Record no of companies, LLPs registered in March

India added a record number of companies and limited liability partnerships (LLPs) in March, a development officials attributed to renewed investor optimism about the country’s consumption and economic growth prospects over the medium-to-long term despite external headwinds including uncertain US tariff policies.

As many as 21,156 companies got registered in March, up 27% from a year earlier, showed the latest data compiled by the corporate affairs ministry. The March number was 45% higher than average incorporations in the previous 11 months of the financial year.

On a year-on-year basis, company incorporations had declined in eight of the 11 months till February, partly because of an unfavourable base and a slowdown in urban consumption earlier last fiscal. Going forward, strong investor optimism about the Indian economy and a favourable base effect are expected to drive the growth in company incorporations, said an official.

Meanwhile, a record 8,723 LLPs got registered in March, up 62% from a year earlier, having recovered from a fall in the previous month.

The incorporations had shot up 16.3% for companies and 62.7% for LLPs in 2023-24 to touch record levels.

The registrations normalised during 2024-25 and the high base particularly hit the growth in company incorporations, officials and experts had said earlier.

India is expected to remain the world’s fastest-growing major economy over the next two years till 2026-27, growing 6.5% in each of these years, according to the International Monetary Fund. The economic growth is projected to rebound to 7.6% in the March quarter.