India just hit 2 million active companies—here's why that matters
India's business scene hit a new high in December 2025, crossing 20 lakh (2 million) active companies for the first time.
That's up from 15 lakh just three years ago—a sign of how fast businesses are becoming more official and bouncing back after COVID-19.
It's a big moment for India's economy and shows real progress in making business more transparent.
New companies are popping up everywhere
2025 saw over 2 lakh new companies start up, with December alone more than doubling last year's numbers.
Hardly any shut down by choice—just about a thousand—so most are sticking around.
The count only includes active businesses, not those closing or winding down.
Government moves and startup energy fuel the boom
Since GST was rolled out in 2017, business formalization has sped up.
The government is also shutting down inactive or fake companies to keep things clean.