India’s business world is still growing, with over 28 lakh firms listed there. Yet, just 65 per cent or about 18.1 lakh are functional, based on the latest available statistics from the Ministry of Corporate Affairs. This represents a slight growth of 0.14 per cent in functioning companies as of December 2024.
Increasing Registrations and Business Trends
In January 2025 alone, 16,781 new companies were incorporated with a paid-up capital of Rs 816.14 crore. While active companies are still on the increase, more than 9.49 lakh companies have been wound up over time.
Sector-wise, business services lead with 27 per cent of active firms, followed by manufacturing at 20 per cent. Trading, community, personal, and social services account for 13 per cent of each of the total active corporate players.
Maharashtra, Delhi, and Uttar Pradesh at the Forefront
Geographically, Maharashtra leads the pack of active companies, followed by Delhi, Uttar Pradesh, and West Bengal. Notably, Maharashtra, Uttar Pradesh, and Delhi had a greater number of active companies than in December 2024. In Union Territories, Jammu and Kashmir showed an impressive rise with 112 active companies being added in a single month.
India continues to be a preferred destination for overseas companies, with 5,216 foreign companies registered as per the Companies Act, 2013. Out of these, 63 per cent (3,281 entities) were operational as on January 31, 2025.
From November 2024 to January 2025, 16 new foreign businesses were set up in India, and Delhi received the maximum percentage, 37.50 per cent. Kerala received 18.75 per cent, and Tamil Nadu, Andhra Pradesh, Haryana, Karnataka, Maharashtra, and Telangana received a minimum percentage of the new entrants.
A Growing Corporate Ecosystem
India’s commercial sector is strong despite challenges. With ongoing business operations growth, increased foreign investments, and strong sectoral growth, the nation’s economic situation continues to shift, giving enterprises and investors an encouraging future too.
Read Also: Company registrations soar, 1,12,962 registered in FY 2024-25
