Parliament Question: Companies in Ujjain

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 5017 ANSWERED ON MONDAY, 23RD MARCH 2026 CHAITRA 02, 1948 (SAKA) COMPANIES IN UJJAIN QUESTION 5017. SHRI ANIL FIROJIYA: WILL THE MINISTER OF CORPORATE AFFAIRS BE PLEASED TO STATE: (a) the number of Companies/Limited Liability Partnerships (LLPs) registered in the Ujjain-Alot Parliamentary Constituency during the last five years alongwith the number of them currently active at present; (b) the amount of funds spent by these Companies under Corporate Social Responsibility (CSR) in the Ujjain-Alot area during the last three years alongwith the details of development works/activities on which such funds have been utilized; (c) the schemes being implemented by the Government to promote Start-ups and new Companies in the Ujjain-Alot region alongwith the number of entrepreneurs who have benefited therefrom so far; and (d) whether the Government has noticed that the number of projects being taken up by these Companies in education, health, skill development and environmental protection sectors in the Ujjain-Alot region is very low and if so, the steps being taken by the Government to increase such numbers? 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) & ( b) Data with regard to Companies/ Limited Liability Partnerships (LLPs) registered and CSR is maintained district-wise and not Parliamentary Constituency-wise. The number of Companies registered and active in the Ujjain District during the last five years (upto 28.2.2026) are 735 and 724 respectively. The number of LLPs registered and active in the Ujjain District during the last five years (upto 28.2.2026) are 197 & 196 respectively. On the basis of annual filings made by CSR mandated companies in the MCA21 registry, Development sector-wise CSR expenditure in Ujjain district from FY 2021-22 to FY 2023-24 is at Annexure-A. Further,State-wise, District-wise and year-to-year company-wise data is available in public domain at www.csr.gov.in. (c) The Ministry of Corporate Affairs has been taking several steps to bring about ease of doing business to promote companies and start ups which inter-alia includes setting up of the Central Registration Centre (CRC), Central Processing Centre (CPC), Expanding framework for fast track merger, decriminalization of technical and procedural violations etc. An e-Form SPICe+ along with a linked form called AGILE PRO-S was introduced for providing different services at one place such as Name Reservation, Incorporation, Allotment of PAN, TAN, DIN, EPFO Registration, ESIC Registration, GST number, opening of Bank Account etc. at the time of incorporation of company to start the business immediately. Similarly, new e-Form FiLLiP (Form for incorporation of Limited Liability Partnership) was introduced for LLPs. Details of provisions of the Companies Act, 2013 to promote Start-ups is at Annexure-B. These measures benefit start-ups across the country including those in Ujjain district. (d) The legal framework for Corporate Social Responsibility (CSR) consists of Section 135 of the Companies Act, 2013, along with Schedule VII of the Act and the Companies (CSR Policy) Rules, 2014. According to the legal framework, CSR is a board-driven process and the Board of the company is empowered to plan, decide, execute and monitor the CSR activities based on the recommendation of the CSR Committee of the concerned corporate entity. The Government does not issue any directions to Corporates to spend in any particular geographic area or on any specific activity. *****Annexure-A In reply to Part (b) of Parliament question No. 5017 for 23.03.2026. Development works / activity-wise CSR expenditure in Ujjain district from FY 2021-22 to FY 2023-24 (Amount in Rs. Crores) Sl. Development Sector FY 2021-22 FY 2022-23 FY 2023-24 No. 1. Animal welfare 0.00 0.06 0.25 2. Art and culture 0.06 0.24 0.44 3. Conservation of 0.13 0.00 0.00 natural resources 4. Education 4.41 8.23 3.15 5. Environmental 1.24 2.34 3.12 sustainability 6. Gender equality 0.12 0.44 0.51 7. Health care 2.92 7.51 2.87 8. Livelihood 0.00 0.01 0.42 enhancement projects 9. Poverty, Eradicating 1.69 4.75 9.67 Hunger, Malnutrition 10. Rur al development 2.07 3.85 1.49 projects 11. Safe drinking water 0.00 0.11 0.42 12. San itation 1.95 0.18 0.00 13. Sen ior Citizens 0.70 0.07 0.05 Welfare 14. Sett ing up homes and 0.00 0.00 0.24 hostels for women 15. Sett ing up orphanage 0.00 0.00 0.00 16. Slum area 0.00 0.00 0.03 development 17. Soc io-economic 0.00 0.29 0.35 equalities 18. Spe cial education 0.00 0.00 0.29 19. Trai ning to promote 0.05 0.05 0.00 sports 20. Voc ational skills 0.00 0.91 0.96 21. Wom en empowerment 0.00 0.15 0.17 Total 15.34 29.19 24.43 *****Annexure-B In reply to Part (c) of Parliament question No. 5017 for 23.03.2026. Sr. Section/Rules of Subject Provisions in the Company Act, 2013 to support Start- No. Companies Act, ups 2013 1. Section 2(40) Financial Requirement of cash flow statement to be part of financial Statement statement is optional for Start-ups. 2. Section 73(2) Acceptanc Start-ups were exempted from procedural compliance at clause (a) to (e) e of the time of accepting deposits from its members (such as deposits issuance of a circular to its members showing the financial position of company, credit rating, depositing 20% of the maturing deposits, and certification regarding default in repayments). 3. Section 92(1) Annual Directors of a start-up are allowed to sign annual returns Return of the private limited company if the Company does not have Company Secretary. 4. Section 173(5) Meetings Under Companies Act, 2013, Board of Directors of a of Board company are required to meet at least once in 120 days, 4 board meetings in a year. However, Start-ups are exempted from holding quarterly board meetings and are allowed to hold two board meetings in a calendar year, i.e., once every six months. 5. Rule 6 of Conversion The requirement that an OPC must convert itself after its Companies of OPCs paid-up capital exceeds Rs 50 lakh and its average annual (Incorporation) into Public turnover exceeds Rs 2 crore was omitted. Since many Rules, 2014 and Private start-ups are One Person Company, this allows them to Companies retain the status as an OPC. 6. Rule 8(4) of Sweat In general, the issuance of sweat equity shares in a Companies (Share Equity company shall not exceed 25% of the paid-up capital of the Capital and company at any time. However, in case of start-ups, this Debenture) Rules, limit is upto 50% of its paid-up share capital. 2014) 7. Rule12(1)(c) of Employee In general, ESOPs are not given to employee who is a Companies (Share Stock promoter or a person belonging to the promoter group and Capital and Options a director who either himself or through his relative or a Debentures) Rules, (ESOPs) body corporate, directly or indirectly holds more than 10% 2014 equity of the company. Start-ups are allowed to issue ESOPs to promoters and directors. 8. Rule 2 (1)(c) (xvii) Convertible Start-ups can receive an amount of Rs 25 lakh or more by Companies Note way of a convertible note (convertible into equity shares (Acceptance of or repayable within a period not exceeding ten years from Deposits) Rules, the date of issue) in a single tranche, from a person, and 2014 such transactions are not considered deposit. 9. Rule 3(3) of Acceptanc Companies may ordinarily accept or renew any deposits Companies e of from its members not exceeding 35% of the paid-up share (Acceptance of deposits capital, free reserves and securities premium account of Deposits) Rules, the company. But start-ups have been permitted to accept 2014 deposits from members without any restriction on the amount. *****