Lok Sabha Question No. 3933 (UNSTARRED), answered on 2025-08-18
Subject: Surge in Registration of New Companies
Ministry: CORPORATE AFFAIRS
Asked by: Smt. Poonamben Hematbhai Maadam

## 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) (CPACE) was made operational w.e.f. 1.05.2023 under Section 242(2) of the Companies Act, 2013 for centralized and transparent processing of

the  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 eforms  filed  earlier  with  jurisdictional  ROCs  under  Companies  Act, 2013.

- *****

## Annexure I

| Sector-wise Classification of Newly Registered Companies in May 2025   | Sector-wise Classification of Newly Registered Companies in May 2025                              | 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 Services                                                           | 5,638                                                                  |
| 4.                                                                     | Construction                                                                                      | 1,390                                                                  |
| 5.                                                                     | Electricity, Gas and Water companies                                                              | 694                                                                    |
| 6.                                                                     | Finance                                                                                           | 524                                                                    |
| 7.                                                                     | Insurance                                                                                         | 4                                                                      |
| 8.                                                                     | Manufacturing (Food stuffs)                                                                       | 582                                                                    |
| 9.                                                                     | Manufacturing (Leather and products thereof)                                                      | 33                                                                     |
| 10.                                                                    | Manufacturing (Machinery and Equipments)                                                          | 842                                                                    |
| 11.                                                                    | Manufacturing (Metals and Chemicals, and products thereof)                                        | 939                                                                    |
| 12.                                                                    | Manufacturing (Others)                                                                            | 356                                                                    |
| 13.                                                                    | Manufacturing (Paper and Paper products, Publishing, printing and reproduction of recorded media) | 98                                                                     |
| 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 Communications                                                             | 1,205                                                                  |
|                                                                        | Total                                                                                             | 20,718                                                                 |