Company Registration Demand Starts to Pick Up as the World Unlocks

  • February 22, 2022
  • Dushyant Sharma
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Coronavirus, a disease that locked us in homes, forced the shops to close, companies to shut down and transportation to never come around has had an obvious impact on the need to setup business. It has sucked out the excitement of starting a business from many.

During the first quarter of the last year, over 19,000 companies were registered. But in 2020, there is a 39% decrease. The condition of LLP registration in India is no better. During the first quarter of 2019, nearly 17000 LLPs were registered, but this year, that number has reduced to merely 4100.

That being said, the cloud of pandemic-losses is lifting. We are now all witnessing as company registration demand starts to pick up as the world unlocks.

February was the month when India started to realize the severity of COVID-19. That said, that realization didn’t come from reports of the first deaths in India; it was the downward slope of finances.

The number of parties interested in company registration and  LLP registration decreased nominally in February, but it was March when we realized that economically, we are in trouble. From 10,000 company and LLP registrations per month to 6,000, the loss was steep. It was also the time when the lockdown measures became more stringent, which created chokepoints in many businesses, forcing many of them to shut down.

The interest in business registrations reached the lowest in April, with only 1,000 company registrations and only 500 LLP registrations. It was the time when the lockdown measures were most stringent.

Registration needs increase in the second half of April

It’s a testament of India’s zeal in starting business that by the second half of April, when the lockdown measures were the highest, company and LLP registration demand started to increase at a slow, yet effective, pace.

A company is the most popular business entity in India that’s comprises of directors and shareholders. For start-ups, a private limited company is a holy grail of reliability, consistency and stability.

An LLP is a business entity that possesses the twin benefits of partnership and company. It’s structured like a partnership but it functions like a company. For traders, finance business runners and other entrepreneurs of similar domain, an LLP provides a flexible business infrastructure.

Now, the company registration demand has even overtaken the previous year amount. In June 2020 alone, nearly 11,000 companies have been registered, as  compared to 9,700 companies registered in June 2020.

The reason behind the resurgence

Apart from the obvious stubbornness and perseverance of the entrepreneurs, the increase in company and LLP registration rate can be attributed to two things:

  1. Government Policies: In order to help entrepreneurs, government has brought several incentives.
  2. Innovation: The lockdown environment has forced entrepreneurs to think out of the box. In this do or die scenario, many have embraced the tech-driven approach of doing business.
  3. Rising Nationality: Indian entrepreneurs aren’t just doing it for themselves anymore, they want to actively participate in the India’s growth in a future superpower.


Coronavirus was once a boogeyman that made all of us afraid. Our health, our willingness to do more and our businesses, all suffered because of it. Not anymore. While there was a significant dip in the number of company registrations during the initial phase of infections, our entrepreneurs are now bouncing back, and are now willing to setup their businesses.

Are you ready to bounce back? If you are, our online company registration services are ready for you.

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Dushyant Sharma
Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

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