According to the data presented in the Lok Sabha by the Central Government on Monday, more than two lakh private companies have closed down across the country in the last five years. This data not only reflects the ups and downs of the market, but also points to the campaign launched by the government against ‘shell’ or inactive companies.
According to data provided by Minister of State for Corporate Affairs Harsh Malhotra in a written reply to a question in the Lok Sabha, 2,04,268 private companies have been closed in the last five years. These companies are closed due to merger, conversion, dissolution and removal from records under the Companies Act, 2013.
When and how many companies were closed?
- 20,365 private companies were closed in 2024-25.
- 21,181 in 2023-24
- 83,452 in 2022-23
- 64,054 in 2021-22
- 15,216 private companies were closed in 2020-21.
Government’s step on rehabilitation of employees
On the question whether any steps have been taken to rehabilitate the employees of the closed companies, the Union Minister of State said that there is no such proposal before the government. According to the information given by the government, a total of 1,85,350 companies have been removed from the official records in the five financial years starting from 2021-22.
8648 companies were removed from records
Of these, in this financial year alone till July 16, 8,648 companies have been removed from the records. According to the Companies Act, 2013, if a company does not carry out business activity for a long period of time or the company itself chooses to be deregistered voluntarily by fulfilling the regulatory norms, it can be removed from the official records.
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