Foreign Company Registrations in India Reach 5-Year Peak in 2025, Services Command 87% Share

Registrations by foreign companies setting up operations in India climbed to their highest level in 5 years in 2025, signalling renewed global interest in the Indian market and its growth prospects. 

Registrations Jump to 5-Year High 

According to an analysis of Ministry of Corporate Affairs data, 92 overseas companies registered in India in 2025, compared with 53 in 2024 and 76 in 2021.  

The last time registrations were higher was in 2020, when 93 foreign firms entered the Indian market. Most of the new entities were incorporated in Maharashtra, Karnataka, Delhi and Gujarat.  

Under the Companies Act, 2013, a foreign company refers to an entity incorporated outside India that establishes a place of business within the country. 

Services Sector Dominates New Entrants 

The services segment accounted for 87% of the new foreign company registrations in 2025, or 80 out of 92 firms, up from about 81% a year earlier.  

This category spans business and professional services, finance and insurance, real estate, trading, transport, storage, communications and social services.  

The industrial segment, covering manufacturing, construction, mining and quarrying, made up the remaining 13%. Notably, the number of foreign manufacturing firms registering in India increased to 10 in 2025 from just two in 2024. 

Active Company Base and Broader Trend 

India had 5,302 registered foreign companies as of December 2025, about 5.3% higher than in 2021. Of these, 3,285, or roughly 62%, were active, slightly lower than the share recorded in 2021.  

Overall company registrations in India also expanded, with the total number of active registered companies rising to about 2.01 million by December, up from around 1.80 million a year earlier. 

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Conclusion 

The rise in foreign company registrations, led overwhelmingly by services firms, points to strengthening global business confidence in India’s market environment and growth outlook. 

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