April sees march of new companies: Company, LLP registrations hit new high in April on investor optimism

New Delhi: In a buoyant start to the fiscal year, the registration of companies scaled a fresh peak in April and that of limited liability partnerships (LLPs) surged from a year before, reflecting robust investor optimism about the country's longer-term growth outlook.

The number of companies that got incorporated in April jumped by almost a half to 23,785 from a year earlier, showed the latest data compiled by the corporate affairs ministry.

With this, company registrations rose for a fourth straight month through April.


Similarly, 8,047 LLPs were registered in April, up 36.5% from a year before. The rate of the surge is partly aided by a favourable base effect. "The country's growth prospects continue to remain strong, and so do its macroeconomic fundamentals. Consumer sentiments have improved. These give investors the confidence to take advantage of the country's growth story," said a senior government official. Sustained push for ease of doing business and lower compliance burden for companies have helped, he added. The strong incorporations in recent months comes despite a continued crackdown on shell companies. As for LLPs, the surge in their incorporations reflects robust prospects of services trade, both internal and external, and the booming services economy, according to experts.

India is expected to remain the world's fastest-growing major economy over the next two years, with rates of expansion expected to touch 6.2% in 2025 and 6.3% in 2026, according to the IMF. The number of companies incorporated in 2024-25 had dropped 2.2% year-on-year to 181,147. But a record 68,669 LLPs got registered last fiscal, up 16.4% from the previous year.