MCA records 1.55 lakh business formations in FY 2020-21, up 27% year on year, and 42,186 limited liability partnerships in FY 2020-21, up 17% year on year

The Ministry of Corporate Affairs (MCA) reported more than 1.55 lakh company incorporations in FY 2020-21, up from 1.22 lakh in FY 2019-20, a 27 percent rise. Similarly, 42,186 Limited Liability Partnerships (LLPs) were formed this year, up from 36,176 the previous year, a 17 percent rise. Given the country’s unprecedented condition as a result of the COVID-19 pandemic, the increase is important.

As part of the Government of India’s Ease of Doing Business initiative, the MCA has taken a range of measures to reduce the number of procedures, time, and costs associated with starting a business in India. Also after the lockdown, the Central Registration Centre (CRC) continued to work, allowing stakeholders to form companies and limited liability partnerships (LLPs).

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On March 31, 2021, a grant of Rs. 4,608 crore was issued for Local Bodies

On Wednesday, the Department of Expenditure issued Rs 4,608 crore to states for grant-in-aid to local governments. Rural Local Bodies (RLBs) and Urban Local Bodies (ULBs) are also eligible for grants. RLBs received Rs. 2,660 crore, while ULBs received Rs. 1,948 crore. The grants were distributed in accordance with the 15th Finance Commission’s recommendations.

The Ministry of Finance has released a total of Rs. 87,460 crore in local body grants to 28 States for the fiscal year 2020-21. Rs. 60,750 crore has been allocated to RLBs, while Rs. 26,710 crore has been allocated to ULBs.

The RLB grants are intended for all tiers of the panchayat – village, block, and district- as well as the States’ 5th and 6th scheduled areas. RLB grants are divided into two categories: basic/untied and tied. RLBs will use the basic grants to address location-specific needs. Tied grants, on the other hand, can only be used for (a) sanitation and preserving open-defecation-free (ODF) status, and (b) drinking water supply, rainwater harvesting, and water recycling. The Ministry has released a basic RLB grant of Rs. 32,742.50 crore and a tied RLB grant of Rs. 28,007.50 crore for the fiscal year 2020-21. ULB grants are classified into two categories: grants for cities with populations of one million or more, and grants for cities with populations of less than one million. In 2020-21, the Ministry has allocated Rs. 8,357 crore to Million Plus cities, while Rs. 18,354 crore has been allocated to Non-Million Plus cities.

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