The registration of new companies grew 29% on-year in May 2025 to reach 20,718, signalling a strong momentum in the economic activity since the beginning of the current financial year, latest data from corporate affairs ministry shows. The number of active companies jumped over 10% annually to touch 1.89 million last month, which is the highest level.
The sector-wise classification revealed that companies engaged in community, personal & social services formed a major chunk of new registrations (27%) — a trend which has continued for the past several months. It was followed by companies engaged in trading (17%), manufacturing and business services (15%).
“The state-wise analysis of new registered companies shows that top three states that receive the highest number of new registrations were Maharashtra (17%), Uttar Pradesh (11%) and Delhi following closely behind at 9%,” the ministry of corporate affairs (MCA) bulletin said.
Though on a monthly basis, the new company registrations dropped 13% last month. The fall in May was recorded after the new registrations reached an all-time high number of 23,776 in April 2025.
Experts said that the improvement in overall business environment and lesser regulatory hurdles in the registration process have contributed to the robust growth in registrations in the first two months of FY26. As per MCA data, the registration for limited limited partnerships (LLPs) have outpaced all other types of registrations over the past year. For example, new LLPs registrations grew at 19.6% on-year as compared to 19.2% growth in one-person company category and a meagre 1.2% growth in the registration of foreign companies.
Meanwhile, the service sector continued to account for maximum LLP registrations in May followed by industry and agriculture sectors at 24% and 2%, respectively.
Further, private limited companies account for 96% of the total companies in the country but their total paid-up capital is just 38% whereas the public limited companies are smaller in number (4% in volume terms) but account for 62% of the total paid-up capital.
