Company, LLP registrations continue to gain traction

Fresh registrations of companies rose for the seventh straight month in July and those of limited liability partnerships surged for five months in a row, signalling continued investor optimism about the country's economic growth and consumption prospects despite persistent external headwinds.

As many as 17,555 companies, including overseas entities, were incorporated in July, an 18% increase from 14,887 a year earlier, showed the latest corporate affairs ministry data. Similarly, the number of LLPs that got registered in July rose by a quarter to 7,343.

Between April and July, the number of companies that got incorporated jumped over 26% from a year before to 78,696, the data showed. During this period, 30,411 LLPs got registered, a 29% rise from a year before.


In July, the International Monetary Fund projected India's growth at 6.2% for FY26 and 6.3% for FY27, more than double the global averages. However, with the US announcing a 25% additional tariff on Indian imports along with an unspecified penalty, some economists are projecting India's growth to ease a tad.

Despite the uncertainties, India is still projected to retain its status as the world's fastest-growing major economy this fiscal year and the next, a fact that investors are likely to build into their calculations while planning fresh investments, a senior government official said.

Last month, India forged a free trade agreement with the UK, and it is currently negotiating trade deals with other key economies, including the EU, to consolidate its position in these markets.

An early trade deal with the US, with whom talks are continuing, could soften the tariff blow, analysts have said.

Sustained government focus on reducing the compliance burden and making it easier for entrepreneurs to set up businesses are also encouraging entrepreneurs, officials had said earlier. Strong services trade has supported the growth in LLP registrations in recent years, the officials said.

India's exports of services grew nearly 11% in the June quarter, beating a 2% increase in that of goods.