The number of limited liability partnerships LLP registrations in the first three quarters of FY24 increased by around 54% year over year, significantly surpassing the increase of over 4% in the company registration in India during the same period, according to the report provided by Economic times quoting a senior government official.

As per the data shown by Ministry of Corporate Affairs (MCA) 42,524 LLPs and 137,109 companies were registered between April and December this fiscal, both scaling fresh highs. Strong hopes for services exports, which have persevered in the face of faltering goods shipments following a slowdown in global growth, are driving up the LLP numbers, according to a senior government official. The individual said that the domestic services trade has improved this fiscal year.

According to the official, the record incorporation shows increased optimism about India’s future potential in spite of the external unrest. It occurs in spite of reports of technical issues with the beta version of the MCA21 corporate filing portal and in the midst of an ongoing campaign to expose shell corporations. Sunil Talati, the chairman of the Services Export Promotion Council (SEPC), had previously stated that the current slowdown in developed countries may improve India’s prospects for services exports because these economies typically send more orders to countries like India in order to reduce costs, particularly for businesses in industries like accountancy and legal services.

India’s exports of services increased by about 6% to $220.7 billion through November of current fiscal year compared to the same period last year, while outbound shipments of goods decreased by 6.5% to $278.8 billion. In addition to record despatches over $320 billion in the previous fiscal year, services exports increased.

The International Monetary Fund (IMF) had earlier stated tha India’s economy would continue to grow at the highest rate in the world, with growth of 6.3% expected in both the current and upcoming fiscal years, which is more than twice the average for the world.However, because of the stronger-than-expected 7.6% increase in the September quarter, the Indian government anticipates that the FY24 growth rate would surpass 6.5%.

The reports attributes that Government initiatives to lower India incorporations compliance burden, decriminalise minor offences, and eliminate unnecessary regulations are some of the reasons behind the proliferation of companies and limited liability partnerships (LLPs).

Nirmala Sitharaman, the minister of finance and corporate affairs in September, declared that the current NDA administration has eliminated 1,500 outdated legislation and 39,000 unnecessary compliances. Increased company and limited liability partnership formation also suggests promising futures for the consumption of goods and services.

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