Company, LLP registrations scale fresh peaks in H1

India saw registration of a record number of companies as well as limited liability partnerships (LLPs) in the first half of this financial year, reflecting investor optimism about the country's long-term economic resilience despite immediate concerns about the US tariffs, officials said.

It comes amid increasing legal queries from entrepreneurs about incorporations and government schemes that promote manufacturing, indicating that the momentum may continue in the coming months, according to experts.

As many as 122,006 companies, including overseas entities, got incorporated between April and September, up more than 38% from a year earlier, showed the latest corporate affairs ministry data.

The number of foreign companies getting incorporated in India more than doubled to 51 in the first half of this fiscal from 25 a year earlier, the data showed.

LLP registrations surged 33% to 45,285 during this period.

GST boost in September

In September alone, the number of companies that got registered more than doubled from a year before to 23,122. Sequentially, the figure increased 15% from the August level.

Similarly, 7,935 LLPs were floated last month, up almost 69% from a year before and 14% month-on-month.

Last month's registrations may have also been aided by the goods and services tax (GST) cuts and the rationalisation of the indirect tax regime, an official said. A conducive base effect also weighed on the surge.

The GST relief, made effective from September 22, would boost consumption and encourage investors to set up units, experts have said. Already, the GST cuts have been credited with sparking strong sales of cars, motorcycles and consumer electronics during the Navaratri.

Strong economic growth, sustained government focus on reducing the compliance burden and making it easier for businesses to set up units have helped company incorporations, officials had said earlier. Robust services trade has supported the growth in LLP registrations in recent years, they said.

The Reserve Bank of India last week raised its 2025-26 India growth forecast to 6.8% from 6.5% despite tariff concerns. Various global agencies expect India to remain the world's fastest-growing major economy at least for the next two years.

A trade deal with the US, negotiations for which are underway, would further lift the sentiments.

"We have seen a consistent increase in entrepreneurs' requests for advice on incorporation of subsidiaries, LLPs and joint ventures, and on legal or regulatory compliances," said Paritosh Chauhan, partner at Lakshmikumaran & Sridharan Attorneys.

He said queries on policy initiatives-such as production-linked incentive schemes and Atmanirbhar Bharat-and on information technology, IT-enabled services, global capability centres and single-window clearances have also increased.

Investors are also seeking expert advice on the recent changes in foreign direct investment rules, as well as on employment and environment laws, Chauhan said.