Over one-third of registered companies out of business
According to official data more than one-third of the 1.7 million registered companies in India were shut down as on end of October. While authorities step up their clampdown on companies suspected of being used as a conduit for illegal activities, the number of active firms stood at little over 1.13 million as on October 31.
The corporate affairs ministry, which is implementing the Companies Act, has so far struck off the names of around 224,000 entities that have not been carrying out business activities for long.
“The total number of companies registered in the country as on October 31, 2017, stood at 17,04,319. There were 11,30,784 active companies as on October 31, 2017,” the ministry said in a report for October.
According to the report, out of the total, 535,000 companies were shut, 1,123 were assigned dormant status, 5,957 were under liquidation and 31,666 were in the process of being struck-off, among others.