The Ministry of Corporate Affairs strikes off 10,113 companies between April 2020 and February 2021

The Ministry of Corporate Affairs (MCA) administers the Companies Act, 2013 (the Act), Limited Liability Partnership Act, 2008 and Insolvency and Bankruptcy Code, 2016. There is no provision for weeding out the Companies in the Act.

This was stated by Shri Anurag Singh Thakur, Union Minister of State for Finance & Corporate Affairs, in a written reply to a question in Lok Sabha today.

However, the Minister further stated that during the current financial year 2020-2021 i.e. from the month of April 2020 to February 2021, total 10,113 number of Companies have been struck off by invoking the provisions of section 248 (2) of the Act which are not carrying on any business or operation for a period of two immediately preceding financial years and have not made any application within such period for obtaining the status of dormant company under section 455 of the Act and after following the due process of the law.

Giving more information, the Minister said that there are 12,59,992 Private Limited Companies registered having active status as on 31.01.2021 .Details of Partnership firms are not maintained by MCA. There are 10,98,780 number of active Private Limited Companies registered till 31.12.2019 which are eligible/due to file Financial Statement(FS) for the year ended 31.03.2020 .Out of these 7,15,243 number of Companies have filed FS for the year ended 31.03.2020.

Thereby 65 percentage of active eligible Private Limited Companies have filed Financial statement for the financial year ended 31.03.2020, the Minister stated.

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