Over 37,000 Companies Voluntarily Shut Operations In Past 2 Years: Centre
These companies chose to exit the registry after extinguishing all their liabilities, following the due process prescribed under the law, the minister said
Between May 1, 2023, and June 30, 2025, a total of 37,212 companies voluntarily removed their names from official records under Section 248(2) of the Companies Act, 2013, the Parliament was informed on Tuesday.
“During the period from 01.05.2023 to 30.06.2025 total number of 37212 companies have availed the exit process under Section 248(2) of the Companies Act, 2013,” according to figures furnished by Minister of State for Corporate Affairs Harsh Malhotra, in a written reply to a question in the Rajya Sabha.
These companies chose to exit the registry after extinguishing all their liabilities, following the due process prescribed under the law, the minister said.
Section 248(2) allows companies to apply for strike-off if they are no longer carrying on business and have cleared all dues.
Responding to a question the minister clarified that while the last government-led strike-off drive under Section 248(1) was conducted in 2022-23, no such mass drive is currently underway.
“Under Section 248(1), the Registrar of Companies can strike off firms that have not carried out any business or operations for two consecutive financial years and have not applied for dormant status, or where subscribers have not paid the promised share capital within 180 days of incorporation,” he mentioned.
A voluntary strike-off is when a company decides to close down on its own, with the approval of its shareholders, after clearing all its pending debts and dues.
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The company then applies to have its name removed from the official register of companies, which means it will no longer exist.
This is different from an involuntary strike-off, where the Registrar of Companies (ROC) starts the process to close a company because it has not been following the rules or has been inactive.
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
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