NEW DELHI: Even as over 17,600 companies shut down this financial year, new business registrations have surged past 1.38 lakh, signaling resilience in India’s corporate landscape. The latest data, presented by Minister of State for Corporate Affairs (MCA), Harsh Malhotra, in the Rajya Sabha, highlights a dynamic churn in the business ecosystem.
Between April 2024 and January 26, 2025, a total of 17,654 companies ceased operations due to amalgamation, conversion into LLPs, liquidation, or official striking-off.
In contrast, 1,38,027 fresh registrations were recorded during the same period, reflecting continued entrepreneurial momentum despite market challenges.
Comparatively, 22,044 companies shut down in 2023-24, while the number was significantly higher at 84,801 in 2022-23.
New incorporations surge
On the other hand, company incorporations stood at 1,85,318 in 2023-24 and 1,59,302 in 2022-23, indicating a fluctuating but generally robust trend in new business formations.
The data was disclosed in response to a query by YSRCP Rajya Sabha member Parimal Nathwani. Minister Malhotra also highlighted key government measures to enhance the ease of doing business, including the decriminalisation of 63 offences under the Companies and LLP Acts.
With regulatory reforms and a business-friendly approach, India continues to attract new ventures despite periodic closures, reinforcing its position as a dynamic hub for entrepreneurship and investment
