Startup momentum strong as new company registrations rise 37%
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New Delhi: The registration of new companies jumped by 37 per cent to 24,136 in February this year compared to the same month of the previous year, reflecting strong business sentiment and increasing formalisation of the Indian economy driven by the government’s digital push.
Registrations also rose on a sequential basis from 23,280 in January, accelerating further in February. February marked the second-highest number of incorporations in the current financial year.
The services sector dominated new registrations, particularly IT services, consultancies and professional services. Nearly 300 AI-related businesses are being set up on average every month. In February alone, 248 AI-focused companies were formed, underlining the rapid growth of the startup ecosystem in the country.
Most of the newly registered entities are closely held, private limited companies. The average paid-up capital of companies formed in January stood at Rs 600,000, indicating that entrepreneurship continues to be driven largely by small businesses.
