Over 3,300 companies set to be struck off official records by Govt

The strike-off process, in line with Section 248(2) of the Companies Act, enables companies to request removal after fulfilling conditions like extinguishing liabilities and obtaining a special resolution or 75% shareholder consent

The Ministry of Corporate Affairs (MCA) has begun the process of removing more than 3,300 companies from the official records after receiving applications for their strike-off. These companies, which are registered under the Companies Act, have either failed to begin business within a year of their incorporation or have been inactive for the past two financial years. The Registrar of Companies (RoC) in various states and Union Territories issued public notices in April as part of the process to remove these entities.

Among the affected companies, Maharashtra has the highest number, with over 700 companies set to be struck off from the registry. Delhi follows closely with nearly 500, while Karnataka has more than 350 companies facing the same fate. Other states such as Gujarat, Uttar Pradesh, and West Bengal will also see substantial numbers of companies removed.

The strike-off process is carried out in compliance with Section 248(2) of the Companies Act, which allows companies to request removal after meeting certain conditions, including extinguishing all liabilities and securing a special resolution or consent from 75% of shareholders.

RoC initiative to clean corporate registry

The public notices issued by the RoCs are part of an effort to ensure transparency and provide an opportunity for stakeholders to object to the proposed removals. By the end of March 2025, India had 18.5 million active companies out of 28.5 million registered.

Maharashtra, Delhi, and West Bengal have consistently held the largest share of active companies. Recent reports show an increase in active companies in Maharashtra, Uttar Pradesh, and Telangana compared to February 2025, while Jammu & Kashmir has also seen a notable rise in new registrations.

This initiative by the Ministry of Corporate Affairs is aimed at cleaning up the corporate registry and ensuring that it accurately reflects businesses that are operational and compliant with the regulations. It also helps prevent misuse of dormant companies for fraudulent activities and supports a more transparent business environment.