Crackdown on shell companies: Only 66% registered firms active; 5.43 lakh closed

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New Delhi | July 29, 2018 11:51 AM

Nearly 66 per cent of 17.79 lakh companies registered in the country were active at the end of June, official data showed amid the government continuing its clampdown on shell entities.

shell companies, definition of shell companies, crackdown on black money, tax evasion, narendra modi, demonetisationIntensifying the crackdown on illicit fund flows, the ministry struck off names of around 2.26 lakh companies last fiscal, from the official records for not carrying out business activities for long.

Nearly 66 per cent of 17.79 lakh companies registered in the country were active at the end of June, official data showed amid the government continuing its clampdown on shell entities. Latest data from the corporate affairs ministry showed that there were more than 11.89 lakh active companies as on June 30. Generally, active companies are those carrying out normal business activities and make their statutory filings on time.

Intensifying the crackdown on illicit fund flows, the ministry struck off names of around 2.26 lakh companies last fiscal, from the official records for not carrying out business activities for long. More such entities are under the scanner and are likely to face regulatory action. Out of the total number of 17.79 lakh registered companies, 5.43 lakh were closed as on June-end and 1,390 were classified as dormant. As many as 38,858 companies were in the process of being struck-off while 6,117 were under liquidation. Among those struck off, 103 companies were in the process of being re-activated, as per the data.

“There were 11,89,826 active companies as on June 30, 2018,” the ministry said. In terms of economic activities, 3.7 lakh companies were into business services and 2.36 lakh entities were engaged in manufacturing, among others. Business services include information technology, research and development, law and consultancy. The ministry said that Maharashtra has the highest number of companies (3,53,556), followed by Delhi (3,22,044) and West Bengal (1,97,823) as on June 30.

“Amongst ‘active companies’, Maharashtra has the maximum number of active companies (2,34,151), followed by Delhi (2,16,286) and West Bengal (1,34,336),” the ministry said in its latest monthly information bulletin. More than 2.25 lakh companies have been identified to be de-registered under the Companies Act, 2013, as part of measures against the blackmoney and checking the menace of entities engaging in illegal activities, as per the ministry.

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