Over 28 Lakh Companies Registered in India, But Only 65% Remain Active: Govt Data

India has more than 28 lakh registered companies, but only 65%—a little over 18.1 lakh—are currently active, according to the latest data from theMinist ry of Corporate Affairs. The figures, released in the ministry’s monthly bulletin, highlight a slight increase of 0.14% in the proportion of active companies compared to December 2024.

The data also reveals that over 9.49 lakh companies have been shut down, pointing to the challenges businesses face in sustaining operations.

Foreign Companies and New Registrations

Among the registered firms, only 5,216 are foreign companies, with 63% (3,281) active as of January 31, 2025. Notably, 16 new overseas business entities were registered in India between November 2024 and January 2025, with Delhi leading the list (37.5%), followed by Kerala (18.75%) and Tamil Nadu (12.5%).

Meanwhile, in January alone, 16,781 new companies were registered with a combined paid-up capital of ₹816.14 crore, reflecting continued interest in India’s corporate sector.

Where Are India’s Active Companies?

The highest number of active companies are based in Maharashtra, followed by Delhi, Uttar Pradesh, and West Bengal. Maharashtra, Uttar Pradesh, and Delhi also saw an uptick in active firms compared to the previous month. Among Union Territories, Jammu and Kashmir recorded a rise of 112 active companies.

Which Sectors Dominate?

The business services sector leads with 27% of all active companies, followed by manufacturing (20%), and trading, community, personal, and social services (13%).

With steady growth in new registrations and a rising number of active firms, India’s corporate landscape remains dynamic. However, the high number of shuttered businesses raises concerns about sustainability in an evolving economic environment.

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