Rajesh Verma, Secretary at the Ministry of Corporate Affairs, in an interview with CNBC-TV18, said with the changed definition, a number of companies will come within the fold of the small companies.

Share Market Live

NSE

More than 2 lakh companies will come into the fold of the small companies and then they will have a lesser compliance burden on them, he said.

“That will be a great benefit to the small entrepreneurs, small companies and to start-ups,” said Verma.

“Small companies contribute hugely to the Indian economy and have a great role in creation of employment and their contribution to gross domestic product (GDP) is also very substantial.”

On National Company Law Tribunal (NCLT), he said, “The Insolvency and Bankruptcy Code (IBC) came into being in the year 2016, after that the NCLT structure was created to administer the insolvency and bankruptcy regime in the country. Ever since it has come up, it has created a very conducive environment, it has provided a framework for resolution. NCLT needs to be strengthened.”

“We are continuously assessing the situation and that is why the extensions were also made based on the assessment. We will take the appropriate decision at the appropriate time,” he mentioned.

“The companies act decriminalization is now almost complete. We have decriminalize many offences which are minor in nature, procedural and technical in nature. Now we are undertaking decriminalization of the limited liability partnerships (LLPs), that is in process,” he said.

Speaking about incorporation, he said, “During the period of this financial year of April to January, more than 1,24,000 companies have been incorporated. The corresponding period of the last year, more than 1,06,000 companies have been incorporated. So there is a good growth of incorporation of the companies.”

According to him, the simplification of the process is leading to this growth.

“The Competition Commission of India (CCI) is mandated to take actions in case of cartelization. It is a body which is competent to take action based on complaint, filing or even otherwise. So the CCI is doing its job,” he said.

For more, watch the video…

(Edited by : Bivekananda Biswas)