Company Registrations Drop by 22% in October Amid Slowing Urban Demand

New company registrations declined by 21.8% in October, with only 12,207 incorporations, marking the fourth consecutive monthly decline. Limited Liability Partnerships (LLP) registrations also fell for the first time in five months by 12.4% year on year (YoY), reversing a previously robust growth trend.

Analysts attribute this to weakening urban demand and a shift from last year’s outstanding growth rates. On a month-on-month basis, company incorporations increased 9.9% over September, while LLP registrations decreased 5.1%.

Despite October’s dip, LLP registrations are still 17.5% more than last year for the fiscal year to date. According to the finance ministry’s most recent analysis, softer consumer confidence and seasonal variables have contributed to slowing urban demand.