IT, trade lead surge in new company registrations; AI tag gains ground

IT sector, according to the data.There has also been a visible surge in companies explicitly branding themselves as AI-focused. At the beginning of FY26, 84 companies in every 10,000 new registrations mentioned ‘AI’ in their names.

By March 2026, that number had risen to 120 per 10,000 registrations.Importantly, AI branding is no longer confined to core IT services. Businesses describing themselves as AI-based are spread across health, education and consultancy, indicating growing cross-sectoral adoption, indicated the data.Wholesale and retail trade continue to form the backbone of new incorporations.The number of companies incorporated with wholesale trade as the main activity ranged between 1,400 and 2,600 per month in FY26.

Retail trade businesses incorporated during the year ranged from 900 to 1,400 per month.On average, fewer than a dozen government companies—central and state combined—were formed each month.Despite the surge in registrations, most newly incorporated firms remain small.Companies registered in January—the latest month for which detailed incorporation data is available—had average paid-up capital of about ₹6 lakh and authorized capital of roughly twice that amount. However, the actual investment could be significantly higher since debt constitutes a substantial portion of total investments.Business registrations are often viewed as a proxy for formalization, investment intent and entrepreneurial momentum.“The consistent rise in new company incorporations, particularly in technology, trade, and AI-enabled activities signals more than just numerical growth,” said Amit Maheshwari, managing partner, AKM Global, a tax and consulting firm.