India observed a sharp rise in a new bussiness formation in October, signalling renewed investor confidence and robust economic activity. As per the latest data from the MCA, fresh company incorporation jumped 26% year-on-year, while LLP incorporations increased 38%.
In October 2025 total of 15,387 companies -including overseas entities -were registered, compared to 12,207 in the same month last year. Likewise, October saw the registration of 6,176 LLPs, up from 4,461 in the same month last year.
Unprecedented Growth in Company Registrations in FY 2025-26
From April to October 2025, the number of new company incorporations surged by 37% year-on-year, reaching a record high of 137,393. LLP registrations also saw significant growth, rising nearly 34% to 51,461 during the same period. Meanwhile, the registration of foreign companies in India nearly doubled to 56, up from 29 last year, highlighting the country’s increasing attractiveness to global investors.
GST Relief and strong Consumption Drive Growth
The recent rise in economic activity is being linked to multiple factors, including the GST rate reductions announced in September, stronger consumer spending, and India’s positive medium-term growth outlook. The GST measures, effective from September 22, have already sparked higher demand for automobiles, two-wheelers, and electronic goods, particularly during the Navaratri festival period.
An official noted that lower taxes and a more straightforward compliance system are encouraging entrepreneurs to embark on new ventures, while continued policy stability and reforms aimed at improving ease of doing business are further supporting fresh company incorporations.
Advantageous baseline and global market opportunities
The current expansion is further supported by a favourable baseline, following a contraction in company incorporation during FY-2024-25. In spite of external challenges -such as new US tariffs on Indian exports-investor sentiment remains robust. Experts believe that ongoing India-US trade deal negotiations could further enhance business confidence and cross-border investment.
Rise in Foreign and Domestic Investor Interest
The legal and tax experts have reported a consistent rise in advisory requests for the incorporation of subsidiaries, LLPs, and Joint ventures. The government’s ongoing efforts to streamline compliance, improve ease of doing business, and promote digital filings have positioned India as one of the most attractive destinations for both domestic and
international investors.
As said by the senior official, ” The data clearly reflects India’s entrepreeneurial momentum,” The GST cuts, along with macroeconomic stability, are translating into real business expansion.
Conclusion
India’s sharp rise in company and LLP registrations underscores renewed investor confidence and strong economic recovery. The GST cuts and simplified compliance have encouraged entrepreneurship and business expansion. Favourable policies and steady reforms continue to strengthen India’s startup ecosystem. With rising domestic and foreign participation, India is firmly positioned for sustained growth ahead.
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