New business formation rose 22% in the first 10 months of 2026, with 3,22,131 companies and LLPs registered. LLP registrations led this growth, jumping 36.7% as many professionals chose their simpler structure. Meanwhile, the government’s new online systems helped, though more entities also used the strike-off process to close inactive businesses.
The rush to start and officially register businesses gathered pace in 2026, with 3,22,131 companies and limited liability partnerships (LLPs) registered in the first 10 months of the year. This was 57,230 more than in the same period last year. LLP registrations led the surge, jumping 36.7%, while company incorporations rose 16%.
According to the latest data from the Ministry of Corporate Affairs (MCA), 2,23,766 Indian companies were registered between January and October 2026, compared with 1,92,944 a year earlier. LLP registrations climbed from 71,882 to 98,288 during the same period. Foreign company registrations accounted for another 77 incorporations, compared with 75 a year ago.
Experts attribute the faster growth in LLPs partly to their simpler structure. They are generally easier to manage than companies and have fewer compliance requirements. This makes them attractive to professionals, consultants and smaller businesses.
The government has also taken steps to simplify business incorporation and reduce compliance requirements. These include the SPICe+ online incorporation system and higher thresholds for small companies, which bring more businesses under the category eligible for regulatory relaxations.
Technology, trade and property have attracted a large number of new businesses. MCA incorporation records for January to October show computer programming and consultancy among the leading activities, followed by wholesale trade, real estate and retail trade. Education, construction and food manufacturing also feature prominently.
The increase in new registrations has also been accompanied by a rise in companies and LLPs seeking closure through the strike-off process. The number of entities listed for strike-off rose to 26,845 in the first 10 months of 2026, from 21,601 in the same period last year. Company cases increased from 16,274 to 21,400, while LLP cases rose slightly from 5,327 to 5,445.
Experts said streamlined closure procedures could be encouraging inactive businesses to clear their records. The government set up the Centre for Processing Accelerated Corporate Exit (C-PACE) in 2023, which has reduced the average time for voluntary company closure from more than two years to less than two months. LLP closure applications were also brought under a centralised process in August 2024. The Corporate Laws (Amendment) Bill 2026, proposes further simplification of the voluntary strike-off process for companies to enable quicker closure.
Further, foreign company registrations remained almost unchanged at 77 in the first 10 months of 2026, compared with 75 a year earlier. Overseas businesses have different options for establishing a presence in India, including setting up subsidiaries, depending on their business plans, costs and sector-specific regulations.
Maharashtra remains the country's leading state for company registrations over the long term, followed by Delhi and West Bengal. Southern states, including Karnataka and Tamil Nadu, have also emerged as important centres for corporate activity.