Corporate Affairs Ministry to Remove 3,300 Firms from Official Records

Image Source : Business Standard

The corporate affairs ministry is set to strike off the names of more than 3,300 companies from official records following applications for removal. The Registrar of Companies across various states and Union Territories issued public notices in April, in accordance with the Companies Act, to facilitate the removal process.

Latest Developments

- The affected companies span multiple states, including Maharashtra, Delhi, Karnataka, Gujarat, Uttar Pradesh, and West Bengal
- Applications for removal were submitted under Section 248(2) of the Companies Act, citing reasons such as failure to commence business within one year of incorporation or inactivity for two consecutive financial years
- Companies seeking removal must extinguish all liabilities and obtain approval from 75 percent of members based on paid-up share capital
- Public notices were issued to allow objections before finalizing the removal process
- As of March 2025, India had 18,50,932 active companies out of a total of 28,52,449 registered firms

Regulatory Action and Business Impact

The move reflects ongoing efforts to streamline corporate records and ensure compliance with regulatory frameworks. Authorities continue to monitor inactive firms to maintain transparency and accountability in the business sector. The removal process is expected to refine corporate governance and make business listings more reflective of active enterprises.

Sources: Business Standard, Economic Times, MSN News, Rediff Money, Tribune India.