New Delhi
The number of new companies registered in India jumped by 29% year-on-year in May 2025, signaling strong economic growth and rising business confidence. According to the Ministry of Corporate Affairs, 20,718 new companies were registered during the month, pushing the total number of companies in India to nearly 29 lakh (28,96,943) as of May 31.
Of these, 65% (18,90,305 companies) are currently active, showing a small increase from April. Most new companies were in community, personal, and social services (27%), followed by trading (17%), and manufacturing and business services (15% each).
State-wise, Maharashtra led with 3,458 new companies (17%), followed by Uttar Pradesh with 2,379 (11%) and Delhi with 1,858 (9%).
India also had 5,247 foreign companies registered as of May 2025, with 63% actively operating. From March to May 2025, 28 new overseas companies were registered. Karnataka attracted the highest share (21%), followed by Haryana and Maharashtra (18% each), Gujarat (14%), Uttar Pradesh (11%), Telangana (7%), and small shares in Madhya Pradesh, Delhi, and Tamil Nadu.
Most foreign companies (61%) focused on community and social services.
At the same time, HSBC’s latest data showed that private sector activity in India regained strong momentum in June. Business output rose faster in both manufacturing and services, and hiring surged to an 18-year high. New orders and international sales also increased significantly.
This surge in new company registrations and job growth reflects a positive economic climate, driven by strong domestic demand and investor confidence. It highlights India’s steady progress towards becoming a more business-friendly and vibrant economy ready for future expansion.