Johar, 44, has named his daughter Roohi and son Yash, after his late father Yash Johar.
"I am ecstatic to share with you all the two most wonderful additions to my life, my children and lifelines; Roohi and Yash. I feel enormously blessed to be a parent to these pieces of my heart who were welcomed into this world with the help of the marvels of medical science," Johar said in a statement.
"In order to arrive at this decision, I have prepared myself mentally, physically, emotionally and logistically to ensure that my children get all the unconditional love, care and attention from me and mine. I have submitted to the fact that my children are my world and priority."
Johar says his work, travels and social commitments will have to take a back seat after the arrival of his kids and he is prepared for that.
Thanking the surrogate, the filmmaker says he is eternally grateful to her as she has fulfilled his "lifelong dream and provided a warm, loving and nurturing environment to my children before bringing them into this world."
Celebrities including Priyanka Chopra, Alia Bhatt and Farah Khan showered their blessings on the new parent and the twins.
"Finally I can say I have a younger brother AND sister!!! So so so happy! So much love to give uff bursting with joy," Alia tweeted.
Sidharth Malhotra, who made his Bollywood debut with Johar's "Student of the Year" alongside Alia and Varun Dhawan, is elated with the decision of his first time director.
"So happy you took this decision Johar! It's a full house now. You will be an amazing father, love to your new big family," he tweeted.
An excited Varun posted, "Karan you are the best human being I know and Im sure you will make the best dad. Can't wait to meet these lil munchkins."
Arjun Rampal tweeted, "@karanjohar Congratulations Johar, this is the best news in years. You will make an amazing parent. Love to the little ones. God bless."
Ayushmann Khurrana said, "Congratulations Karan! This a great step. Happy parenting. You are a role model."
Actress Sonakshi Sinha tweeted, " This is so amazing @karanjohar! You will be the best daddy and spoil them silly I'm sure! Wish you and your family all the happiness."
Johar's "Kal Ho Naa Ho" actress Preity Zinta said, "Congrats @karanjohar? So happy for you and Hiroo Aunty. I'm sure Yash and Roohi will bring light and happiness to your lives."
Director Sujoy Ghosh tweeted, "So cool @karanjohar...Love the names. As one tagline once said 'it's all about loving your parents...'."
Earlier, Johar, in his autobiography, "An Unsuitable Boy", had expressed a desire to adopt or have a surrogate child.
Last year, actor Tusshar Kapoor welcomed a baby boy, who was born through in vitro fertilization (IVF) and surrogacy.
Johar's friend, superstar Shah Rukh Khan's third child, AbRam, was also born via a surrogate in 2013.
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