‘5,908 small companies registered in J&K during last five years’

New Delhi, Aug 3: Jammu and Kashmir registered 5,908 small companies during the last five financial years, including 1,558 in 2025-26, the Ministry of Corporate Affairs informed the Lok Sabha on Monday.
According to the Ministry data, J&K registered 923 small companies in 2021-22, 886 in 2022-23, 1,301 in 2023-24, 1,240 in 2024-25, and 1,558 in 2025-26. The figures are as of 27 July 2026. The UT also recorded 585 Limited Liability Partnerships (LLPs) during the five-year period. The year-wise figures were 64 in 2021-22, 63 in 2022-23, 101 in 2023-24, 141 in 2024-25, and 216 in 2025-26.
In the startup ecosystem, Jammu and Kashmir recorded 1,231 startups during 2021-2025, according to data provided by the Department for Promotion of Industry and Internal Trade (DPIIT). The number of startups rose from 131 in 2021 to 170 in 2022, 246 in 2023, 273 in 2024, and 411 in 2025.
The Ministry said the thresholds for classification of small companies have been revised over the years. The paid-up capital threshold was increased from Rs 50 lakh in 2014 to Rs 2 crore in 2021, Rs 4 crore in 2022, and Rs 10 crore from 1 December 2025. The turnover threshold was raised from Rs 2 crore in 2014 to Rs 20 crore in 2021, Rs 40 crore in 2022, and Rs 100 crore from 1 December 2025. The Centre said these changes have enabled more companies to fall under the “small companies” category and benefit from reduced compliance-related disclosures.
For small companies, the Ministry has provided several compliance relaxations, including optional cash-flow statements, abridged annual returns and Board reports, exemption from mandatory auditor rotation, lesser penalties, and lesser fees. Small companies are also exempted from certain pre-certification requirements for forms. The Ministry further said zero filing fee is charged for incorporation of companies having authorised share capital up to Rs 15 lakh, or companies without share capital having up to 20 members.
The Centre said simplified filings for small companies are applicable across the country, including Tier-II districts. Businesses can use the MCA21 electronic portal, which provides step-by-step e-form filing manuals, video guides, FAQs, and system prompts. A central helpdesk with toll-free, email, and live-chat facilities is also available to assist stakeholders.
The latest data indicates that J&K saw the highest number of small-company registrations in the five-year period in 2025-26, while the number of LLP registrations also increased to 216 during the same year. Startup registrations likewise reached their highest annual figure in the available 2021-2025 data, with 411 startups registered in 2025. The Ministry’s response was given in reply to a Lok Sabha question on the status of small companies, startups, and LLPs registered across States and Union Territories and measures taken to simplify compliance for businesses in Tier-II districts. (KNO)