Significant Rise In LLP registration Reflects Optimism

The number of limited liability partnerships (LLPs) incorporated in the first three quarters of FY24 surged about 54% year on year, outpacing an over 4% rise in the registration of companies during the same period on the back of robust prospects of service exports and domestic services trade, which rebounded this fiscal year despite having global growth slowdowns, the Economic Times reported, quoting a senior government official.

According to the data from the Ministry of Corporate Affairs (MCA), 42,524 LLPs and 137,109 companies were registered between April and December this fiscal year, both scaling fresh highs.

The growth in the LLPs reflects robust optimism about the Indian economy despite having macroeconomic headwinds. However, it was reported that the data came amid complaints of technical glitches involving the latest version of the MCA21 portal for corporate filings and a continued crackdown on shell companies.

Services exports from India reached $220.7 billion until November this fiscal year, up from a year before, while outbound merchandise shipments reached $278.8 billion during the same period, which is an almost 6% hike and a 6.5% drop, respectively. came on top of.

The International Monetary Fund (IMF) had earlier stated that India would remain the world’s fastest-growing major economy with an expansion of 6.3% in both this fiscal year and the next, more than double the global averages. At 6.3%, the IMF”s growth forecast is less compared to the central government”s forecast of 6.5% on the back of 7.6% expansion in the September quarter.

The report attributes the emergence of a large number of companies and LLPs to the government’s efforts, which resulted in reducing India Inc.’s compliance burden, decriminalizing several minor offences, and removing redundant laws.

According to Finance and Corporate Affairs Minister Nirmala Sitharaman, the NDA government has overhauled 39,000 unnecessary compliances and 1,500 archaic laws.