More than 1.68 lakh companies registered in India in FY24
What's the story
India witnessed a significant surge in new business registrations during the financial year 2024, with over 1.68 lakh companies being established. The total paid-up capital for these companies reached Rs. 19,774 crore, marking a substantial increase from the previous year's Rs. 18,132.16 crore. February recorded the highest number of registrations for the year.
State-wise breakdown
Maharashtra leads in new company registrations
Maharashtra emerged as the leading state, accounting for 18% of all new companies registered in FY 2024. Uttar Pradesh and Delhi followed closely, contributing to 11% and 9% of registrations respectively. The business services sector dominated the landscape, comprising over 70% of the total new company registrations in February.
Public sector
State-owned companies among new registrations
Several state-owned companies were also registered in February, including ONGC Green, PFC Infra Finance IFSC, IRCTC Payments, Indbank Global Support Services, Jamnagar Transmission, and Bhadla III & Bikaner III Transmission. These details were confirmed by official data from the Ministry of Corporate Affairs. This highlights the government's continued role in fostering business growth.
Business landscape
Small businesses drive growth
The average paid-up capital for companies registered in FY 2024 is Rs. 11.72 lakh, indicating that small businesses are a significant driver of new registrations. The large informal sector also plays a crucial role in India's economy, with over 60 million unincorporated non-agriculture micro, small and medium enterprises accounting for over 11 million jobs.
Sector analysis
Sector-wise breakdown
In terms of sectors, more than a fourth of all companies registered in February are involved in community, personal, and social services. The trading and manufacturing sectors made up 16% and 15% of registrations respectively. The agriculture sector also experienced growth with the formation of 937 new companies during the same period.
Business closures
Company liquidation and removal from registry
Despite the surge in new registrations, not all companies remain active. As of the end of February, over 26,000 companies are in the process of being removed from the official registry for failing to file annual returns for two consecutive years. Additionally, 10,377 companies are currently under liquidation, primarily defunct entities.