67% of 17.87 lakh companies registered in India active

By: |
New Delhi | September 26, 2018 4:56 AM

Out of the total number of 17.87 lakh registered companies in India, 5.43 lakh were closed as on July 31, and 1,381 were classified as dormant. As many as 38,802 companies were in the process of being struck off while 6,111 were under liquidation.

company, industryThe task force has compiled a database of shell companies by the Serious Fraud Investigation Office.

About 67% of the 17.87 lakh companies registered in India were active at the end of July, data from the ministry of corporate affairs showed amid the government continuing its clampdown on shell companies. There were more than 11.98 lakh active companies as of July-end. Active companies are those carrying out normal business activities and make their statutory filings to the stock exchanges on time.

Out of the total number of 17.87 lakh registered companies in India, 5.43 lakh were closed as on July 31, and 1,381 were classified as dormant. As many as 38,802 companies were in the process of being struck-off while 6,111 were under liquidation. Among those struck off, 103 companies were in the process of being reactivated, according to the ministry.

In terms of economic activities, 3.74 lakh companies were into business services and 2.37 lakh entities were engaged in manufacturing and other lines of work. Business services include information technology (IT), research and development, law and consultancy.

Earlier this year, the task force on shell companies set up by the government identified more than 2.25 lakh such firms which will be removed from the register of companies in the current financial year. These companies have not filed their financial statements or annual returns for the two financial years — FY16 and FY17 — and hence are chosen for removal from the register of companies under section 248 of the Companies Act.

The move is part of a drive to weed out entities that do no economic activity and are a burden on the system. The ministry also combs through the database of companies to see if any of the companies are used for economic offences like money laundering.

The corporate affairs ministry has already struck off over 2.26 lakh companies in previous financial year for non-filing of financial statements or annual returns for a continuous period of 2 years or more.

To check tax evasion and prevent money laundering especially in the wake of demonetisation, the government had constituted a task force last year under the chairmanship of the revenue and finance secretary Hasmukh Adhia and corporate affairs secretary Injeti Srinivas.

The task force has compiled a database of shell companies by the Serious Fraud Investigation Office. The authorities have frozen the accounts of those shell companies which have been removed from the list and their directors have been restricted from accessing the bank accounts of these companies, the government had said.

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