New Delhi, July 3 -- India is witnessing a rise in businesses with simplified compliance requirements-such as one-person companies and limited liability partnerships (LLPs)-indicating growing formalization of the economy, according to data from the ministry of corporate affairs.

In the January-May period, 6,281 'one-person companies' were formed, 26% more than the number of such flexible business ownership structures created in the year-ago period.

April and May saw the number of such businesses rise by 56% and 36% year-on-year, respectively.

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These are entities owned by one individual, which, unlike sole proprietorships, have the flexibi...