The number of new companies incorporated under the companies law rose 26 per cent to over 1.55 lakh in 2020-21 as compared to the previous year, according to a report.
In the report, Rubix Data Sciences on Wednesday said the last financial year started with a record-low registration of 3,209 companies in April 2020 and ended at a record high in March 2021 when the count stood at 17,324 companies.
"1,55,377 new companies were registered in India during FY2020-21 compared with 1,22,721 in FY2019-20, recording a 26 per cent increase... momentum in new company registration has continued in FY2021-22 despite the second wave of COVID," it noted.
Rubix Data Sciences is a technology and analytics-based B2B risk management and monitoring platform.
The report said the registration of new companies in the manufacturing sector rose nearly 45 per cent from 23,014 in 2019-20 to 33,483 in 2020-21.
"In the services sector, new company registrations grew by 16 per cent. Remarkably, the number of new companies registered in agriculture and allied activities grew by a whopping 112 per cent," it added.
The number of new Limited Liability Partnerships (LLPs) went up around 17 per cent to 42,185 in the last fiscal year compared to 36,176 in 2019-20.
Mohan Ramaswamy, Co-Founder and CEO of Rubix Data Sciences, said India has made big strides in the ease of starting a business.
"Growth in the annual rate of new firm formation suggests that the concentration of economic activity is shifting away from a limited number of firms to many new entrants," he added.