Whalesbook
Foreign Companies Reach Nine-Year Registration Peak
India has seen a major increase in foreign company registrations, with entities from Singapore, the United States, and the United Kingdom at the forefront. The Ministry of Corporate Affairs (MCA) reported a substantial rise in registrations for fiscal year 2026, marking the highest total in nine years. This inflow signals a strong revival of international business interest and investment in India's economy. In total, 101 foreign companies registered in India during FY26, a notable jump from 57 in FY25 and nearing the previous high of 103 in FY17.
Top Countries Driving Growth
Singapore led the way with 13 new company registrations, up from seven in the previous fiscal year. The U.S. followed with 10 new registrations, up from six, and the U.K. saw nine new entities, more than doubling from four. Germany also showed significant growth, registering eight companies compared to just one in FY25, while South Korea registered eight companies, up from four. Japan's registrations slightly decreased to seven from eight.
Together, Singapore, the U.S., the U.K., Germany, and Japan are major contributors to India's Foreign Direct Investment (FDI) equity inflows, making up 62.4% of the total recorded up to December of FY26.
FDI Momentum Surges with Record Registrations
The rise in foreign company registrations aligns with India's growing appeal as an FDI destination. From April to December 2025 (FY26), FDI equity inflows grew by a strong 22% year-on-year in rupee terms, reaching Rs. 4,16,709 crore (US$ 47.87 billion). India's consistent economic expansion, with 2026 growth forecasts generally exceeding 6.5%, supports this upward trend. Government efforts to improve the ease of doing business and liberalize FDI rules have been crucial. Singapore alone contributed approximately 37% of India's total FDI equity inflows from April-December 2025-26, totaling USD 17.65 billion.
New Countries and Sector Focus
FY26 also saw the first-time registration of companies from South Africa, Ghana, and Uzbekistan in India. China registered three companies, ranking eighth, a recovery from zero in the previous three years. The services sector continues to be the largest area for new foreign company registrations, accounting for 87% of entrants in 2025. This includes business and professional services, finance, insurance, real estate, trading, transport, storage, and communications.
The industrial sector, including manufacturing, experienced a notable increase, with 10 foreign manufacturing firms establishing a presence in 2025, up from just two the year before. This rise in manufacturing registrations supports India's broader strategy to strengthen its industrial base.
India's Economic Outlook
This surge in foreign company registrations is occurring as India is projected to remain one of the fastest-growing major economies globally in 2026, despite international uncertainties like geopolitical tensions and commodity price fluctuations. Forecasts estimate real GDP growth around 6.9% for 2026, driven by strong domestic demand and ongoing reforms. The government's proactive policies, along with infrastructure improvements and a dynamic business climate, continue to attract international capital. FDI inflows for the first eleven months of FY26 surpassed USD 88 billion, reflecting sustained international confidence.