India In the last 5 years, more than 2 lakh private companies have been closed. The government shared this information in the Lok Sabha on Monday. Minister of State for Corporate Affairs Harsh Malhotra said in a written reply that a total of 2,04,268 private companies have been closed in the last five years under the Companies Act, 2013. He told that these companies were closed due to reasons like merger and conversion. Apart from this, some companies were closed due to not wanting to do business, while many companies were closed due to not being active for a long time.
How many companies were closed in which year?
According to data shared by the government in the Lok Sabha, a total of 15,216 private companies were closed in India in the financial year 2020-21. Whereas in 2021-22, 64,054 companies were locked. Maximum 83,452 private companies were closed during 2022-23. After this, a total of 21,181 companies were closed in 2023-24. During the last financial year 2024-25, a total of 20,365 companies were closed across the country. In this way, a total of 2,04,268 private companies were closed from 2020-21 to 2024-25.
What is the number of companies being closed in the current financial year?
The Ministry of Corporate Affairs has delisted 1,85,350 companies from official records over the 5 financial years starting 2021-22. In the current financial year, 8648 companies have also been removed from the records till July 16, 2025. Let us tell you that companies can be removed from the registry in such circumstances when they have stopped working for a long time or want to withdraw on their own after fulfilling the regulatory requirements.
were these shell companies
On questions related to shell companies and the possibility of money laundering, Minister of State for Corporate Affairs Harsh Malhotra said that the term “shell company” has not been defined in the Companies Act, 2013. He said 1,85,350 companies were struck down between 2021-22 and July 16 this year, of which a maximum of 82,125 companies were struck off in 2022-23 during the strike-off drive run by the ministry targeting inactive firms. In response to the question of rehabilitation of employees of 2,04,268 private companies that were closed in the last 5 years, Minister of State Harsh Malhotra said that the government does not have any such proposal.
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