Indian Economy News

Foreign company registrations in India hit nine-year high in FY26

India witnessed a significant rise in the number of foreign companies establishing operations in the country during FY26, reflecting growing global confidence in its economic prospects and business environment. According to an analysis of data from the Ministry of Corporate Affairs (MCA), registrations of foreign companies rose to a nine-year high of 101 in FY26, compared with 57 in FY25. Singapore emerged as the leading source of new entrants, with 13 registrations, followed by the United States with 10 and the United Kingdom with nine. South Korea and Germany also recorded strong growth in registrations, while Japan continued to be among the leading contributors. Together, Singapore, the US, the UK, South Korea, Germany and Japan accounted for more than half of all foreign company registrations during the year, highlighting India’s growing appeal as a destination for international businesses seeking market expansion and investment opportunities.

The increase in registrations underscores the strengthening presence of global enterprises across sectors in India and reflects the country's expanding role in international supply chains and investment flows. Germany recorded one of the sharpest increases, with registrations rising to eight from one in FY25, while South Korea’s registrations doubled to eight from four. The data also showed diversification in the origins of foreign businesses entering India, with companies from South Africa, Ghana and Uzbekistan registering operations in the country for the first time during FY26. Under the Companies Act, 2013, a foreign company refers to an entity incorporated outside India that conducts business in the country either directly or through an agent. The continued rise in foreign company registrations highlights India's attractiveness as a large consumer market, manufacturing base and investment destination amid evolving global business strategies.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.