Company registrations decline 21% in Sept, LLPs rise 8%

New company incorporations declined almost 21% in September from a year before, the third straight month of fall and the steepest so far in this financial year, showed the latest corporate affairs ministry data.

However, the registration of limited liability partnerships (LLPs) increased almost 8% year-on-year, maintaining an increase month after month except for the fall in May, the data showed.

Experts said company registrations may have already peaked, blaming an unfavourable base (such incorporations had hit a record in 2022-23) for the fall this fiscal.


However, robust services trade prospects, both domestic and global, over the medium term have kept LLP registrations high, they added.

The data showed that 11,109 companies, including foreign firms, were registered in India in September, the lowest so far in 2024-25, down from 13,996 a year earlier. Sequentially, the fall was an even sharper 24.4%.

A total of 88,130 companies were registered in the first half of this fiscal, down 5.6% from a year ago.

LLP numbers strong

As many as 34,021 LLPs got incorporations in the first half of this fiscal, up 23% from a year earlier.

The number of registrations had increased 16.3% for companies and 62.7% for LLPs in 2023-24, on the back of strong economic growth prospects and bullish stock markets, on top of measures such as easier incorporation rules.

A record 185,314 companies and 58,990 LLPs were incorporated during the fiscal.

Rise in KYC filings by directors

Almost 2.3 million KYC (know your customer) forms were filed by directors in the first half of this fiscal, up almost 12% year-on-year.

The ministry attributed the increase to "proactive measures towards ease of doing business and ease of living".