Govt to strike off names of over 3,300 firms from official records
The Ministry of Corporate Affairs (MCA) has announced that it will strike off the names of over 3,300 companies across the country from official records. This move is aimed at weeding out inactive and non-functional companies that have failed to commence business operations within a year of their incorporation.
The decision to cancel the names of these companies is based on various reasons, including their inability to commence business operations within one year of their incorporation, as mandated by the Companies Act, 2013. The MCA has identified these companies as non-compliant with the provisions of the Act and has taken the necessary steps to strike off their names from the official records.
According to the data, out of the total 3,300 companies, 700 are located in Maharashtra, 500 are in Delhi, over 350 are in Karnataka, and 200 are in Gujarat. These companies have failed to demonstrate any significant business activity or have not filed their annual returns with the MCA, which is a mandatory requirement under the Companies Act.
The MCA has been taking strict action against companies that fail to comply with the provisions of the Companies Act. In recent years, the ministry has struck off the names of thousands of companies that have failed to meet the minimum thresholds for business activity or have not filed their annual returns.
The move is expected to improve the overall corporate governance and transparency in the country. It will also help to curb the menace of shell companies, which are often used for illegal activities such as money laundering and tax evasion.
The cancellation of names of these companies will also have a positive impact on the economy. It will help to free up resources and reduce the burden on the government, which is often forced to bear the cost of maintaining records of inactive companies.
The MCA has been working towards improving the corporate governance and transparency in the country. In recent years, the ministry has implemented several reforms to strengthen the corporate sector and improve the overall governance.
Some of the key reforms implemented by the MCA include the introduction of the Companies (Amendment) Act, 2017, which aimed to improve the corporate governance and transparency in the country. The Act introduced several key reforms, including the requirement for companies to file their annual returns electronically and the introduction of a new framework for the appointment of independent directors.
The MCA has also been working towards improving the ease of doing business in the country. In recent years, the ministry has implemented several reforms to simplify the process of company incorporation and reduce the bureaucratic hurdles faced by entrepreneurs.
The move to strike off the names of over 3,300 companies is a significant step towards improving the corporate governance and transparency in the country. It will help to curb the menace of shell companies and improve the overall corporate sector.
