With the state bifurcation, many thought there will be shifting of registered firms from Telangana to Andhra Pradesh as most of the businessmen are from the 13 districts of Andhra Pradesh. However there are very few transfers. In the two months after Parliament passed the Bill and before the Appointed Day, around 700 firms had shifted base to AP but these transfers almost got stopped after the appointed day since the transfers will be inter state transfers which involve lengthy procedures.
However Andhra Pradesh slightly leads over Telangana in the new companies registered after the bifurcation. In June after the bifurcation, around 211 new companies with Rs 36.74 crore authorized capital were registered in AP and 177 with Rs 10.96 crore authorized capital were setup with their base in Telangana. Most of the companies registered are into business services, manufacturing, trading and real estate.
However there have been no new multinational companies registered in both the states. The United State in the month of May just before the bifurcation has 237 new company registrations. The then United AP is second in the country after UP in new registrations. After the bifurcation, according to the date in June neither AP nor Telangana were in the top three list of new registrations.
