Introduction
India’s company incorporation landscape witnessed a broad-based expansion between 2024 and 2025, reflecting renewed entrepreneurial confidence and improving ease of doing business across states and Union Territories. While large industrial states continued to add the highest absolute number of companies, several smaller states and UTs emerged as high-growth regions, signalling a widening geographic spread of formal business creation.
Overall, the data highlights a clear shift: incorporation activity is no longer concentrated only in traditional metros. Southern, western, and select eastern states showed strong momentum, while a few North-Eastern states saw moderation or contraction, pointing to uneven regional recovery.
Data Table: State & UT-wise Company Incorporations
| State / UT | 2024 | 2025 | YoY Growth (%) |
|---|---|---|---|
| Lakshadweep | 12 | 22 | 83% |
| Andhra Pradesh | 4,671 | 7,288 | 56% |
| Rajasthan | 9,258 | 13,730 | 48% |
| Kerala | 9,768 | 14,347 | 47% |
| Jharkhand | 2,287 | 3,318 | 45% |
| Dadra & Nagar Haveli and Daman & Diu | 83 | 120 | 45% |
| Odisha | 3,392 | 4,809 | 42% |
| Madhya Pradesh | 6,451 | 9,007 | 40% |
| Bihar | 6,532 | 9,059 | 39% |
| Sikkim | 8 | 11 | 38% |
| Telangana | 15,644 | 21,481 | 37% |
| Haryana | 11,938 | 16,293 | 36% |
| Gujarat | 16,489 | 22,345 | 36% |
| Uttar Pradesh | 23,540 | 31,820 | 35% |
| Chhattisgarh | 1,935 | 2,596 | 34% |
| Tamil Nadu | 14,821 | 19,560 | 32% |
| Puducherry | 225 | 296 | 32% |
| Uttarakhand | 2,199 | 2,879 | 31% |
| Punjab | 3,680 | 4,784 | 30% |
| Karnataka | 18,623 | 23,832 | 28% |
| Himachal Pradesh | 895 | 1,145 | 28% |
| West Bengal | 11,668 | 14,765 | 27% |
| Delhi | 21,181 | 26,769 | 26% |
| Andaman & Nicobar Islands | 61 | 77 | 26% |
| Jammu & Kashmir | 1,506 | 1,827 | 21% |
| Chandigarh | 767 | 891 | 16% |
| Goa | 1,092 | 1,223 | 12% |
| Maharashtra | 47,007 | 51,958 | 11% |
| Assam | 2,125 | 2,144 | 1% |
| Meghalaya | 111 | 90 | -19% |
| Tripura | 179 | 127 | -29% |
| Mizoram | 72 | 51 | -29% |
| Manipur | 252 | 162 | -36% |
| Arunachal Pradesh | 160 | 86 | -46% |
| Nagaland | 119 | 61 | -49% |
Key Insights
- High-growth momentum in emerging states: Andhra Pradesh, Rajasthan, Kerala, and Jharkhand recorded growth above 45%, reflecting improving industrial policies and startup support.
- Large states still dominate volumes: Maharashtra, Uttar Pradesh, Karnataka, Delhi, Gujarat, and Tamil Nadu together account for a majority of new incorporations despite relatively moderate growth rates.
- Southern and western resilience: Southern states (Telangana, Tamil Nadu, Karnataka, Kerala) and western states (Gujarat, Rajasthan, Maharashtra) continued to attract strong incorporation activity.
- Uneven regional recovery: North-Eastern states displayed mixed performance, with several states reporting year-on-year declines.
Top Gainers (YoY Growth Leaders)
- Lakshadweep (83%) – Small base but rapid formalisation of businesses.
- Andhra Pradesh (56%) – Strong industrial and manufacturing-led incorporations.
- Rajasthan (48%) – Rising SME and infrastructure-linked company formation.
- Kerala (47%) – Continued momentum in services, MSMEs, and startups.
- Jharkhand (45%) – Increased incorporation driven by mining-adjacent and service sectors.
Decliners & Trends
Declining States
- Nagaland (-49%) and Arunachal Pradesh (-46%) saw sharp contractions in new company registrations.
- Manipur (-36%), Tripura (-29%), and Mizoram (-29%) indicate sustained regional challenges.
- Meghalaya (-19%) also experienced a notable slowdown.
Emerging Trends
- Formalisation over concentration: Growth in smaller states and UTs suggests businesses are increasingly registering locally rather than routing incorporations through metros.
- Volume vs growth trade-off: High-volume states like Maharashtra show lower growth rates, indicating maturity, while mid-sized states deliver faster expansion.
- Policy impact visibility: States with focused MSME, manufacturing, and startup policies are translating reforms into higher incorporations.
Conclusion
India’s incorporation data for 2024–2025 underscores a structurally expanding and geographically diversifying business ecosystem. While traditional hubs continue to dominate in absolute terms, the sharp rise in incorporations across emerging states highlights the next wave of entrepreneurial growth. The divergence between high-growth and declining regions also signals where targeted policy intervention and ecosystem support will be crucial to ensure balanced economic development going forward.