2.5 lakh companies set to be dissolved !

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For not carrying out any business over the last two financial years and failing to apply for ‘dormant’ status about a quarter million companies in India face the possibility of being dissolved

In public notices issued over the last two weeks, the regional offices of the Registrar of Companies (RoC) have named about 250,000 such entities across the country which failed to apply for ‘dormant company’ status under the Companies Act, 2013. Information from the RoCs pegs the number of such companies in Mumbai at over 71,000, 53,000 in Delhi, 40,000 in Hyderabad and 22,000 in Bengaluru.

As per norms, the names of these companies will be struck off and the entities dissolved in the absence of any objection, an official said. The notices, available on the website of the ministry of corporate affairs, were issued under the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2016, which was notified by the corporate affairs ministry on December 26, 2016. Looking at the numbers, next are the cities of Ahmedabad, Kolkata and Pune with 11,000-12,000 companies.

Source:ET