29% Fewer Firms Set Up In May

There has been a 29 per cent fall in the number of companies registered in May 1998 nationwide over May 1997.

Against 3,343 companies registered in May 1997, 2,370 companies were registered in May 1998. This is only marginally above the 2,299 companies registered in April 1998.

Further, eight companies with total paid-up capital of Rs 482.4 lakh ceased functioning during May 1998. Of these, three were public limited companies and five private limited companies.

The highest number of companies registered during the month was 635 in Delhi followed by 453 in Maharashtra, 191 in Tamil Nadu and 171 in West Bengal. The four states accounted for 61 per cent of companies registered during the month.

 

Of the companies registered in May, 2,363 were limited by shares, including one government public limited company having an authorised capital of Rs 3 crore and seven guarantee companies. The total authorised capital of companies limited by shares amounted to Rs 651.4 crore.

Of the 236 private companies limited by shares registered during the month, 174 were public limited companies with an authorised capital of Rs 142.2 crore and 2,188 were private limited companies with an authorised capital of Rs 507.2 crore. Industry ministry sources conceded the figures were indicative of the fact that business interest was slackening.

Earlier, a survey conducted by the Delhi-based National Council for Applied Economic Research (NCAER) found that business confidence is at its lowest since November 1994 with June 1998 registering one of sharpest falls of 17.8 per cent.

The survey had also pointed out that small firms were worried about competition from large domestic and foreign firms and were pessimistic about the future.