The number of new companies registered in India surged by 29 per cent year-on-year in May this year
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NEW DELHI — The number of new companies registered in India surged by 29 per cent year-on-year in May this year to 20,718, reflecting the acceleration in economic activity, according to the latest monthly bulletin released on Monday by the Ministry of Corporate Affairs.
The total number of registered companies in the country as on May 31, 2025, has now gone up to 28,96,943, of which 65 per cent (18,90,305) are active. There is an increase of 0.2 per cent in the total proportion of active companies when compared to April 2025, according to the Ministry.
The economic-activity wise classification of new companies registered reveals that the predominant share of companies is in community, personal and social services (27 per cent) followed by trading (17 per cent) while manufacturing and business services account for 15 per cent each.
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A state-wise analysis of new registered companies shows that the top three states that received the highest number of new registrations during May 2025 were Maharashtra with 17 per cent which amounts to 3,458 corporates, Uttar Pradesh with 11 per cent at 2,379 and Delhi following closely behind at nine per cent accounted by 1,858 companies.
As on May 31, 2025, there were also a total of 5,247 foreign companies registered in India.
Out of these, 63 per cent (3,293) were active. Of the 28 new overseas business entities that were registered with the Ministry of Corporate Affairs during March 2025 to May 2025, 21 per cent were in Karnataka, 18 per cent were registered in Haryana and Maharashtra, 14 per cent were registered in Gujarat, 11 per cent in Uttar Pradesh, seven per cent in Telangana and four per cent each in Madhya Pradesh, Delhi and Tamil Nadu.
When looking at the economic activity classification, it was revealed that 61 per cent of the companies can be classified as 'community, personal and social services'.
Meanwhile, HSBC's flash Purchasing Managers' Index data showed that output growth across India's private sector regained growth in June, with business activity increasing at quicker rates among manufacturing companies and services firms while hiring of workers shot up to an 18-year high.
There was also a substantial upturn in aggregate employment amid robust expansions in total new orders intakes and international sales, according to the data.