A robust GDP growth in the first quarter of FY26 coupled with strong domestic demand have contributed to a 37.2% jump in the registration of new companies in August 2025, the latest data from ministry of corporate affairs (MCA) showed. After a two-month slump in June and July, the fresh registrations picked up pace last month to reach 20,167.
In five months of FY25, new company registrations stood at 98,862, up 28.4% on an annual basis as all five months of 2025 showed higher registrations as compared to the corresponding months in 2024 Signalling a strong pick-up in the economic activity in August, the total number of active companies jumped over 10.3% annually to touch 1.94 million last month, which is the highest level.
Business services lead in number of active companies
The sector-wise classification revealed that the business services segment has the highest number of active companies (26%) followed by manufacturing (19%), and community, personal and social services (14%). In August, service sector saw the maximum increase in the total number of active companies, followed by industry and agriculture sectors.
As per MCA bulletin, the number of active limited limited partnerships (LLPs) stood at 0.42 million in August, up 1.6% from the prior month. In the five-month period, the active LLPs jumped 6.9%, which was slightly higher than the growth (6.3%) in active LLPs in the same period last year.
Services sector dominates LLP registrations
Latest trends in the LLP registrations in August showed that services sector accounted for the largest share (74%) of new registrations followed by industry and agriculture sectors accounting for 24% and 2%, respectively.
“State-wise analysis of new registered companies shows that top three states that receive the highest number of new registrations during August 2025 were Maharashtra with 17% which amounts to 3,428 corporates, Uttar Pradesh with 11% coming in at 2,238 and Delhi following closely behind at 9% belonging to 1,749 companies with a collective paid-up capital of Rs. 400 crores for the three states,” the MCA bulletin noted.
Despite the geopolitical headwinds, the broader improvement in business environment and fewer regulatory hurdles in the registration process have contributed to the formation of new companies in FY26.