Parliament Question: Corporate Registrations in Andhra Pradesh

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 2353 ANSWERED ON Monday, August 3, 2026 /Shravana 12, 1948 (Saka) Corporate Registrations in Andhra Pradesh QUESTION

2353. Dr. Gumma Thanuja Rani:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

(a) whether the Government is aware that the MCA21 Version 3.0 portal processed 84.31 lakh forms between April, 2024 and February, 2025 and that 1,59,982 companies were registered during 2024-25 (up to February, 2025), if so, the details thereof;

(b) whether the Government considers this rate of formalisation adequate relative to the size of India's informal and semi-formal business ecosystem, if so, the details thereof;

(c) the targeted initiatives being undertaken to increase corporate formalisation in Andhra Pradesh, particularly among MSMEs, start-ups and the emerging Amaravati-based services sector;

(d) whether the data analytics-driven Compliance Management System (CMS) has been effective in reducing the backlog of non-compliant entities and the present number of registered but non-compliant companies, including shell companies; and

(e) if not, the reasons therefor? ANSWER MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS; MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS [SHRI HARSH MALHOTRA]

(a): Yes, Sir. The MCA21 system processed 84.31 lakh forms between April 2024 and February 2025, which included forms related to incorporation of companies and LLPs, annual returns, financial statements, director KYCs and other event- based filings.

Page 1 of 2(b): The term "formalisation" is not defined or utilized in the Companies Act, 2013 or in the Limited Liability Partnership Act, 2008. A company or a limited liability partnership is a legal structure for carrying on business and is regulated under the aforesaid Acts. A person or group of persons who wish to do business may do so through any legal structure suitable to their needs. The number of companies and LLPs getting incorporated have been increasing year on year.

(c): No such specific initiative is under consideration.

(d) & (e): Data analytics-driven features have been integrated in the MCA21 V3 system, including the Compliance Management System (CMS) which consists of automated alerts, exception reports and pattern analysis of filings. Companies cannot be classified into fixed categories of compliant and non-compliant as a company may have complied with one requirement and not done so for another.

The term "shell company" is not defined under the Companies Act, 2013. **** Page 2 of 2