India witnessed a historic surge in new company registrations in September 2025, soaring 108% year-on-year to 23,113, according to data from the Ministry of Corporate Affairs (MCA). This marks the highest annual growth in at least five years, signaling renewed investor confidence amid robust macroeconomic fundamentals and positive global outlooks.
The first half of FY26 recorded a 38.4% increase in company incorporations — the strongest pace in five years. Notably, April 2025 saw an all-time high of 23,776 company registrations, underscoring sustained entrepreneurial momentum.
Officials attributed the rise to a combination of better-than-expected GDP growth of 7.8% in Q1 FY26, a revival in rural consumption, and an improved global perception of India’s economy. Positive assessments from rating agencies like S&P and forecasts from the International Monetary Fund (IMF) have also reinforced market confidence.
A senior official said that many of the newly incorporated entities were subsidiaries of foreign firms, indicating a potential rebound in foreign direct investment (FDI) flows. “The anticipation of rising domestic demand, supported by recent GST cuts, has lifted investor sentiment,” the official added.
Experts see this as a validation of India’s resilient growth narrative. “The surge in company registrations shows that global investors are regaining confidence in India. Despite global uncertainty, India continues to outperform other major economies,” said Sandeep Jhunjhunwala, Partner at Nangia Andersen LLP.
The IMF expects India to remain the fastest-growing major economy, projecting 6.6% GDP growth for FY26, compared to China’s 4.8%. The RBI has also revised its FY26 GDP growth forecast upward to 6.8%, from 6.5% earlier.
As per MCA data, business services account for the highest share of active companies in India (26%), followed by manufacturing (19%), and community, personal, social services, and trading (14% each).
While company registrations surged, new LLP formations saw a marginal decline — from 23,013 in Q1 FY26 to 22,221 in Q2 — reflecting a shift in investor preference toward full-fledged company structures.
With both domestic and foreign investors doubling down on India’s growth story, the record-breaking registrations signal not just optimism but also renewed entrepreneurial energy driving India’s next phase of expansion.
