The registration of new companies in May 2025 rose by 29 per cent year-on-year, reaching 20,718, according to the latest data released by the Ministry of Corporate Affairs (MCA). This significant increase points to sustained economic momentum since the beginning of the current financial year.
The number of active companies also saw a healthy annual rise of over 10 per cent , hitting a record 1.89 million, marking the highest level recorded so far.
A sector-wise breakdown revealed that community, personal, and social services accounted for the largest share of new company registrations at 27 per cent, a trend that has held steady for several months. This was followed by companies in trading (17%), manufacturing, and business services (15%).
According to the MCA bulletin, a state-wise analysis showed that Maharashtra led in new company registrations, contributing 17%, followed by Uttar Pradesh (11%) and Delhi (9%).
However, on a month-on-month basis, new registrations saw a 13 per cent decline in May, following a record-high of 23,776 new companies registered in April 2025.
Meanwhile, in terms of Limited Liability Partnerships (LLPs), the services sector continued to dominate new registrations, followed by the industrial sector (24%) and agriculture (2%).
