Executive Summary:
In response to a parliamentary question, the Ministry of Corporate Affairs reported a 28.80% increase in new company registrations in May 2025 compared to May 2024, with 20,718 companies registered. As of June 30, 2025, there are 1,905,469 active companies in the country. The Ministry has taken several steps to improve the ease of doing business, including allowing direct listing of securities in foreign jurisdictions and streamlining various corporate processes.
Key Points / Main Content:
* **Company Registration Statistics:**
* May 2024: 16,085 companies registered.
* May 2025: 20,718 companies registered (28.80% increase).
* Total active companies as of June 30, 2025: 1,905,469.
* **Sector-wise Classification (May 2025):**
* Business Services: 3,123
* Community, Personal, and Social Services: 5,638
* Trading: 3,451
* Agriculture and Allied Activities: 532
* Construction: 1,390
* Electricity, Gas, and Water companies: 694
* Finance: 524
* Insurance: 4
* Manufacturing Machinery and Equipments: 842
* Manufacturing Metals and Chemicals, and products thereof: 939
* Transport, storage and Communications: 1,205
* Other Sectors: various counts (see Annexure I for full details).
* **Ease of Doing Business Initiatives:**
* Direct listing of securities by Indian public companies in permissible foreign jurisdictions allowed (effective 24.01.2024).
* Amendment to Companies Appointment and Qualification of Directors Rules, 2014 (effective 01.08.2024) allows updating of personal contact information in KYC database.
* Amendment to Companies Adjudication of Penalties Rules, 2014 (effective 16.09.2024) introduces faceless adjudication mechanism.
* Amendment to Companies Compromises, Arrangements and Amalgamations Rules, 2016 (effective 17.09.2024) delegates approval of mergers between foreign holding companies and Indian wholly-owned subsidiaries to Regional Directors.
* CPACE operational for centralized processing of voluntary company closures and striking off of LLPs (effective 05.08.2024 for LLPs).
* Central Processing Centre (CPC) operational for faster handling of e-forms (effective 16.02.2024).
Impact Analysis:
* **Indian Public Companies:**
* *Impact:* Can now directly list securities in permissible foreign jurisdictions, potentially increasing access to capital and enhancing brand visibility.
* *Action Required:* Evaluate opportunities for foreign listing and comply with the Companies Listing of equity shares in permissible jurisdictions Rules, 2024.
* **Directors and Key Managerial Personnel:**
* *Impact:* Easier to attend adjudication proceedings via online VC and can update contact information in KYC database.
* *Action Required:* Utilize the online VC option for adjudication proceedings and ensure KYC information is up-to-date.
* **Companies undergoing mergers:**
* *Impact:* Mergers of foreign holding companies with Indian wholly-owned subsidiaries now require approval from Regional Directors instead of NCLT, streamlining the process.
* *Action Required:* Comply with the amended Companies Compromises, Arrangements and Amalgamations Rules, 2016, and seek approval from Regional Directors for applicable mergers.
* **Companies seeking voluntary closure:**
* *Impact:* Centralized and transparent processing through CPACE for voluntary closures.
* *Action Required:* Utilize CPACE for processing matters related to voluntary closure.
* **Limited Liability Partnerships (LLPs):**
* *Impact:* Striking off of LLPs are now processed centrally by CPACE.
* *Action Required:* Utilize CPACE for processing eForms related to striking off of LLPs.
Key Entities Referenced
Companies Compromises, Arrangements and Amalgamations Rules, 2016: Rules amended on 09.09.2024 regarding compromises, arrangements, and amalgamations of companies, including mergers of foreign holding companies with Indian subsidiaries.
CPACE Centre for Processing Accelerated Corporate Exit: A center operationalized w.e.f. 1.05.2023 under Section 2422 of the Companies Act, 2013 for centralized processing of voluntary closure of companies and striking off of Limited Liability Partnerships LLPs.
Ministry of Corporate Affairs: The Indian government ministry responsible for regulating corporate affairs.
SHRI HARSH MALHOTRA: Minister of State in the Ministry of Corporate Affairs and Minister of State in the Ministry of Road Transport and Highways.
Companies Act, 2013: An Act of the Parliament of India that regulates Indian companies.
Companies Listing of equity shares in permissible jurisdictions Rules, 2024: Rules notified on 24.01.2024 pertaining to the direct listing of securities by Indian public companies in permissible foreign jurisdictions.
Companies Appointment and Qualification of Directors Rules, 2014: Rules amended on 16.07.2024 regarding the appointment and qualifications of company directors.
