India continues to capture the global market for its ease of doing business. With this in view, India’s fast-paced growth is sure to put it miles ahead of others in the next year’s Ease of doing business ranking. Currently, India is on the 77th position amongst 190 countries in the world.
In the past decade, the cascading growth and explosion of Start-ups powered by strategic government policies have nurtured the start-up ecosystem in the country. This key phase of India’s development makes tracking its growth pivotal.
India’s leading legal-tech Vakilsearch presents the Annual report of Company Incorporation & Trademark trends in the country for the year 2019. It is noteworthy to mention that Vakilsearch incorporates close to 10% of companies and 3% of Trademark registrations in India.
Approximately 1,64,636 companies registered in 2019
The year 2019 approximated 1,64,636 companies in total. With the first quarter summing at 43,132, second quarter at 41,988, the third quarter at 39,085 and the last quarter at 40,431 companies registered.
Amongst these, 70% of entrepreneurs registered their company as Private Limited, 22% registered it as Limited Liability Partnership, 5% chose One Person Company registration and 2% got their business incorporated under the Public category. The total number of Foreign companies registered in 2019 were 138. This amounts to 0.08% of the total companies registered in India between January to December 2019.
Key takeaways of the company incorporation trend in 2019
1. Quarter one (January, February and March) recorded the maximum number of company registrations for the year 2019.
2. Top three startup sectors that emerged in 2019 were Software and IT business, Wholesale and retail sale of goods and e-Commerce business.
3. The startup ecosystem in 2019 was male dominated with a 4:1 ratio of male to female entrepreneurs respectively.
4. Quarter one of 2019 has again recorded the highest Average Authorized Capital of the year.
Hottest hubs for incorporation in India
In 2019, The state of Maharashtra topped the charts with a maximum number of incorporations at 34,438 business registrations registered. This is followed by Delhi with a total of 20,030 incorporations and taking the second spot. The third and the fourth positions go to Uttar Pradesh and Karnataka with 14,949 and 14,318 incorporations.
However, Telangana has took the fifth position at 10,435 registrations, pushing Tamil Nadu once place down by a very narrow margin. Tamil Nadu recorded 10,198 business incorporations. Though Tamil Nadu managed to edge out Telegana in the third quarter of 2019, the latter has emerged on the top five for Quarters one, two and four.
Over 3 lakh Trademarks applied in India for the year 2019
The total trademarks registered in the country for the year 2019 stood at 3,36,189. The first quarter saw 86,911 applications, the second quarter saw 83,176 applications, the third quarter saw 84,213 and the fourth quarter saw 81,889 applications.
Key takeaways in trademark application trend:
1. The first quarter (January to March) saw the highest number of Trademark applications.
2. Delhi has registered the maximum number of Trademark applications in the year 2019, followed by Mumbai and then Chennai.
3. The quarterly-to-quarterly growth percentage for the year 2019 is -1.49%.
For access to the entire Annual report please click here to download.
Vakilsearch.com is India’s largest online platform for legal, tax and compliance services.
Started by Hrishikesh Datar, an alumnus of the National Law School of India University, Bangalore in the year 2011, the business helps clients with government registrations, incorporations, accounting, filings, annual compliances and documentation. The company further offers several need-based services to the common man such as tax filings, property agreements and consumer rights protection. Over 300,000 businesses and individuals have had a chance to experience vakilsearch.com ‘s mission “Legal is now Simple” – in action.