2017-18 totally 134 new foreign companies were implementing new Companies Act 2013 and GST
registered ending with 3,372 foreign companies Act 2017 carried out by the government has draw
active as on 31.03.2018. During 01.04.2018 to attention to on creating an investor friendly
30.06.2018 totally 25 new foreign companies environment. In this technological innovations and
registered in India end with totally 3,379 foreign developments all over the world, India corporate
companies are active in India as on 30.06.2018. sectors also changing its old traditional methods
This study results indicated that ever financial year services into online methods services to its users at

Vol. V, No. 1; December-2018

A Study on Growth of Indian Corporate Sectors - A Paradigm Shift to Entrepreneurial Development in India 53

77.81%
64.27%
Chart 4 Share Capital Range Wise Active Companies in India as on 31.03.2018

36.94%
15.70%
Private Public Total

12.29%

10.18%
7.45%
7.35%

6.84%
6.71%
6.67%

5.59%
4.98%
4.97%

4.90%
3.72%
3.17%

2.78%
2.71%

2.47%

2.24%
1.62%

1.23%
1.20%
1.02%
0.94%
0.86%

0.85%
0.58%
0.39%

0.33%
0.30%

0.23%
0.19%

0.18%
0.14%
0.06%

0.06%
0.03%
0.02%
0.01%
0.00%
Up to 1 lakh

Above 1000 crore

Above 1 lakh to 5 lakh

Above 10 lakh to 25 lakh

Above 25 lakh to 50 lakh

Above 5 lakh to 10 lakh

Above 50 lakh to 1 crore

Above 1 crore to 2 crore

Above 2 crore to 5 crore

Above 10 crore to 25 crore

Above 5 crore to 10 crore

Above 25 crore to 100 crore

Above 500 crore to 1000 crore

Above 100 crore to 500 crore
Sectors-Wise One Person Companies (OPCs) as on 30.06.2018

Table 9 Sector Wise One Person Companies (OPCs) as on 30.06.2018

Total Collective Authorized
S No Sectors Number of % Capital %
(OPCs) (Rs in lakh)
I Agricultural sectors 261 1 926.3 2
II Industry 2,211 12 7,516.20 16
1 Manufacturing 1,385 8 4,351.35 9
2 Construction 706 4 2,757.35 6
3 Electricity, Gas & Water 75 0 273.5 1
4 Mining & Quarrying 45 0 134 0
III Services 15,679 87 37,634.13 82
1 Business Services 11,613 65 26,086.53 57
2 Community & Social Services 1,908 11 4,614.23 10
3 Trading 1,296 7 3,867.92 8
4 Real Estate and Renting 371 2 1,327.30 3
5 Transport and storage 420 2 1,163.15 3
6 Finance 69 0 555 1
7 Insurance 2 0 20 0
IV Others 2 0 30 0
Total 18,153 100 46,106.63 100
Source : MCA, MIB, June 2018 .

Vol. V, No. 1; December-2018

54 [ ISSN 2349-7920 ] SMS Journal of Entrepreneurship & Innovation

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