SRINAGAR: Jammu and Kashmir recorded the registration of 5,908 small companies and 585 Limited Liability Partnerships (LLPs) over the last five financial years, while 1,231 startups were registered in the Union Territory between 2021 and 2025, according to data placed before the Lok Sabha on Monday.
The figures were provided by Minister of State for Corporate Affairs Harsh Malhotra in reply to Lok Sabha Unstarred Question No. 2422 on the status of small companies.
JK saw the registration of 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 data, updated as of July 27, 2026, showed a significant rise in registrations in the latest financial year.
The Union Territory also recorded 64 LLP registrations in 2021-22, followed by 63 in 2022-23, 101 in 2023-24, 141 in 2024-25 and 216 in 2025-26, taking the five-year total to 585.
Startup registrations in JK rose steadily from 131 in 2021 to 170 in 2022, 246 in 2023 and 273 in 2024 before reaching 411 in 2025, taking the total for the five-year period to 1,231.
Ladakh recorded 22 small companies over the five-year period covered by the data, while three LLPs were registered there. The Union Territory also recorded 23 startup registrations between 2021 and 2025.
At the national level, 8,26,580 small companies were registered during the five financial years from 2021-22 to 2025-26. The number increased from 1,40,574 in 2021-22 to 2,26,523 in 2025-26.
A total of 3,03,286 LLPs were registered across India during the same period, with annual registrations rising from 43,054 to 96,020.
The Government said the definition of a small company has been progressively expanded by raising the thresholds for paid-up share capital and turnover. The paid-up capital limit was increased from Rs 50 lakh in April 2014 to Rs 2 crore in April 2021, Rs 4 crore in September 2022 and Rs 10 crore from December 1, 2025.
The turnover threshold was similarly raised from Rs 2 crore in 2014 to Rs 20 crore in 2021, Rs 40 crore in 2022 and Rs 100 crore from December 1, 2025.
The Ministry said the higher thresholds have enabled more companies to qualify as small companies and benefit from reduced compliance-related disclosures.
Among the measures available to small companies are an optional cash flow statement, an abridged annual return and Board’s Report, exemption from mandatory rotation of auditors, reduced disclosure requirements, fewer Board meetings, lower penalties and fees, and exemption from pre-certification of certain forms by professionals.
Small companies are also exempt from the applicability of the Companies (Auditor’s Report) Order, 2020, while mergers between two or more small companies, or between a startup and a small company, can be undertaken through approval of the Regional Director under the prescribed provisions.
The Ministry said simplified filings 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, frequently asked questions and system prompts in web-based forms.
A central helpdesk offering toll-free telephone, email and live-chat support is also available to assist stakeholders with grievances relating to the MCA21 portal.
The Government said the measures were intended to reduce compliance burdens and facilitate ease of doing business for small companies and LLPs across the country, including those operating in Jammu and Kashmir.
