Active firms surge by 1.62 lakh in FY25; industry draws most capital despite fewer sign-ups

Maharashtra continues to be the commercial heart of India, boasting the highest number of active companies.

The number of active companies in India saw an increase of over 162,800 in FY25, primarily driven by the industrial and services sectors, according to data from the Ministry of Corporate Affairs.

New business registrations surged, largely thanks to the services sector, which accounted for around two-thirds of all registrations during the April to February period of FY25. However, it was the industrial sector—encompassing areas like manufacturing, textiles, mining and quarrying, and metals and chemicals—that played a crucial role in drawing significant investments. Despite this, the industrial sector represented only about a quarter of all new business registrations, as per the ministry's data.

While the total number of companies established in FY25 is available, details regarding sector-specific registrations and the paid-up capital—funds received by companies from shareholders—are only accessible for the April to February segment of FY25.

During this timeframe, 141,675 companies were registered, attracting nearly ₹3.36 trillion in paid-up capital. While the services sector made up the majority of registrations, it garnered just ₹90,522 crore in paid-up capital. In comparison, the industrial sector, despite representing only a fourth of the registrations, accounted for over 82% of the paid-up capital during this period.

The agricultural sector, with 4,670 registered companies, received ₹4,041 crore in paid-up capital during the same timeframe.

Despite this steady growth, a consistent number of companies are exiting the market. It’s important to note that registered companies form just a small part of the wider entrepreneurial landscape, with a significant portion of economic activities occurring in the informal or unincorporated sector. As of March 2025, there were approximately 1.85 million active companies in the country versus over 73.4 million unincorporated enterprises, as reported in a survey by the statistics ministry in December.

Maharashtra continues to be the commercial heart of India, boasting the highest number of active companies, followed by Delhi, Uttar Pradesh, and West Bengal. Currently, over 26,000 companies that are classified as inactive are undergoing removal from the official registry. These companies face deletion if they fail to file their annual returns for two consecutive years unless they obtain a dormant status during their inactivity.

Thus far, the government has struck off 874,228 companies from the registry for not submitting annual returns in the required timeframe. This indicates that roughly one in every three established companies has been removed from official records. Companies often neglect to file their annual returns if they encounter failures or never commence operations due to various economic challenges.

(With agnecy inputs)