In the first half of the ongoing financial year, 25,074 companies were struck off the records by the Ministry of Corporate Affairs, until September 2022. This is also 91 per cent more than the number of companies struck off in the first half of FY 2019-20; 13111 companies were struck off by the MCA then.
Striking off the records is the process of removing the name of a company from the Register of Companies. Section 248 of the Companies Act, 2013 provides for the removal of the name of a company from the Register of Companies if it has not been carrying on any business or operation for a period of two immediately preceding financial years, and has not made any application within the said period for obtaining the status of a dormant company under Section 455 of the Act.
Please click here to read the full article by Lalit Kumar, published in The Hindu Business line.
Lalit is a corporate commercial, M&A and private equity lawyer with a vast experience of twenty-two years. He has successfully led large and complex transactions for Indian and global corporations.