LLP and company registrations hit a record high in FY24

In January, India saw a significant increase in the number of new companies being formed compared to the previous year. The number of newly registered limited liability partnerships (LLPs) has also more than doubled. This trend contributes to the already high number of such entities formed this fiscal year. Government officials attribute this surge in company registrations to optimism about India’s long-term economic growth and efforts to make business compliance easier. Data from the Ministry of Corporate Affairs shows that 14,333 companies were formed in January, up from 12,167 the previous year. Similarly, 5,276 LLPs were registered in January, compared to 2,620 the year before.

The total number of companies registered this fiscal year has surpassed 150,000 for the first time, reaching 151,442 by January. The number of LLPs stands at 47,800 and is expected to exceed 50,000 by February. This increase in registrations comes despite technical issues with the MCA21 portal and ongoing efforts to combat shell companies. The growth in LLPs is also attributed to the strong prospects for service exports, which have remained steady despite a slowdown in goods shipments globally.

According to the statistics ministry’s initial estimate, India’s growth rate for FY24 is anticipated to be 7.3%, marking three consecutive years of growth exceeding 7% despite global challenges. The Reserve Bank of India forecasts 7% economic growth for FY25.