Company and LLP incorporations in India: what the official MCA data shows

How many companies and LLPs are incorporated in India each year?

The Ministry of Corporate Affairs (MCA) told the Lok Sabha on 18 December 2023 that 1,59,339 companies and 36,249 LLPs were incorporated in FY 2022-23, a combined 1,95,588 entities. In FY 2013-14 the figures were 94,081 companies and 7,982 LLPs. Company incorporations therefore rose about 69% in nine years, while LLP incorporations rose more than four-fold.

For FY 2023-24 the ministry reported 1,85,314 company incorporations, the highest in any financial year, along with 58,990 LLPs. That is a 16% rise in companies and a 63% rise in LLPs over FY 2022-23.

Was the FY 2023-24 surge visible early in the year?

Yes. The December 2023 Lok Sabha reply compared the first eight months of FY 2023-24 with the same period a year earlier. Between 1 April and 30 November 2023, 1,22,317 companies and 37,482 LLPs were incorporated, against 1,15,233 companies and 23,531 LLPs in April to November 2022. Company formation was up about 6%, while LLP formation was up about 59%.

By the end of November 2023, LLP incorporations for the year had already overtaken the full-year FY 2022-23 total of 36,249. That early momentum carried through to the record full-year figures reported in April 2024.

Why is LLP formation growing faster than companies?

Between the two three-year blocks reported to Parliament, company incorporations grew about 36% (3.56 lakh to 4.82 lakh) while LLP incorporations grew about 31% (92,870 to 1,21,486). The sharper LLP jump came after that: from 36,249 in FY 2022-23 to 58,990 in FY 2023-24.

The data does not record motives, but the usual drivers are well known to practitioners. LLPs carry lighter compliance (no mandatory audit below the ₹40 lakh turnover or ₹25 lakh contribution thresholds, two annual forms), no minimum capital and simpler internal governance. They suit professional firms, family businesses and asset-holding structures. Companies remain the default for anyone planning to raise equity, issue ESOPs or seek DPIIT recognition with investor backing.

How many companies are closing or being struck off?

Formation is only half the picture. In a written reply on 2 December 2025, the Minister of State for Corporate Affairs reported that 2,04,268 private companies ceased to exist between FY 2020-21 and FY 2024-25 through amalgamation, conversion, dissolution or strike-off. Of these, 1,85,350 were struck off.

Strike-offs peaked at 83,452 in FY 2022-23 during the ministry's drive against shell and non-filing companies, then fell to 21,181 in FY 2023-24 and 20,365 in FY 2024-25. The lesson for founders: a company that stops filing AOC-4 and MGT-7 can be struck off, and its directors can be disqualified under section 164(2) of the Companies Act, 2013.

How many foreign-owned companies are being set up?

A Lok Sabha answer on 3 August 2026 gives year-wise data on foreign participation. The number of Indian companies incorporated each year whose holding company is outside India rose from 1,829 in 2021-22 to 2,191 in 2025-26. Registrations of foreign companies under section 380 (branch, liaison or project offices) jumped to 102 in 2025-26 from 59 the year before.

As of 30 July 2026, 3,313 foreign companies were carrying on business in India and 19,881 Indian companies had a holding company incorporated abroad. Closures are significant too: 294 foreign-held Indian companies closed their place of business in 2025-26.

Closures of foreign companies' places of business in India ran at 104, 63, 68, 63 and 84 across 2021-22 to 2025-26, while closures among Indian companies with foreign holding companies were 300, 134, 242, 253 and 294. Some closures relate to entities set up in earlier years, so they can exceed a year's registrations.

What does a new company have to file every year?

Every company files financial statements in Form AOC-4 within 30 days of its AGM and an annual return in Form MGT-7 (MGT-7A for small companies and OPCs) within 60 days. Auditor appointments are reported in ADT-1. Directors file DIR-3 KYC once every three consecutive financial years by 30 June, following G.S.R. 943(E) of 31 December 2025, with an update within 30 days of changes to mobile, email or address.

Since G.S.R. 880(E) of 1 December 2025, a private company with paid-up capital up to ₹10 crore and turnover up to ₹100 crore qualifies as a small company, which brings lighter requirements such as the abridged annual return and fewer mandatory board meetings. LLPs file Form 11 by 30 May and Form 8 by 30 October.

A company that has stopped operating does not have to wait to be struck off. Once its filings are up to date and liabilities are cleared, it can apply to the Registrar for voluntary removal in Form STK-2, which is usually cheaper and cleaner than a Registrar-initiated strike-off with director disqualification risk.

Where can I find the latest monthly incorporation numbers?

MCA publishes a Monthly Information Bulletin on the Corporate Sector with month-end counts of registered, active and closed companies and LLPs. We could not retrieve an official consolidated total for FY 2024-25 or FY 2025-26 from MCA or PIB at the time of writing, so we have not quoted one. Private data aggregators publish monthly estimates from MCA filings, but their figures differ from one another and are not official.

For planning purposes the trend in the official series is clear: incorporations roughly doubled over a decade, LLPs grew fastest, and strike-offs settled at around 20,000 a year after the FY 2022-23 clean-up of non-filing companies.