Record run for Co, LLP floats in FY26 despite a bump in March

New Delhi: India saw a record number of company and limited liability partnership (LLP) registrations in FY26, though growth in the final month was the slowest amid uncertainty over the West Asia conflict, which dampened investor sentiment, a senior official said.

Registration of companies rose to 247,658, up by 37% from 2024-25, while that of LLPs shot up by 40% to 86,476, according to latest data from the corporate affairs ministry. This growth, however, tapered in March, with company incorporations showing only 6% increase to 22,320, while LLP registrations were 9% higher at 9,489.
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Data showed that the number of foreign companies incorporated in India jumped to 96 in 2025-26 from just 57 in the previous year .

The war in West Asia has pushed up global energy prices and disrupted supply chains, posing risks to economic growth worldwide, including in India, a major energy importer.

India's chief economic adviser V Anantha Nageswaran last month warned of downside risks to the country's projected growth rate of 7-7.4% for 2026-27 if the war drags on. He cautioned that the conflict could increase prices and put pressure on both government finances and the country's external economic position.
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Nageswaran, however, said that India's relatively robust macroeconomic fundamentals and sustained policy efforts provide resilience.

India has been the world's fastest-expanding major economy since 2021-22, and before the Iran war, it was expected to retain this status for at least two more years. It's estimated to have grown 7.6% in 2025-26.

The robust growth prospects, on top of structural reforms and steps by the government to ensure greater ease of doing business, drew investors and new entrepreneurs in large numbers, pushing up incorporations of companies and LLPs, according to experts.

The US and Israel launched joint strikes on Iran on February 28, prompting retaliatory attacks by Tehran on key American allies in the region and disruptions in global energy supplies, especially after the Islamic republic choked the Strait of Hormuz that accounts for a fifth of global oil trade.

FY27 outlook

According to the officials cited earlier, registration of companies and LLPs may rise in 2026-27, albeit at a muted pace, unless the conflict stretches beyond the June quarter forcing investors to pause their plans.

Also, given the record incorporations in 2025-26, the base effect remains unfavourable, he said. "Still, we can be cautiously optimistic."