Company registrations rise 8.3% in June, LLPs jump 18.4%

Fresh registrations of companies rose 8.3% in June from a year before and those of limited liability partnerships (LLPs) jumped 18.4%, as investors continued to bet on India's strong longer-term economic growth and consumption outlook.

As many as 16,654 companies, including overseas entities, were incorporated in June, against 15,375 a year earlier, showed the latest corporate affairs ministry data.

With this, company registrations rose for a sixth straight month through June. However, the pace of increase in incorporations in June eased from 29% in May and almost 50% in April, which were, of course, aided by a favourable base effect.

The data showed the number of companies that got incorporated in the June quarter jumped 29% from a year before to 61,141.

The number of new LLPs that got registered in June stood at 7,534, against 6,362 a year earlier. In the June quarter, 23,068 LLPs got registered, up over 30% from a year before.

Sustained government focus on reducing the compliance burden and making it easier for entrepreneurs to set up businesses, on top of strong economic growth prospects, have driven the company incorporations in recent years, officials have said.

The International Monetary Fund expects India to remain the world's fastest-growing major economy over the next two years, with rates of expansion forecast at 6.2% for FY26 and 6.3% for FY27, more than double the global averages.