Around 63 per cent of the 17.95 lakh companies registered in India were active at the end of August, data from the ministry of corporate affairs showed amid the government continuing its clampdown on shell companies. There were more than 11.28 lakh active companies as of August-end. Active companies are those carrying out normal business activities and make their statutory filings to the stock exchanges on time.
Out of the total number of 17.95 lakh registered companies, 6.11 lakh were closed as on August 31 and 1,488 were classified as dormant. As many as 47,538 companies were in the process of being struck-off while 6,197 were under liquidation. Among those struck-off, 102 companies were in the process of being reactivated, according to the ministry.
Of the 6.11 lakh closed companies, 10,562 companies were liquidated, 5,65,342 companies were declared defunct. As many as 21,704 companies were merged with other companies, 9436 companies were converted to Limited Liability Partnership (LLP) and 4,794 were converted to LLP and dissolved. In terms of economic activities, around 3.60 lakh companies were into business services and 2.31 lakh entities were engaged in manufacturing and other lines of work. Business services include IT, research and development, law and consultancy. According to the corporate affairs ministry, Maharashtra has the highest number of companies (2,34,406), followed by Delhi (1,96,173) and West Bengal (1,34,005), as on August 31. In June, the task force on shell companies set up by the government had identified more than 2.25 lakh such firms which will be removed from the register of companies in the current fiscal.