Company registrations surge 26% in October; LLP incorporations up 38% on GST cuts, growth optimism

New Delhi: Fresh registrations of companies jumped by 26% in October from a year before and those of limited liability partnerships by 38%, showed the latest corporate affairs ministry data.

Officials expect the elevated incorporations to continue in the coming months, given the growing optimism about consumption prospects in the wake of goods and services tax cuts in September and the country's strong medium-term economic growth outlook.

These seem to have outweighed immediate investor concerns about external headwinds, such as the extra US tariffs on Indian exports. The base effect, too, remains favourable this fiscal (there was a contraction in company registrations in 2024-25).

As many as 15,387 companies, including overseas entities, were incorporated in October, against 12,207 a year earlier, the data showed. LLP registrations surged to 6,176 in October, compared with 4,461 a year before.

Between April and October, new company registrations surged 37% from a year earlier to a record 137,393.

The number of foreign companies incorporated in India almost doubled to 56 in the first seven months of this fiscal from 29 a year earlier, the data showed.

Similarly, a record number of LLPs-51,461 in total-were registered between April and October, up almost 34% from the corresponding period last fiscal.

The goods and services tax (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 and beyond. Strong economic growth, sustained official focus on lowering the compliance burden and making it easier for businesses to set up units have led to the surge in company incorporations, officials have said. A trade deal with the US, negotiations for which are underway, would further lift the sentiments.

There has been a consistent increase in requests for advice on the incorporation of subsidiaries, LLPs and joint ventures, according to Paritosh Chauhan, partner at Lakshmikumaran & Sridharan Attorneys.