The Indian corporate affairs ministry reported that over 1.96 lakh companies and Limited Liability Partnerships were incorporated in the country this year, up from 1.88 lakh in the previous year. The ministry emphasized the importance of enhancing compliance and ease of doing business in corporate governance.
According to the Limited Liability Partnership (Third Amendment) Rules, 2023, notified by the Ministry of Corporate Affairs (MCA), even upcoming LLPs have to maintain such a register, at their registered offices, within 30 days of incorporation. The new rules came into force on October 28.
Industry bodies in India have submitted their wish list for the interim budget for 2024-25. They are requesting an extension of the concessional tax rate of 15% for domestic infrastructure companies and non-corporate taxpayers, exemption from withholding tax on payment of interests on overseas bonds with a maturity period of more than five years, and the ability to carry forward and set-off business losses for the services sector.
Industry groups are proposing several direct tax measures for the Vote on Account, including extending the concessional tax rate of 15% to domestic infrastructure companies and non-corporate taxpayers like LLPs and trusts. They are also seeking exemption from withholding tax on payment of interests on overseas bonds with longer maturities, allowing carry forward and set off of business losses for the service industry, and clarification on the applicability of prerequisites.
As many as 120,966 companies and LLPs were incorporated between April and September, up 11.4% from 108,583 a year before, according to the latest data compiled by the ministry of corporate affairs (MCA).