September Witnessed Decline Of 21% In Company Registrations, 8% Rise In LLP

September saw a noticeable decrease in the number of new company registrations in India, but limited liability partnerships (LLPs) continued to climb steadily.

For the third consecutive month, new firm incorporations have dropped by 21% year-over-year, marking the largest decline of the current fiscal year. Only 11,109 firms were registered, compared to 13,996 during the same period last year. In contrast, LLP registrations surged by 23% in the first half of the fiscal year, reaching 34,021, driven by an 8% increase. Experts attribute the rise in LLP registrations to favourable prospects in both domestic and international service trade, while the decline in firm incorporations is linked to a high base effect from the previous year. Additionally, there was a 12% increase in Director Know Your Customer (KYC) filings, reflecting ongoing efforts to enhance the business environment.