Company additions recorded a sharp acceleration in FY26, rising 36.7 per cent year-on-year to 2.47 lakh, according to the Ministry of Corporate Affairs. The jump marks the strongest annual growth in company additions in over a decade, indicating a strong formal business creation during the year.

“The increase in company additions in FY26 may reflect a combination of improving economic activity, continued digitalisation of incorporation processes, and growing preference for formal business structures,” said Karan Marwah, Partner and CFO Advisory Leader, Grant Thornton Bharat. “Easier access to technology, expanding entrepreneurial activity, and supportive business sentiment could also have contributed to higher registrations.”

Monthly trends of FY26 show that registrations peaked in December 2025, when 26,587 companies were added, the highest monthly figures. Additions remained elevated in the final quarter, with monthly registrations over 22,000. 

Lower closures

While additions surged, company strike-offs remained contained. FY26 recorded 16,749 strike-offs, down 7.09 per cent from FY25, marking the third consecutive annual decline. Monthly numbers were relatively moderate throughout the year, largely staying below 1,500 except for the early months.

Experts said the decline in strike-offs could be interpreted as a sign of greater business continuity, with more companies remaining on the register and continuing operations. It may also reflect a normalisation after earlier clean-up exercises, suggesting that multiple factors are influencing the trend.

Sector-wise data on net addition of active companies between April 2025 and January 2026 show services segments leading growth. Community, personal, and social services recorded a net addition of 51,971 companies, followed by trading (31,992) and manufacturing (26,809). Business services and construction also posted steady gains.

At the state level, Maharashtra led with a net addition of 30,539 active companies, followed by Uttar Pradesh (21,706). Delhi, Telangana, and Karnataka also featured among the top contributors.

“Higher net additions in Maharashtra and Uttar Pradesh may reflect the scale of their economies, population base, and breadth of business activity,” Marwah said, noting that diversified industrial ecosystems tend to support greater formal business formation.

Published on April 13, 2026