India sees registration of 1.85 lakh companies in FY24, most in services sector; here are the key numbers

In the fiscal year 2023-24 (FY24), India witnessed the registration of 1.85 lakh new companies, as per the data shared by the Union corporate affairs ministry. In the month of March alone, 16,600 companies were set up, the official data released on May 6 showed.

The number of new companies incorporated during FY24 is 15% higher as compared to 1.59 lakh companies registered in FY23.

Another key metric shared by the ministry showed that the companies in FY24 were set up with a cumulative paid up capital of ₹30,927.4 crore, as against ₹18,132.16 crore in FY23.

Here’s a look at some of the key numbers from the corporate affairs ministry’s data:

64% companies active

At the end of March 2024, the country had a total number of 26.63 lakh companies and out of them, 16.91 lakh companies or 64% were active.

As many as 9.31 lakh registered companies were closed, 2,470 were dormant entities and 10,385 companies were under liquidation.

A total of 27,022 companies were under the process of being struck off from official records.

Services sector dominates

Out of the new companies set up in FY24, 71% were in the services sector, followed by 23% in the industrial segment and 6% in agriculture.

"Broader economic activity-wise classification reveals that community, personal and social services observed the highest rise of 11% in the service sector as compared with FY 2022-23," it said.

Maharashtra still the business magnate

In terms of states, 17.6% of the new companies were set up in Maharashtra in 2023-24.

"There is an increase of 0.10% in the total proportion of active companies with respect to registered companies when compared to February 2024," the bulletin said.

As on March 31, 2024, there were a total of 5,164 foreign companies registered in the country and out of them, 3,288 companies or 64% were active.

Demographic details

In March, the bulletin said 42,041 Director Identification Numbers were registered.

"Out of the total number of directors registered in India in March 2024, 67% were male and the remaining 33% were female... 43% of newly registered directors belong to the age group of 31-45 years.

"Furthermore, 7% of the new director registrations were older than 60 years," the bulletin said.