Companies Adjudication of Penalties Rules, 2014: Rules amended on 05.08.2024 to transition to a faceless adjudication mechanism for corporate default cases.
Government of India
Ministry of Corporate Affairs
LOK SABHA
UN-STARRED QUESTION NO. 3933
ANSWERED ON MONDAY, AUGUST 18, 2025
Surge in Registration of New Companies
QUESTION
3933. Smt. Poonamben Hematbhai Maadan:
Will the Minister of CORPORATE AFFAIRS be pleased to state:
(a) Whether the Government has recorded a 29 per cent increase in
registration of new companies in May 2025;
(b) if so, the details thereof and the total number of active
companies in the country;
(c) the details of sector-wise classification of the above newly
registered companies;
(d) whether the surge in registration is due to an improved business
environment and reduced regulatory hurdles; and
(e) if so, the details thereof?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND
MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND
HIGHWAYS.
[SHRI HARSH MALHOTRA]
a) & b) The number of companies registered in May 2024 was 16,085
while in May 2025 was 20,718 thus, there is year on year increase of
28.80% in incorporation of companies. Further, there are 19,05,469
active companies as on 30.06.2025.c) The sector-wise classification of newly registered companies in
May 2025 is at Annexure I.
d) & e). The Ministry of Corporate Affairs has taken a number of steps
to ensure ease of doing business. The important steps are as under:
i. Direct listing of securities by Indian public companies in permissible
foreign jurisdictions has been allowed. This would boost "Brand India”,
increase attractiveness to growing technology sector, stimulate
efficiency & growth, provide alternative source of capital and broaden
investor base. The Companies (Listing of equity shares in permissible
jurisdictions) Rules, 2024 were notified on 24.01.2024.
ii. The Ministry has carried out an amendment in the Companies
(Appointment and Qualification of Directors) Rules, 2014 on
16.07.2024 (effective from 01.08.2024) to address the suggestions of
stakeholders for allowing additional opportunities to update their
personal mobile number/email address in the KYC database.
iii. An amendment was made to the Companies (Adjudication of
Penalties) Rules, 2014 on 05.08.2024 (effective from 16.09.2024) to
transition to a faceless adjudication mechanism to eliminate physical
hearings for corporate default cases. This process has made it easier
for Directors and Key Managerial Persons to attend the adjudication
proceedings by introducing adjudication through online VC.
iv. An amendment has been made in the Companies (Compromises,
Arrangements and Amalgamations) Rules, 2016 on 09.09.2024
(effective from 17.09.2024). Pursuant to this amendment, merger of a
holding company incorporated abroad with its wholly owned
subsidiary incorporated in India would require approval of Central
Government (delegated to Regional Directors). Prior to this
amendment, such mergers required approval of the National Company
Law Tribunal (NCLT).
v. The C-PACE (Centre for Processing Accelerated Corporate Exit) (C-
PACE) was made operational w.e.f. 1.05.2023 under Section 242(2) of
the Companies Act, 2013 for centralized and transparent processing ofthe matters related to voluntary closure of the companies. Vide
notification No G.S.R. 475(E) dated 5th August 2024 the Ministry
centralized the striking off of Limited Liability Partnerships (LLPs) by
empowering the C-PACE for processing of e-Forms related to striking
off of LLPs as well.
vi. The Central Processing Centre (CPC) was operationalized w.e.f
16.02.2024 for faster and centralized handling of various electronic e-
forms filed earlier with jurisdictional ROCs under Companies Act,
2013.
*****Annexure I
Sector-wise Classification of Newly Registered Companies in May
2025
Sl. No. Sector/Economic Activity No. of Companies
1. Agriculture and Allied Activities 532
2. Business Services 3,123
3. Community, personal and Social 5,638
Services
4. Construction 1,390
5. Electricity, Gas and Water 694
companies
6. Finance 524
7. Insurance 4
8. Manufacturing (Food stuffs) 582
9. Manufacturing (Leather and 33
products thereof)
10. Manufacturing (Machinery and 842
Equipments)
11. Manufacturing (Metals and 939
Chemicals, and products thereof)
12. Manufacturing (Others) 356
13. Manufacturing (Paper and Paper 98
products, Publishing, printing and
reproduction of recorded media)
14. Manufacturing (Textiles) 272
15. Manufacturing (Wood Products) 40
16. Mining and Quarrying 91
17. Real Estate and Renting 904
18. Trading 3,451
19. Transport, storage and 1,205
Communications
Total 20,718