STATE OF NEW BUSINESS INITIATIVES IN INDIA

On an average more than 550 companies and Limited Liability Partnerships (LLPs) are incorporated daily across India. Majority of them are incorporated by chartered accountants (Highest), company secretaries (Second Highest) and lawyers(Least) for reasons known to them and their clients. Some say, one of the reason is financial and tax innovation. Key features of these highly innovative companies are:

  • Innovative addresses
  • Innovative names of companies which state the obvious
  • Innovative names of directors
  • Innovative email ids
  • Innovative financials

Of these 550 odd corporate approximately 20% are partnerships and rest 80% are companies.

STATE OF STARTING INVESTMENT AND CONFIDENCE IN RAISING CAPITAL

Starting investment obligation to be paid by the members of these 80% companies is just above ₹ 0.5 Million in average per company. While it is approximately ₹ 0.1 Million for the rest of 20% LLPs. Although, sentiments or otherwise, all of these 550 corporate, cumulatively believe to raise the capital by more than 15 times their initial investment.


STATE OF “FOUNDATIONS/ ASSOCIATIONS/ COUNCILS/ FEDERATIONS/ CHAMBERS/ CONFEDERATIONS/ ORGANIZATIONS/ FORUMS & INITIATIVES”

At-least 3 such type of entities are formed every two days in India on average. Majority of them being “Foundations”

STATE OF PUBLIC SECTOR COMPANIES IN INDIA

At-least 1 public sector (either state or central) company is formed every week in India on average. On an average such companies start with an approximate investment of 60 times more than the investment made by an average company. Such a company expects to raise 10 times more than an average company even imagines to raise. In other words such companies plan to raise their capital by 150 times its already high starting capital.

STATE OF FOREIGN COMPANIES IN INDIA

Typically 5 foreign companies officially start business in India each day. 10% of such companies plan to start their business with an average of ₹ 10 Million. The rest 90% start the company with ₹ 0.1 Million or even less.


STATE OF NON-GOVERNMENT INDIAN COMPANIES OTHER THAN “FOUNDATIONS”

More than 2100 such companies are incorporated each week in India. The 2% of such companies start as public limited corporate. These public limited companies on an average invest more than ₹ 1 Million in the starting and plan to raise another ₹ 1.5 Million (that is 2.5 times). Another 5% of such companies start as one person companies (OPCs). These OPCs plan to invest just above ₹ 0.1 Million in the beginning and expect to raise additional ₹ 0.2 Million on an average. Rest 93% companies are private.

STATE OF NON-GOVERNMENT PRIVATE INDIAN COMPANIES OTHER THAN “FOUNDATIONS” IN THEIR HOME TURF

Approximately 2000 such companies are started on paper every week across India. Of these around 1% actually, genuinely know and understand what they want to do, how they want to do it and what kind of advantage they can get by incorporating. They also know how to effectively use the potential of a private limited company while being genuine. The other 89% are proprietors who use “Private Limited” for its marketing or other appeal. Of the rest 10%, one percent are kidding themselves, around eight percent are also exploiting the system in their own way and final one percent have low ambitions than the money they actually have.


Source: Statistics are based on raw data provided by the concerned government department/ministry of India


If you have recently incorporated or are thinking of incorporating then contact me to join this research